DEVELOPMENT BANK

Introduction:

Development banks are special industrial financing institutions. These banks are mostly set up after World War II in both developed and underdeveloped countries. Development banks do not mobilize savings like other banks but invest the resources in a productive manner. These banks make significant contribution to industrial development.

Meaning:

Development Banks are the institutions engaged in the promotion and development of industry, agriculture and other key sectors.A development bank is an institution which takes up the job of developing industrial enterprises from its inception to completion.

Definition:

D.M.Mithani states that, “A development bank may be defined as a financial institution concerned with providing all types of financial assistance (medium as well as long term ) to business units. 

William Diamond and Shirley Bosky consider industrial finance and development corporations as ‘development banks’ Fundamentally a development bank is a term lending institution.

Development bank is essentially a multi-purpose financial institution with a broad development outlook. A development bank may, thus, be defined as a financial institution concerned with providing all types of financial assistance (medium as well as long term) to business units, in the form of loans, underwriting, investment and guarantee operations, and promotional activities — economic development in general, and industrial development, in particular.

In short, a development bank is a development- oriented bank.

Features:

·          It is a specialized financial institution which provides medium term and long- term lending facilities.

·   It is multipurpose financial institution because besides providing financial help,it undertakes promotional activities also.

·         Development banks provide financial assistance to both public and private institutions.

·        The role of a development bank is of gap filler.

·        Development banks accelerate the rate of growth through helping in industrialization in specific and economic development in general.

·        The objective of development bank is to serve  the public interest rather than earning profits.

·         Development banks react to socio-economic needs of development. 

Need of development banks:

• ·         Lay foundations for industrialization.
• ·         Meet capital needs.
• ·         Need for promotional activities.
• ·         Help small and medium sectors.

Functions of development banks:

There are so many functions which are perform by the development bank.They can be explain with the help of the following table

Now let's discuss each important function of development banks one by one.

1. Small Scale Industries (SSI)

Development banks play an important role in the promotion and development of the small-scale sector. Government of India (GOI) started Small industries Development Bank of India (SIDBI) to provide medium and long-term loans to Small Scale Industries (SSI) units. SIDBI provides direct project finance, and equipment finance to SSI units. It also refinances banks and financial institutions that provide seed capital, equipment finance, etc., to SSI units.

2. Development of Housing Sector

Development banks provide finance for the development of the housing sector. GOI started the National Housing Bank (NHB) in 1988.

NHB promotes the housing sector in the following ways:

·       It promotes and develops housing and financial institutions.

·       It refinances banks and financial institutions that provide credit to the housing sector.

3. Large Scale Industries (LSI)

Development banks promote and develop large-scale industries (LSI). Development financial institutions like IDBI, IFCI, etc., provide medium and long-term finance to the corporate sector. They provide merchant banking services, such as preparing project reports, doing feasibility studies, advising on location of a project, and so on.

4. Agriculture and Rural Development

Development banks like National Bank for Agriculture & Rural Development (NABARD) helps in the development of agriculture. NABARD started in 1982 to provide refinance to banks, which provide credit to the agriculture sector and also for rural development activities. It coordinates the working of all financial institutions that provide credit to agriculture and rural development. It also provides training to agricultural banks and helps to conduct agricultural research.

5. Enhance Foreign Trade

Development banks help to promote foreign trade. Government of India started Export-Import Bank of India (EXIM Bank) in 1982 to provide medium and long-term loans to exporters and importers from India. It provides Overseas Buyers Credit to buy Indian capital goods. It also encourages abroad banks to provide finance to the buyers in their country to buy capital goods from India.

6. Review of Sick Units

Development banks help to revive (cure) sick-units. Government of India (GOI) started Industrial investment Bank of India (IIBI) to help sick units.

IIBI is the main credit and reconstruction institution for revival of sick units. It facilitates modernization, restructuring and diversification of sick-units by providing credit and other services.

7. Entrepreneurship Development

Many development banks facilitate entrepreneurship development. NABARD, State Industrial Development Banks and State Finance Corporations provide training to entrepreneurs in developing leadership and business management skills. They conduct seminars and workshops for the benefit of entrepreneurs.

8. Regional Development

Development banks facilitate rural and regional development. They provide finance for starting companies in backward areas. They also help the companies in project management in such less-developed areas.

