2. Economics Notes Extra 04

Elaborate Notes

Fertiliser Sector

The fertiliser sector is a critical component of India’s agricultural economy and is recognized as one of the eight core industries, highlighting its foundational role in industrial and agricultural output. The performance of this sector directly impacts food security, agricultural productivity, and the livelihoods of millions of farmers.

• Consumption Pattern: The consumption of fertilizers in India is heavily skewed towards Urea (a nitrogenous fertilizer), which accounts for over two-thirds of the total fertilizer consumption. This imbalanced use is largely a consequence of government policy, where Urea’s Maximum Retail Price (MRP) is statutorily fixed and heavily subsidized, making it significantly cheaper than phosphatic (P) and potassic (K) fertilizers. The ideal N:P:K (Nitrogen:Phosphorus:Potassium) ratio for Indian soils is generally considered to be 4:2:1, but as per the Economic Survey 2022-23, the actual ratio was an adverse 7.7:3.1:1 in Kharif 2022, indicating excessive use of nitrogen. This imbalance degrades soil health, leading to diminished crop yields over time and micronutrient deficiencies.

• Import Dependence: India is self-sufficient in the production of Urea but remains heavily dependent on imports for its entire requirement of Potash and a significant portion of its Phosphatic fertilizers. Muriate of Potash (MOP), the primary source of potassium, is entirely imported, with major suppliers being Canada, Jordan, and Russia. Similarly, for Di-Ammonium Phosphate (DAP), India relies on imports from countries like China and Saudi Arabia to bridge the gap between domestic production and demand. This import dependency exposes the country to international price volatility and geopolitical supply chain disruptions.

• Classification of Fertilizers: Fertilizers are categorized based on the nutrients they supply to plants.

  • Primary Nutrients: These are required by plants in large quantities and are fundamental to their growth and development. They include:
    • Nitrogenous Fertilizers: Supply nitrogen, crucial for vegetative growth and protein formation. The most common example is Urea ((NH₂)₂CO).
    • Phosphatic Fertilizers: Supply phosphorus, which is vital for root development, flowering, and energy transfer. Di-Ammonium Phosphate (DAP - (NH₄)₂HPO₄) is a prime example.
    • Potassic Fertilizers: Supply potassium, which enhances disease resistance, stalk strength, and overall plant vigor. Muriate of Potash (MOP - KCl) is the most widely used potassic fertilizer.
  • Secondary Nutrients: These are required in smaller quantities than primary nutrients but are still essential. They include Calcium (Ca), Magnesium (Mg), and Sulphur (S). Sulphur deficiency, in particular, has become widespread in Indian soils.
  • Micronutrients: Required in trace amounts, these are nonetheless critical for various metabolic functions in plants. They include Iron (Fe), Manganese (Mn), Zinc (Zn), Copper (Cu), Boron (B), Molybdenum (Mo), and Chloride (Cl). The Soil Health Card Scheme, launched in 2015, has been instrumental in identifying widespread deficiencies of micronutrients like zinc and boron across the country.

Different Schemes Related to Fertilizer Subsidy

The Government of India has been implementing various schemes to rationalize the fertilizer subsidy regime, improve nutrient use efficiency, and promote sustainable agricultural practices.

• Subsidy Delivery Mechanism: There has been a significant shift in how subsidies are delivered. Previously, the subsidy was paid to manufacturers at the factory gate. The current system, implemented since 2018, is a form of Direct Benefit Transfer (DBT). Under this model, fertilizer companies receive the subsidy only after the retailer sells the subsidized fertilizer to a farmer through a Point of Sale (PoS) device, which authenticates the buyer’s identity via Aadhaar. This system, monitored through the Integrated Fertilizers Management System (iFMS) dashboard, aims to plug leakages and prevent diversion. However, it has not entirely eliminated issues like hoarding by retailers or bulk purchases by larger farmers.

• PM-PRANAM (Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother-Earth): Announced in the Union Budget 2023-24, this innovative scheme aims to reduce the use of chemical fertilizers by incentivizing states. It does not have a separate budget and is financed by the savings from existing fertilizer subsidies. The core idea is to encourage states to adopt alternative fertilizers and balanced fertilization.

