IMPACT OF ONLINE

BUSINESS ON INDIAN
ECONOMY – A CASE
OF JHARKHAND
Vijyata
Supervised by – DR.B.M.Sahu
 To find out –
What is the level of development and the impact of online
business on the enabler and allied industries in India?
Objective What is the level of development and the impact of online
of Research business on the Indian economy?
What is the level of development and the impact of online
business on the economy of Jharkhand?
What is the impact of online business on job creation in India?
What is the impact of online business on job creation in
Jharkhand?
 R1. Does online business have a significant impact on its enabler
industries?
R1.1. Does online business have any significant impact on Information technology
industry?
Research R1.2. Does online business have significant impact on telecommunication industry?
R1. 3. Does online business have significant impact on supply chain and Logistics
industry?
Questions R1. 4. Does online business have significant impact on digital payment?
 R2. Does online business have any significant impact on drivers of
economy, consumers, business and Government taken collectively?

R2.1. Does online business has a significant impact on how consumers buy a product
in India and Jharkhand ?
R2.2. Does online business have an economic impact on businesses in India and
Jharkhand?
- R2.2.1. Does online business have any direct impact on GDP of India ?
Research - R2.2.2 Does online business have an impact on different business sectors in India?
- R2.2.3. Does online business significantly impact the microeconomic factors influencing
Questions business running in Jharkhand?
R2.3. Does online business has a significant impact on Governance practices carried
out by Government of India?

R3. Does online business have any impact on job creation?

 H1o: Online business does not have any impact on IT and ITes industry
H1A : Online business has a significantly impact on the IT and ITes industry.
H2o: Online business has no impact on telecommunication industry
H2A: Online business has significant impact on telecommunication industry
H3O: Online business has no impact on supply chain and logistics industry
H3A: Online business has significant impact on supply chain and logistics
industry
H4O : Online business has not impact on digital payment
Hypothesis H4A: Online business has significant impact on digital payment
H5o: Online business has no impact on consumers buying behaviour
H5A: Online business has significant impact on consumers buying behaviour
H6o: Online Business has no impact on GDP of India
H6A: Online Business has significant impact on GDP of India
H7o: Online Business has no impact on retail industry
H7A: Online Business has significant impact on retail industry
 H8o: Online Business has no impact on travel, matrimony and utility payment
industry
H8A: Online Business has significant impact on travel matrimony and utility
payment industry
H9o: Online Business has no impact on Education industry
H9A: Online Business has significant impact on education industry
H10o: Online Business has no impact on Logistic industry
H10A: Online Business has significant impact on logistics industry
Hypothesis H11o: Online business no effect on the productivity and efficiency of the firm
H11A: Online business has increased the productivity and efficiency of the firm
H12o: Online business has no impact on governance practices of Government of
India
H12A: Online business has a significant impact on governance practices of
Government of India
H13o: Online business has no impact on government trade
H13A: Online business has a significant impact on government trade
  Sampling Technique
 Random sampling for consumer data and
judgemental sampling for Companies
 Sample Size
 341 consumers and 60 companies of
Jharkhand
Research  Research type
Design  Descriptive Research
 Research Method Explore, Correlation,
Regression Graphical Representation
 Case Study of CCL and MSTC (for
Jharkhand )
 Statistical tool used – SPSS 23
 The finding based on the
Findings research question are
summarised below
 H1O Null Hypothesis Online Business has no impact on IT and ITeS Industry
Reject
H1A Alternate Online Business has significant impact on IT and ITeS
Hypothesis Industry Accept

R1. Does H2O Null Hypothesis Online Business has no impact on telecommunication
industry
Reject

Alternate Online Business has significant impact on

online business H2A
Hypothesis
Null Hypothesis
telecommunication industry
Online Business has no impact on supply chain and
Accept
Online business
H3O has a significant
have a H3A Alternate
logistics industry
Online Business has significant impact supply chain and
Reject
impact on
enabling sectors
significant H4O
Hypothesis
Null Hypothesis
logistics industry
Online Business has no impact on Digital payment
Accept
of Online
business in
impact on its H4A Alternate
industry
Online Business has significant impact on Digital
Reject
India; hence,
online business

enabler Hypothesis Payment industry

Accept
has a significant
impact on the

industries? economy of
India.
 H6O Null Online Business has no impact on GDP of India Reject
Hypothesis
H6A Alternate Online Business has significant impact on GDP of India Accept
Hypothesis
H7O Null Online Business has no impact on retail industry Reject
R2. Does online Hypothesis
business have H7A Alternate Online Business has significant impact on retail industry Accept

any significant H8O

Hypothesis
Null Online Business has no impact on travel, matrimony and Reject
impact on drivers Hypothesis utility payment industry Online
of economy, H8A Alternate Online Business has significant impact on travel, Accept business

consumers, H9O
Hypothesis
Null
matrimony and utility payment industry
Online Business has no impact on Education industry Reject
has a
significant
business and Hypothesis impact on