9. Contribution to Capital Markets

Development banks contribute the growth of capital markets. They invest in equity shares and debentures of various companies listed in India. They also invest in mutual funds and facilitate the growth of capital markets in India.

v   Role of development banks in financial sector

Financial institutions provide means and mechanism of transferring resources from those who have an excess of income over expenditure to those who can make productive use of the same. The commercial banks and investment institutions mobilize savings of people and channel them into productive uses. Financial institutions provide all type of assistant required infrastructural facilities Institutions e p economic persons who can take the development in the following ways. The underdeveloped countries have low levels of capital formation. Due to low incomes, people are not able to save sufficient funds which are needed for sensing up new units and also for expansion diversification and modernization of existing units. The persons who have the capability of starting a business but does not have requisite help approach   to financial institutions for help. These institutions help large number of persons for taking up some industrial activity. The addition of new industrial units and increasing the activities of existing units will certainly help in accelerating the pace of economic development. Financial institutions have large inventible funds which are used for productive purposes

2. Infrastructural Facilities

Economic development of a country is linked to the availability of infrastructural facilities. There is a need for roads, water, sewage, communication facilities, electricity etc. Financial institutions prepare their investment policies by keeping national priorities in major and the institutions invest in those aim is which can help in increasing the development of the country. Indian industry and agriculture is facing acute shortage of electricity. All India  institutions are giving priority to invest funds in projects generating electricity. These investments will certainly increase the availability of electricity. Small entrepreneurs cannot spare funds for creating infrastructural facilities. To overcome this problem, institutions at state level are developing industrial estates and provide sheds, having all facilities at easy instalments. So financial institutions are helping in the creation of all those facilities which are essential for the development of a country

3. Promotional Activities

An entrepreneur faces many problems while setting up a new unit. One has to undertake a feasibility report, prepare project report, complete registration formalities, seek approval from various agencies etc. All these things require time, money and energy. Some people are not able to undertake this exercise or some do not even take initiative. Financial institutions are the expense and manpower resources for undertaking the exercise of starting a new unit. So these institutions take up this work on behalf of entrepreneurs. Some units may be set up jointly with some financial institutions and in that case the formalities are completed collectively. Some units may not have come up had they not received promotional help from financial institutions. The promotional role of financial institutions is helpful in increasing the development of a country.

4. Development of Backward Areas

Some areas remain neglected because facilities needed for setting up new units are not available here. The entrepreneurs set up new units at those places which are already developed. It causes imbalance in economic development of some areas. In order to help the development of backward areas, financial institutions provide special assistance to entrepreneurs for setting up new units in these areas. IDBI, IFCI, ICICI give priority in giving assistance to units set up in backward areas and even charge lower interest rates on lending. Such efforts certainly encourage entrepreneurs to set up new units in backward areas. The industrial units in these areas improve basic amenities and create employment opportunities. These measures will certainly help in increasing the economic development of backward areas.

5. Planned Development

Financial institutions help in planned development of the economy. Different institutions earmark their spheres of activities so that every business activity is helped. Some institutions like SIDBI, SFCI’s especially help small scale sector while IFCI and SIDC’s finance large scale sector or extend loans above a certain limit. Some institutions help different segments like foreign trade, tourism etc. In this way financial institutions devise their roles and help the development in their own way. Financial institutions also follow the development priorities set by central and state governments. They give preference to those industrial activities which have been specified in industrial policy statements and in five year plans. Financial institutions help in the overall development of the country

6. Accelerating Industrialization

Economic development of a country is linked to the level of industrialization there. The setting up of more industrial units will generate direct and indirect employment, make available goods and services in the country and help in increasing the standard of living. Financial institutions provide requisite financial, managerial, technical help for setting up new units. In some areas private entrepreneurs do not want to risk their funds or gestation period His long but the industries are needed for the development of the area. Financial institutions provide sufficient funds for their development. Since 1947, financial institutions have played a key role in accelerating the pace of industrialization. The country has progressed in almost all areas of economic development.

7. Employment Generation

Financial institutions have helped both direct and indirect employment generation. They have employed many persons to man their offices. Besides office staff, institutions need the services of experts which help them in finalizing lending proposals. These institutions help in creating employment by financing new and existing industrial units. They also help in creating employment opportunities in backward areas by encouraging the setting up of units in those areas, thus financial institutions have helped in creating new and better job opportunities.