• Market Development Assistance (MDA): This scheme provides financial support for the promotion and marketing of organic fertilizers produced from bio-waste. A key focus is on fermented organic manure produced from GOBAR-Dhan plants. It aims to create a circular economy by converting waste into wealth and improving soil health.

• GOBAR-Dhan (Galvanizing Organic Bio-Agro Resources-Dhan): Launched in 2018 as a part of the Swachh Bharat Mission (Grameen), this initiative focuses on managing cattle and organic waste in villages. It aims to convert this waste into biogas and bio-slurry/fermented organic manure, contributing to rural sanitation, clean energy, and organic farming.

• Sulphur-coated Urea (Urea Gold): Introduced in 2023, Urea Gold is a novel fertilizer that coats urea with sulphur. This provides two key benefits: it addresses the widespread sulphur deficiency in Indian soils, and it ensures a more gradual release of nitrogen, improving its absorption by plants (Nutrient Use Efficiency). This makes it more efficient and economical than the currently used Neem-coated Urea, which was introduced in 2015 primarily to slow down nitrogen release and prevent the diversion of urea for industrial use.

• Urea Subsidy Scheme Extension: The Cabinet Committee on Economic Affairs has extended the Urea Subsidy Scheme until March 2025. This decision is part of a broader strategy to achieve self-sufficiency in urea production by 2025, primarily by reviving defunct fertilizer plants (e.g., in Gorakhpur, Ramagundam, and Sindri) and promoting domestic production of Nano Urea.

PM PRANAM (Related to Fertilizer Subsidy)

The PM-PRANAM scheme is a policy intervention designed to alter the incentive structure for states regarding fertilizer consumption.

• Mechanism of Incentive: The scheme is based on a reward system. If a state successfully reduces its consumption of chemical fertilizers compared to a baseline, 50% of the resultant subsidy savings for the central government will be passed on to that state as a grant.

• Utilization of Grant: The scheme specifies how the grant money is to be used, ensuring it is reinvested in sustainable agriculture.

  • 70% of the grant is designated for asset creation. This includes establishing infrastructure and technology related to the production and adoption of alternative fertilizers and natural farming methods at various administrative levels (village, block, district).
  • The remaining 30% can be used to directly incentivize and reward farmers, Panchayats, Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs) who are actively involved in reducing fertilizer usage and generating awareness.

• Performance Measurement: The reduction in fertilizer use will be calculated by comparing a state’s consumption of urea in a given year against its average consumption over the previous three years. This multi-year baseline helps to smooth out annual fluctuations. All relevant data will be captured and monitored through the Department of Fertilizers’ iFMS (Integrated Fertilizers Management System) dashboard, ensuring a transparent and data-driven evaluation process.

Food Storage in India

The agricultural support ecosystem in India comprises several key components that contribute indirectly or directly to food management and storage.

• Custom Hiring Centers (CHCs): Primarily related to agricultural mechanization, CHCs are centers that rent out farm machinery and equipment to small and marginal farmers who cannot afford to purchase them. By enabling timely farm operations, CHCs help improve productivity and reduce post-harvest losses, which is an indirect contribution to food preservation. This initiative is a core component of the Sub-Mission on Agricultural Mechanization (SMAM).

• Fair Price Shops (FPS): Commonly known as ration shops, FPS are the final distribution points of the Public Distribution System (PDS). They distribute subsidized food grains and other essential commodities to beneficiaries under the National Food Security Act (NFSA), 2013. While their primary role is distribution, they are the last link in the government’s food storage and supply chain.

• Primary Agricultural Credit Societies (PACS): These are village-level cooperative credit institutions that form the bedrock of the rural cooperative credit structure. They are the last link in a three-tier structure comprising the State Cooperative Banks (SCBs) at the apex level, District Central Cooperative Banks (DCCBs) at the intermediate level, and PACS at the base. Traditionally, their main function has been providing short-term crop loans. However, a major recent initiative, the ‘World’s Largest Grain Storage Plan in Cooperative Sector’ (announced in 2023), aims to leverage the vast network of PACS to create decentralized storage capacity at the village level, thereby reducing wastage and strengthening the national food grid. The Vaidyanathan Committee (2005) had earlier made significant recommendations for the revival and strengthening of this cooperative credit structure.

Managing Food Inflation in India

Managing food inflation is a perpetual policy challenge, requiring a delicate balance between protecting consumers from price shocks and ensuring remunerative prices for farmers.