Government H9A Alternate

Hypothesis
Online Business has significant impact on Education
industry
Accept business
sectors of
taken H10o Null Online Business has no impact on Logistic industry Reject India;
collectively? Hypothesis hence,
H10A Alternate Online Business has significant impact on Logistic Accept online
Hypothesis industry business
has a
significant
impact on
the
economy of
 %age response
Options Response
Questions to the respondents of sample
Do you use any software or ERP for billing, Yes 64 85.3%
invoices and accounting in your company? No 11 14.7%
Yes 50 66.7%
Do you own website?
No 25 33.3%
Do you have email for internal external Yes 54 72%

Impact of use communication? No

Yes
21
50
28%
66.7%
Do you think online business tools have
of ICT on the increased your business turnover? No 25 33.3%
Do you think online business tools have Yes 52 69.3%
economy of increased your business visibility and
geographical reach? No 23 30.7%

Jharkhand Do you think online business tools have

decreased your cost of acquiring customer?
Yes
No
47
28
62.7%
32.3%
No effect on
27 36%
labour/employee
Do you think online business tools have Yes, I have decreased my
decreased your labour cost? 27 36%
number of employees
No, I had to hire more
21 28%
people
Yes 54 72%
Have online business tools have increased your
business efficiency and productivity?
No 21 28%
 percentage of e-Auction of coal by CCL and gain over quantity sold
90000 45.00%

80000 41% 40.00%

70000 35.00%
32%
60000 30.00%
50000 25.00%

40000 20.00%

30000 15.00%

Impact of
14% 12%
20000 11% 10.00%

10000 5.00%

online trade in 0
2014-15 2015-16 2016-17 2017-18 2018-19
0.00%

Jharkhand –
Gain-over quantity (MT) in million % of eA-uction of coal

Cases of CCL
and MSTC

MS TC F i n a n ci a l s t a t us - e Co m me r ce
e-S ales

e-
Procurem e
nt

Linea r (e-
Procurem e
nt)

T rading

Year
 Emloyement created by online business components
Ecommerce Linear (Ecommerce) Technology

307263
194470
R3. Does

135921
123082

86013
77900
online

54417
49304

34403
31205

21709
19750
12500

13627
8430
5000
business have 2012 2013 2014 2015 2016 2017 2018 2019

any impact on
job creation? 100000
EMPLOYEMENT GENERATED BY ALLIED ONLINE BUSINESS INDUSTRIES

(in India) 90000

80000
70000
60000
50000
40000
30000
20000
10000
0 Logistics Linear (Logistics)
2012 2013 2014 2015 2016 2017 2018 2019
Warehousing Linear (Warehousing)
 Campus placements in Jharkhand
600
544
500 467

400
315
300 258
200

R3. Does 100

11
133

29 26 36 38 31
72 64 86 77

online 0
2015 2016

Ranchi Women’s College

2017 2018

Linear (Ranchi Women’s College)

2019

business have Jharkhand Rai University

ISM Pundag
Linear (Jharkhand Rai University)

any impact on n o . o f s tart-u p s

job creation? 10000

no. of start-ups in jharkhand no. of start-ups in India
8900
(in Jharkhand ) 8000
7600

6000 4800 5100

4200
4000

2000 571 628 827 954

469
0
2015 2016 2017 2018 2019
  Online business increases the productivity and efficiency companies in
India should start focusing on business automation
 Ecommerce and all the allied industries of online business have immense
potential to create new employment opportunities in the country,
Government of India should pump in their resources in online allied
industries
 The government should bring some tax reforms like tax holidays for these
industries as their incentives to promote employment generation.
 Government of India has saved substantial amount by introducing digital
Suggestions India initiatives and channelizing all the welfare benefits through digital
medium, GoJ should maximise this too.
 The GoI as well as of states should put all the data on display on digital
mediums i.e. their websites in order to promote transparency and to
increase the faith of the general public.
 GoI should work on cyber security
 GoI should promote online start-ups