Development banks in India

The foreign rulers in India did not take much interest in the industrial development of the country. The recommendation for setting up industrial financing institutions was made in 1931 by Central Banking Enquiry Committee but no concrete steps were taken. In 1949, Reserve Bank had undertaken a detailed study to find out the need for specialized institutions. It was in 1948, that the first development bank i.e. Industrial Finance Corporation of India (IFCI) was established. To cater the needs of the small and medium enterprises, in 1951, Parliament passed State Financial Corporation Act. Under this Act, state governments could establish financial corporation’s for their respective regions. After this, National Industrial Development Corporation (NIDC) was established which could not serve the ambitious role assigned to it  and restricted itself to modernization and rehabilitation of cotton and jute textile industryIn 1955, The Industrial Credit and Investment Corporation of India Ltd.(ICICI) was established as a joint stock company. It provides term loans and takes an active part in the underwriting of and direct investments in the share of industrial units. Then in 1958, Refinance Corporation for Industry (RCI) was set up by the Reserve Bank of India. In 1964, IDBI was set up as an apex institution in the area of industrial finance, RCI was merged with IDBI. IDBI was a wholly owned subsidiary of RBI and was expected to co-ordinate the activities of the institutions engaged in financing, promoting, or developing industry.

BAUMOL’S SALES MAXIMISATION

W.J. BAUMOL’S SALES MAXIMISATION

(Without Advertisement)

Baumol’s findings of oligopoly firms in America reveal that they follow the sales maximisation objective. According to Baumol, with the separation of ownership and control in Morden Corporation, managers seek prestige and higher salaries by trying to expand company sales even at the expense of profits. Being a consultant to a number of firms, baumol observes that when asked how their business went last year, the business managers often respond, ‘’our sales were up to 3 million $’’. Thus, according to baumol, revenue or sales maximisation rather than profit maximisation is consistent with the actual behavior of firms.

Baumol cites evidence of suggest that shot-run revenue maximization may be consistent with the long-run profit maximization. But sales maximization is regarded as the short-run and long-run goal of management. Sales maximization is not only a means but an end in itself. He gives a number of arguments is support of his theory. According to him, a firm attaches great importance to the magnitude of sales and is much concerned about declining sales. If sales of firm are declining, banks, creditors and the capital market are not prepared to provide finance to it. Its own distributors and dealers might stop taking interest in it. Consumers might not buy its products because of its unpopularity. But if sales are large, the size of the firms expands which, in turn larger profits.

Baumol’s model is illustrated in fig. 1 where TC is the total cost curve, TR is the total revenue curve, TP is total production curve and MP is the minimum profit constraint line. The firm maximise its profits at OQ level of the output corresponding to the highest point B on the TP curve. But the aim of the firm is not maximize the profit but it want to maximize the sales. Its sales maximization output is OK where the total revenue KL is the maximum at the highest point of the TR. This sales maximization output OK is higher than the profit maximization output OQ. But sales maximization is subject to minimum profit constraint.

(Sales maximization model without advertisement.)

Suppose the minimum profit level of the firm is represented by the line MP. The output OK will not maximize sales as the minimum profit OM are not being covered by total profit KS. For sales maximization, the firm should produce profit but also gives the highest total revenue consistent with it. This level is represented by the OD level of output where the minimum profit is DC (=OM) are consistent with DE amount of total revenue at the price DE/OD, (I.e., total revenue /total output).

Criticism:-

The sales maximization objective of the firms has been criticised on a number of point. First, Rosenberg has criticised the use of the profit constraint for maximizing sales. He has shown that it is difficult to specify exactly the relevant profit constraint for a firm, and choose the sales maximization and minimum profit constrain in Baumol’s analysis. Second, if expenditure on advertising is introduced in a Baumol’s theory, the likelihood of sales maximization is increased. But this view point is not realistic because the expenditure on advertising increase or decrease with the rise of fall in output. Third, the objective of sales maximization subject to profit constraint implies that ‘’the firm will not make any sacrifice in sales no matter how large an increment in wealth would thereby be achievable.’’ Despite these criticisms, the sales maximization is an important objective being pursued by business firms.   

merchant banking

Merchant Banking Meaning

Meaning:

Merchant Banking is a combination of Banking and consultancy services. It provides consultancy to its clients for financial, marketing, managerial and legal matters. Consultancy means to provide advice, guidance and service for a fee. It helps a businessman to start a business. It helps to raise (collect) finance. It helps to expand and modernize the business. It helps in restructuring of a business. It helps to revive sick business units. It also helps companies to register, buy and sell shares at the stock exchange.