• Impact of Policy Interventions: A study by the Indian Council for Research on International Economic Relations (ICRIER), a prominent economic think tank, estimated that government measures to curb food inflation, such as banning exports of wheat and non-basmati rice, resulted in a notional loss of at least ₹45,000 crore for farmers in 2023. This illustrates the concept of ‘implicit taxation’ on the farm sector, a point frequently highlighted by agricultural economist Ashok Gulati. Such trade restrictions, while providing short-term relief to consumers, can depress domestic prices and disincentivize farmers.

• Climate-Induced Shocks: Recent food inflation spikes have been primarily driven by supply-side shocks linked to adverse weather events.

  • Wheat Inflation: The surge in wheat prices in 2022 was largely attributed to unseasonal heat waves in March, a critical grain-filling stage, which shriveled the crop and reduced yields in major producing states like Punjab and Haryana.
  • Rice Inflation: The pressure on rice prices in 2023 was due to an erratic monsoon, characterized by excessive rainfall and flooding in some parts of the country and drought-like conditions in others, affecting paddy cultivation.

• Structural Vulnerability: India’s agriculture remains highly vulnerable to the vagaries of the monsoon. Official data indicates that only about 51% of the country’s gross cropped area is under irrigation. A significant portion of this irrigation is dependent on groundwater, which is being over-exploited, while surface irrigation systems face challenges of efficiency and last-mile connectivity. This structural weakness exacerbates the impact of climate variability on food production and prices.

Various Procurement Mechanisms of Crops

The Government of India employs multiple mechanisms to procure crops from farmers, primarily to ensure food security through the PDS and to provide price support to farmers.

• Centralised Procurement Scheme: This is the traditional model where the Food Corporation of India (FCI), along with state government agencies, directly procures crops (mainly wheat and paddy) from farmers at the Minimum Support Price (MSP). The FCI is then responsible for the storage, transportation, and allocation of these food grains to states for distribution through the PDS.

• Decentralised Procurement (DCP) Scheme: Introduced in 1997-98, this scheme allows state governments themselves to procure, store, and distribute food grains within the state. The central government bears the entire expenditure incurred by the state governments and provides the subsidy. This system was designed to enhance efficiency, reduce transportation costs, and encourage the procurement of local varieties of grains that suit local tastes.

• Price Support Scheme (PSS): This scheme is for the procurement of pulses, oilseeds, and copra. It is operationalized when market prices fall below the MSP. State governments must notify the failure of market prices, after which central nodal agencies like NAFED (National Agricultural Cooperative Marketing Federation of India) will procure up to 25% of the state’s production of that commodity at the MSP.

• Market Intervention Scheme (MIS): This is an ad-hoc scheme implemented for perishable horticultural commodities that are not covered under the MSP. It is initiated at the request of a state government to protect growers from making distress sales when prices fall sharply. The losses, if any, are shared between the central and state governments, typically on a 50:50 basis (75:25 for North-Eastern states).

• Price Stabilization Fund (PSF): Established in 2014-15, the PSF is a dedicated fund used to tackle extreme price volatility in selected agri-horticultural commodities. It involves procuring these commodities directly from farmers or through imports to build a strategic buffer stock, which is then released into the market to cool down prices. The commodities currently notified under this scheme are Onion, Potato, Tomato, and Pulses. The fund provides interest-free loans to central and state agencies to undertake these procurement and distribution activities.

NABARD

The National Bank for Agriculture and Rural Development (NABARD) is the apex development financial institution in India for the rural sector.