 MERCHANT BANKS DO TWO TYPES OF WORKS.

1 BANKING SERVICES-

IT HELP TO BUSINESSMEN TO START  A BUSINESS AND HELP TO COLLECT MONEY.

2 CONSULTANCY SERVICES- 

IT PROVIDES CONSULTANCY TO ITS CLIENTS FOR FINANCE, MARKETING ETC.

In short, merchant banking provides a wide range of services for starting until running a business. It acts as Financial Engineer for a business.

Merchant banking was first started in India in 1967 by Grind lays Bank. It has made rapid progress since 1970.

Functions of Merchant Banking

The functions of merchant banking are listed as follows:

1.       Raising Finance for Clients: Merchant Banking helps its clients to raise finance through issue of shares, debentures, bank loans, etc. It helps its clients to raise finance from the domestic and international market. This finance is used for starting a new business or project or for modernization or expansion of the business.

2.       Broker in Stock Exchange: Merchant bankers act as brokers in the stock exchange. They buy and sell shares on behalf of their clients. They conduct research on equity shares. They also advise their clients about which shares to buy, when to buy, how much to buy and when to sell. Large brokers, Mutual Funds, Venture capital companies and Investment Banks offer merchant banking services.

3.       Project Management: Merchant bankers help their clients in the many ways. For e.g. advising about location of a project, preparing a project report, conducting feasibility studies, making a plan for financing the project, finding out sources of finance, advising about concessions and incentives from the government.

4.       Advice on Expansion and Modernization: Merchant bankers give advice for expansion and modernization of the business units. They give expert advice on mergers and amalgamations, acquisition and takeovers, diversification of business, foreign collaborations and joint-ventures, technology up-gradation, etc.

5.       Managing Public Issue of Companies:Merchant bank advice and manage the public issue of companies. They provide following services:

v  Advise on the timing of the public issue.

v  Advise on the size and price of the issue.

v  Acting as manager to the issue, and helping in accepting applications and allotment of securities.

v  Help in appointing underwriters and brokers to the issue.

v  Listing of shares on the stock exchange, etc.

6.       Handling Government Consent for Industrial Projects:A businessman has to get government permission for starting of the project. Similarly, a company requires permission for expansion or modernization activities. For this, many formalities have to be completed. Merchant banks do all this work for their clients.

7.       Special Assistance to Small Companies and Entrepreneurs:Merchant banks advise small companies about business opportunities, government policies, incentives and concessions available. It also helps them to take advantage of these opportunities, concessions, etc.

8.       Services to Public Sector Units: Merchant banks offer many services to public sector units and public utilities. They help in raising long-term capital, marketing of securities, foreign collaborations and arranging long-term finance from term lending institutions.

9.       Revival of Sick Industrial Units:Merchant banks help to revive (cure) sick industrial units. It negotiates with different agencies like banks, term lending institutions, and BIFR (Board for Industrial and Financial Reconstruction). It also plans and executes the full revival package.

10.   Portfolio Management: A merchant bank manages the portfolios (investments) of its clients. This makes investments safe, liquid and profitable for the client. It offers expert guidance to its clients for taking investment decisions.

11.   Corporate Restructuring: It includes mergers or acquisitions of existing business units, sale of existing unit or disinvestment. This requires proper negotiations, preparation of documents and completion of legal formalities. Merchant bankers offer all these services to their clients.

12.   Money Market Operation : Merchant bankers deal with and underwrite short-term money market instruments, such as:

v  Government Bonds.

v  Certificate of deposit issued by banks and financial institutions.

v  Commercial paper issued by large corporate firms.

v  Treasury bills issued by the Government (Here in India by RBI).

13.   Leasing Services : Merchant bankers also help in leasing services. Lease is a contract between the lessor and lessee, whereby the lessor allows the use of his specific asset such as equipment by the lessee for a certain period. The lessor charges a fee called rentals.