• Genesis and Mandate: NABARD was established on July 12, 1982, through the NABARD Act of 1981. Its creation was based on the recommendations of the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD), chaired by Shri B. Sivaraman. It was formed by amalgamating the Agricultural Credit Department (ACD) and Rural Planning and Credit Cell (RPCC) of the Reserve Bank of India, and the entire undertakings of the Agricultural Refinance and Development Corporation (ARDC).
• Administrative Structure: Though it was initially a joint holding of the RBI and the Government of India, it is now wholly owned by the Government of India and is administered by the Ministry of Finance.
• Vision and Mission: Its vision is to be the “Development Bank of the nation for fostering rural prosperity.” Its mission is to “promote sustainable and equitable agriculture and rural development through participative financial and non-financial interventions.”
• Key Initiatives and Functions:
  • Promotion and Development: NABARD manages several crucial funds for rural development. The Rural Infrastructure Development Fund (RIDF), created in 1995, has been a cornerstone for financing rural infrastructure projects. Other key interventions include the Watershed Development Fund and the Tribal Development Fund, under which the ‘Wadi’ model (promoting small orchards for tribal families) has been a notable success.
  • Refinancing: A core function of NABARD is to provide refinance facilities to the entire rural credit system, including Commercial Banks, Regional Rural Banks (RRBs), and Cooperative Banks, for their lending activities in agriculture and rural development.
  • Supervision: NABARD is entrusted with the statutory responsibility of supervising Rural Cooperative Banks (RCBs) and Regional Rural Banks (RRBs) to ensure their financial health and sound functioning.

Semiconductor Industry in India

India is making a strategic push to establish itself as a significant player in the global semiconductor value chain, moving beyond its existing strengths in design.

• India’s Semiconductor Market: The domestic market for semiconductors is growing rapidly, driven by the electronics manufacturing and digital economy boom. Projections indicate the market could reach approximately $64 billion by 2026. While India has a strong ecosystem for semiconductor design, with nearly 2,000 chips being designed annually and a significant R&D revenue generation, it has a negligible presence in commercial semiconductor manufacturing or ‘fabrication’ (fabs).

• Modified SEMICON India Programme: To address this manufacturing gap, the Ministry of Electronics and Information Technology (MeitY) launched this comprehensive program in 2021.

  • Objective: The program aims to create a robust semiconductor and display manufacturing ecosystem in India by providing significant and attractive incentive support to companies.
  • Scope: It covers various parts of the value chain, including Silicon Semiconductor Fabs, Display Fabs, Compound Semiconductors/Silicon Photonics/Sensors Fabs, and Semiconductor Design (through the Design Linked Incentive or DLI scheme).
  • Support: The scheme offers substantial fiscal support, such as up to 50% of the project cost for setting up silicon fabs, and provides support for a period of six years.
  • Nodal Agency: The implementation of the program is spearheaded by the India Semiconductor Mission (ISM), which has been established as a specialized and independent business division within the Digital India Corporation, under MeitY.

International Financial Services Centre (IFSC)

An IFSC serves as a jurisdiction that provides financial services to non-residents in a foreign currency, operating as a hub for international financial activities.

• Regulatory Framework for Listing: Historically, Indian companies were not permitted to list their equity shares directly on foreign stock exchanges without first listing on a domestic exchange. However, the Companies Act was amended in 2020 to create a provision allowing for such direct listings, a move aimed at providing Indian firms with better access to global capital.

• Existing Routes for Foreign Capital: Prior to the direct listing provision, Indian companies raised capital from international markets primarily through Depository Receipts (DRs).

  • Depository Receipt (DR): This is a negotiable financial instrument issued by a depository bank that represents a certain number of publicly-traded shares of a foreign company. It allows investors to hold shares in foreign companies without needing to trade on the local market.
  • American Depository Receipts (ADR): These are DRs denominated in US dollars and traded on stock exchanges in the United States, such as the NYSE or NASDAQ.
  • Global Depository Receipts (GDR): These are DRs traded on stock exchanges outside the US, most commonly in Europe (e.g., London or Luxembourg Stock Exchange).

• India’s IFSC: India’s first and only IFSC is the Gujarat International Finance Tec-City (GIFT City). To streamline regulation, the government established the International Financial Services Centres Authority (IFSCA) in 2020 as a unified regulator for all financial products, services, and institutions within IFSCs in India. Allowing direct listing on exchanges within GIFT IFSC is a key step in developing it as a competitive global financial center.

Transfer Pricing

Transfer pricing is a crucial area of international taxation, dealing with the pricing of transactions between related entities.

• Definition and Purpose: It is an accounting practice that sets the prices for goods, services, and intangible assets exchanged between different divisions, subsidiaries, or affiliates of the same multinational enterprise. While necessary for internal accounting, companies can manipulate these prices to shift profits from high-tax jurisdictions to low-tax jurisdictions, thereby reducing their overall corporate tax liability. This practice is a key component of what the OECD terms Base Erosion and Profit Shifting (BEPS).

• The Arm’s Length Principle (ALP): To combat tax avoidance, tax authorities worldwide, including India, use the Arm’s Length Principle. This internationally accepted standard requires that the price charged for a transaction between related parties must be the same as the price that would have been charged if the parties were independent and unrelated.

• Legal Framework and Recent Judicial Pronouncement:

  • In India, transfer pricing provisions are detailed in Chapter X of the Income-tax Act, 1961. The determination of the Arm’s Length Price is done by the Assessing Officer, often with the assistance of a specialized Transfer Pricing Officer (TPO).
  • A significant judicial development occurred when the Supreme Court of India in 2023 set aside an earlier Karnataka High Court ruling. The apex court held that the determination of the ALP by the Income Tax Appellate Tribunal (ITAT) is not absolutely final. It can be subjected to judicial scrutiny by a High Court under Section 260A of the Income-tax Act if the tribunal’s finding is deemed ‘perverse’. A ‘perverse’ finding is one that is based on no evidence, ignores relevant evidence, or is made in contravention of legal provisions. This ruling clarifies that both taxpayers and the Indian Revenue Authorities can appeal an ITAT decision to a High Court on a question of law, ensuring a check on the tribunal’s powers.

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Prelims Pointers

• The eight core industries in India include: Coal, Crude Oil, Natural Gas, Refinery Products, Fertilisers, Steel, Cement, and Electricity.
• Urea accounts for more than two-thirds of India’s total fertilizer consumption.
• India imports 100% of its Potash (Muriate of Potash - MOP) requirement.
• Primary nutrients are Nitrogen (N), Phosphorus (P), and Potassium (K).
• Secondary nutrients include Calcium (Ca), Magnesium (Mg), and Sulphur (S).
• PM-PRANAM: Full form is PM Programme for Restoration, Awareness Generation, Nourishment and Amelioration of Mother-Earth.
• GOBAR-Dhan: Full form is Galvanizing Organic Bio-Agro Resources-Dhan. Launched in 2018 under Swachh Bharat Mission (Grameen).
• Urea Gold: It is Urea coated with Sulphur.
• Under PM-PRANAM, 50% of fertilizer subsidy savings are given to the respective state as a grant.
• The grant under PM-PRANAM is to be used in a 70:30 ratio for asset creation and incentivizing stakeholders, respectively.
• The performance of states under PM-PRANAM is measured using data from the iFMS (Integrated Fertilizers Management System) dashboard.
• PACS: Full form is Primary Agricultural Credit Societies. They are part of a three-tier cooperative credit structure (PACS at village, DCCB at district, SCB at state level).
• Decentralised Procurement (DCP) scheme for food grains was introduced in 1997.
• Price Support Scheme (PSS) is for pulses and oilseeds, and procurement is capped at 25% of the state’s production. NAFED is a key implementing agency.
• Market Intervention Scheme (MIS) is for perishable horticultural crops not covered by MSP.
• Price Stabilization Fund (PSF) covers Onion, Potato, Tomato, and Pulses.
• NABARD was established in 1982 on the recommendation of the B. Sivaraman Committee.
• NABARD’s ownership is 100% with the Government of India, and it is administered by the Ministry of Finance.
• NABARD supervises Regional Rural Banks (RRBs) and Rural Cooperative Banks (RCBs).
• India Semiconductor Mission (ISM) is the nodal agency for the SEMICON India Programme.
• ISM is a business division within the Digital India Corporation.
• India’s first International Financial Services Centre (IFSC) is located in GIFT City, Gujarat.
• The unified regulator for IFSCs is the International Financial Services Centres Authority (IFSCA).
• ADR (American Depository Receipt) is traded on US stock exchanges.
• GDR (Global Depository Receipt) is traded on non-US exchanges, mainly in Europe.
• Transfer pricing regulations in India are contained in Chapter X of the Income-tax Act, 1961.
• The guiding principle for transfer pricing is the Arm’s Length Principle (ALP).