14.   Management of Interest and Dividend :Merchant bankers help their clients in the management of interest on debentures / loans, and dividend on shares. They also advise their client about the timing (interim / yearly) and rate of dividend.

DEMONETIZATION

DEMONETIZATION

INTRODUCTION:-

There is a background to the current decision of demonetization of Rs 500 and Rs 1000 rupee notes. The government has taken few steps in this direction much before its November 8, 2016 announcement. As a first step the government had urged people to create bank accounts under Jan Dhan Yojana. They were asked to deposit all the money in their Jan Dhan accounts and do their future transaction through banking methods only. The second step that the government initiated was a tax declaration of the income and had given October 30, 2016 deadline for this purpose. Through this method, the government was able to mop up a huge amount of undeclared income.

However, there were many who still hoarded the black money, and in order to tackle them; the government announced the demonetization of 500 and 1000 currency notes.

The sudden announcement by the govt on the night of 8^thNov. 2016 that currency of the denomination of Rs. 500 and Rs 1000 notes would cease to be a legal tender stunned the country. Doubts and confusion started creating in the minds of various sections of the people as regards the effect of demonetisation.

MEANING

Demonetization of currency means discontinuityof the particular currency from circulation and replacing it with a new currency. In the current context it is the banning of the 500 and 1000 denomination currency notes as a legal tender. Demonetisation as is globally defined is a step to withdraw certain note from circulation in order and also expose the people who are indulges in hording block money and tax evasion.

History and background

1. The sudden move to demonetize Rs 500 and Rs 1,000 currency notes is not new. Rs 1,000 and higher denomination notes were first demonetized in January 1946 and again in 1978.
2. The highest denomination note ever printed by the Reserve Bank of India was the Rs 10,000 note in 1938 and again in 1954. But these notes were demonetized in January 1946 and again in January 1978, according to RBI data.

3.     Rs 1,000 and Rs 10,000 bank notes were in circulation prior to January 1946. Higher denomination banknotes of Rs 1,000, Rs 5,000 and Rs 10,000 were reintroduced in 1954 and all of them were demonetized in January 1978.

4. The Rs 1,000 note made a comeback in November 2000. Rs 500 note came into circulation in October 1987. The move was then justified as attempt to contain the volume of banknotes in circulation due to inflation. However, this is the first time that Rs 2,000 currency note is being introduced.

5.      While announcing currently circulated Rs 500 and Rs 1,000 notes as invalid from midnight 8 Nov, Prime Minister Shri Narendra Modi said new Rs 500 note and a Rs. 2,000 denomination banknote will be introduced from November 10.

6. Bank notes in Ashoka Pillar watermark series in Rs 10 denomination were issued between 1967 and 1992, Rs 20 in 1972 and 1975, Rs 50 in 1975 and 1981 and Rs 100 between 1967-1979.
7. The banknotes issued during this period contained the symbols representing science and technology, progress and orientation to Indian art forms.
8. In the year 1980, the legend Satyameva Jayate — ‘truth alone shall prevail’ — was incorporated under the national emblem for the first time.
9. In October 1987, Rs 500 banknote was introduced with the portrait of Mahatma Gandhi and Ashoka Pillar watermark. Mahatma Gandhi (MG) series banknotes – 1996 were issued in the denominations of Rs 5, (introduced in November 2001), Rs 10 (June 1996), Rs 20 (August 2001), Rs 50 (March 1997), Rs 100 (June 1996), Rs 500 (October 1997) and Rs 1,000 (November 2000).
10. The Mahatma Gandhi Series – 2005 bank notes were issued in the denomination of Rs 10, Rs 20, Rs 50, Rs 100, Rs 500 and Rs 1,000 and contained some additional/new security features as compared to the 1996 MG series.
11. The Rs 50 and Rs 100 banknotes were issued in August 2005, followed by Rs 500 and Rs 1,000 denominations in October 2005 and Rs 10 and Rs 20 in April 2006 and August 2006, respectively.

Even thought this move may be now to the younger generation. As regards the demonetisation in India recently, the objective of the govt. seems to be Nobel although some hue and cry by certain political parties was the headline for a few days. But the question arises    will the government achieves its objectives?