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Mains Insights

Fertiliser Sector and Subsidy Reforms

1. Policy Paradox and its Consequences:
   • Cause: The government’s policy of keeping urea prices low through subsidies while decontrolling P&K fertilizers under the Nutrient Based Subsidy (NBS) regime has created a significant price distortion.
   • Effect: This has led to the overuse of urea and the underuse of P&K fertilizers, resulting in a skewed N:P:K ratio. This has severe long-term consequences, including deteriorating soil health, declining crop response to fertilizers, and contamination of groundwater. It also imposes a massive and ever-increasing fiscal burden on the central government.
2. Shift towards Sustainable Agriculture:
   • Schemes like PM-PRANAM represent a paradigm shift from a subsidy-based support system to an incentive-based one. By rewarding states for reducing chemical fertilizer use, it employs cooperative federalism to achieve the national goal of sustainable agriculture.
   • The focus on GOBAR-Dhan and MDA for organic fertilizers signifies a push towards a circular economy, aiming to convert agricultural waste into a valuable resource, thereby reducing dependence on chemical inputs and improving rural sanitation.
3. Technological Solutions vs. Policy Reforms:
   • The introduction of Neem-coated Urea and now Sulphur-coated Urea (Urea Gold) are technological fixes to improve Nutrient Use Efficiency (NUE). While beneficial, they only address the symptoms.
   • A comprehensive solution requires deeper policy reforms, such as bringing urea under the NBS regime to rationalize its price, and a wider rollout of direct cash transfers to farmers, which would empower them to choose the appropriate mix of fertilizers based on soil health tests.

Food Procurement, Storage, and Inflation Management

1. The MSP-Procurement Dilemma:
   • Successes: The MSP-centric procurement system has been the backbone of India’s food security, ensuring a buffer stock for the PDS and preventing distress sales for farmers of rice and wheat.
   • Failures and Debates: The system is criticized for being geographically concentrated ( benefiting only a few states), crop-biased (neglecting pulses, oilseeds, and millets), and fiscally unsustainable. The Shanta Kumar Committee (2015) recommended major reforms to FCI and a shift towards cash transfers. The ongoing debate on legalizing MSP highlights the deep-rooted complexities and political sensitivities involved.
2. Decentralization as a Solution:
   • The plan to use PACS for decentralized grain storage is a strategic move to address the inefficiencies of the centralized FCI model.
   • Potential Benefits: Reduced storage and transportation costs, minimized post-harvest losses, quicker procurement, and empowerment of local cooperative institutions.
   • Challenges: The financial health and governance capacity of PACS vary significantly across states. Successful implementation will require substantial investment in capacity building, technology adoption (computerization), and robust oversight mechanisms.
3. Inflation Management: Consumer vs. Producer Interests:
   • The government’s frequent use of blunt instruments like export bans and stock limits to control food inflation highlights a policy bias towards consumers, often at the expense of farmers’ incomes, as pointed out by institutions like ICRIER.
   • Long-term Strategy: A sustainable approach to managing food inflation must focus on supply-side solutions. This includes investing in climate-resilient agriculture, expanding micro-irrigation, building efficient farm-to-fork supply chains (e.g., via FPOs), and using market-based instruments like the Price Stabilization Fund (PSF) more effectively and transparently.

Strategic Sectors and Economic Governance

1. Semiconductors: Geopolitics and ‘Make in India’:
   • Strategic Imperative: India’s push for semiconductor manufacturing is driven by geopolitical realities, particularly the need to de-risk supply chains from their concentration in East Asia (Taiwan, South Korea, China) and to bolster national security.
   • Challenges to Execution: Establishing a semiconductor fab is incredibly capital-intensive and requires a mature ecosystem with uninterrupted power, ultra-pure water, and a highly skilled workforce. While the SEMICON India Programme offers strong incentives, long-term success will depend on parallel investments in R&D, academia-industry linkages, and skill development.
2. Transfer Pricing and Tax Certainty:
   • Balancing Act: The regulation of transfer pricing is a tightrope walk between preventing tax avoidance by MNCs and providing a stable, predictable tax regime to attract foreign investment.
   • Impact of SC Ruling: The Supreme Court’s decision that an ITAT ruling on ALP can be challenged if ‘perverse’ adds a layer of judicial oversight. While it may increase litigation in the short term, it also ensures that decisions are legally sound and evidence-based, potentially enhancing fairness and legal certainty in the long run for both taxpayers and the revenue department. This is crucial for improving India’s ‘Ease of Doing Business’ perception.