OBJECTIVE

The government’s stated objective behind the demonetization policy are as follows;

1.     It is an attempt to make India corruption free.

2.     It is done to curb black money,

3.     To control escalating price rise,

4.     To stop funds flow to illegal activity,

5.     To curve terrorism, curruption, flow of fake currency

6.     To make people accountable for every rupee they possess and pay income tax return.     Finally, it is an attempt to make a cashless society and create a Digital India.

The demonetization policy is being seen as a financial reform in the country but this decision is fraught with its own merits and demerits.

Merits of Demonetisation

The demonetization policy will help India to become corruption-free. Those indulging in taking bribe will refrain from corrupt practices as it will be hard for them to keep their unaccounted cash. This move will help the government to track the black money. Those individuals who have unaccounted cash are now required to show income and submit PAN for any valid financial transactions. The government can get income tax return for the income on which tax has not been paid. The move will stop funding to the unlawful activities that are thriving due to unaccounted cash flow. Banning high-value currency will rein in criminal activities like terrorism etc. The ban on high value currency will also curb the menace of money laundering. Now such activity can easily be tracked and income tax department can catch such people who are in the business of money laundering. This move will stop the circulation of fake currency. Most of the fake currency put in circulation is of the high value notes and the banning of 500 and 1000 notes will eliminate the circulation of fake currency. This move has generated interest among those people who had opened Jan Dhan accounts under the Prime Minister’s Jan Dhan Yojana. They can now deposit their cash under this scheme and this money can be used for the developmental activity of the country. The demonetization policy will force people to pay income tax returns. Most of the people who have been hiding their income are now forced to come forward to declare their income and pay tax on the same. Even though deposits up to Rs 2.5 lakh will not come under Income tax scrutiny, individuals are required to submit PAN for any deposit of above Rs 50,000 in cash. This will help the income tax department to track individuals with high denominations currency.

The ultimate objective is to make India a cashless society. All the monetary transaction has to be through the banking methods and individuals have to be accountable for each penny they possess. It is a giant step towards the dream of making a digital India. If these are the merits, there are demerits of this policy as well.

Demerits of Demonetisation

The announcement of the demonization of the currency has caused huge inconvenience to the people. They are running to the banks to exchange, deposit or withdraw notes. The sudden announcement has made the situation become chaotic. Tempers are running high among the masses as there is a delay in the circulation of new currency. It has deeply affected business. Due to the cash crunch, the entire economy has been made to come to a standstill. Many poor daily wage workers are left with no jobs and their daily income has stopped because employers are unable to pay their daily wage. The government is finding it hard to implement this policy. It has to bear the cost of printing of the new currency notes. It is also finding it difficult to put new currency into circulation. The 2000 rupees note is a burden on the people as no one likes to do transaction with such high value currency. Some critics think it will only help people to use black money more easily in future.

Further, many people have clandestinely discarded the demonetized currency notes and this is a loss to the country’s economy.

Conclusion

Economists are busy in listing out many more merits and demerit of this policy. The government is saying that there are only advantages of demonetization policy and this will be seen in the long term. Former Prime Minister Man Mohan Singh who is a noted economist, former RBI governor and former Finance Minister of the country, dubs the demonetization move as an 'organized loot and legalized plunder'.

However, if we compare the merits verses demerits, it will be safe to conclude that the former outweighs the latter.

Even though there is suffering and agony among the masses right at the moment but the forecast is that its benefits will be seen in the long run. The government is taking all the necessary steps and actions to meet the currency demand and soon the trial and tribulations of the people will be over with the smooth flow of the new currency. The impact of demonetisation and the resultant cashless and less cash transactions has always had a healthy effect on the economy of any country. Whether a developed or a developing economy. As regard India which is a developing country. Its good effects on the economy may not be visible in the beginning but in the long run it will definitely give a boost to the economy.

Land of festivals.....

India is well known all over the world for its cultural and traditional festivals. India has many cultures and religions. there is a hardly a any month when they do not celebrate. India has full of diversity in the religions, languages, cultures and castes. India is divided into various states and each and every state have its unique culture, tradition and history. People from each religion have their own cultural and traditional festivals. some festivals are celebrated on regional basis and some are celebrated all over the entire nation. each and every festival is celebrated uniquely in different ways according to its rituals beliefs and its significant history behind. each festival has its own history, legend and significance of celebration. Indian festival not only celebrated in India but also outside India by the Indian origin people with the immense passion.

 India have unity in diversity as it contains people of various religions like Hindu, Muslim, Sikh, Jain, Christian and etc.
According to the religions and ritual, festivals have been categorized into following categories.

Hindu Festivals

There are lots of cultural and traditional festivals celebrated by the people of Hindu religion all over the world. Hinduism is considered as the oldest organized religion of the world as well as counted as the third largest religion of the world. Each Hindu festival celebration has a special ritual to be celebrated in that way by the act of worship, offerings to deities, offering Ganga Jal, fasting, bathing in Ganga jal in early morning, feasting, Dan, Dakshina, Puja, Katha, Hoom, aarti and so many. All the people of Hindu religion celebrate their festivals by uniting together in community without any distinction of age, caste and gender.

The dates of the Hindu festivals are fixed according to the dates of the Hindu calendar, Some of the festivals of Hindu are celebrated as the historical mythology, some for seasonal changes and some for cleaning and keeping the environment safe. Some of the festivals celebrations are limited to the specific sects or Indian subcontinent regions.

Some Hindu festivals are as follows.

1. HOLI
2. DEWALI
3. MAKAR SANKRANTI 
4. RAM NAVAMI
5. BHAI DOOJ
6. NAVRTRA..     ETC

Muslim Festivals

All the people of Muslim religion enthusiastically celebrate their all the Islamic festivals all over the world. There are many religious festivals which they celebrate with great passion and dedication by following the date of their Islamic calendar. Some of the very important Islam festivals are Ramzan (Ramadan), Id-e-Milad, Muharram, Bakr-Id and etc which they celebrate in special ways by offering prayers in the mosques, feasting, fasting and wishing to each other. Islam was founded by the spiritualist Muhammad around the 7th century which has become the 2nd largest religion worldwide. The Islam has five most significant Pillars such as “Shahadah (Faith), Salah (Prayer), Zakah (Donate), Sawm (Fasting) and Hajj (Pilgrimage)”. 

Below is the list of all Muslim festivals:

1. BARAWAFT

1. ID-UL-FITR 

1. MUHARRAM..    ETC.

Sikh Festivals

As India is considered as the country of numerous religions, cultures and traditions that’s why it is known as having unity in diversity. People of Sikh religion have lots of unique and ritual festivals which they celebrate with full courage and enjoyment. They commemorate the lives of their 10 Sikh gurus including their teachings. Some Hindu festivals are also celebrated by the people of Sikh religion having different reasons of celebration.

All the worship at the festival in Sikhism is directed towards the holy book called “the Guru Granth Sahib” which was first compiled by the Sikh guru, Guru Nanak and later edited by the Sikh Guru, Arjan. The Guru Granth of the Sikh religion has the place of deity among people and taken out on a palanquin in the public processions while celebrating any Sikh festival. They involve lots of music and religious songs, readings from the holy book, holy songs, singing of gurbani while celebrating their festivals in order to attach with God.

 Below is the list of all Sikh festivals:

1. LOHRI
2. GURU GOVIND SINGH JAYNTI
3. GURU NANAK JAYNTI
4. GURU PURAB  ETC....

Jain Festivals

People from Jain religion have lots of rituals and religious ceremonies to be celebrated as the festival. Their rituals belong to the idol worships in various ways and festivals belong to the life events of Tirthankara which involves the purification of the soul. Their rituals are divided in two parts named Karya and Kriya. According to the Jain Svetambara there are six obligatory duties called Six Avashyakas which are “Chaturvishnati-stava: praising Tirthankaras, Kayotsarga: meditation, Pratikramana: expiation of past sins, Pratyakhyana: renunciation of anything, Samyika: practising serenity and meditation and Vandan: respecting teachers and ascetics”.

According to the Jain Digambara there are six duties which are “Dana: charity, Devapuja: worship of Tirthankaras, Guru-upashti: respecting teachers and ascetics, Sanyam: controlling self by following different rules, Swadhyaya: studying spiritual texts and Tapa: austerities” which has been involved as a fundamental ritual activities of the Jains. 

Below is the list of all Jain festivals:

1. DEEP DIWALI
2. MAHAVIR JAYNTI  ETC....

Christian Festivals

As India is a land of variety of cultures and ethnicity because of celebrating lots of colorful festivals by the people of different religions. People of the Christian religion celebrate their festivals like Christmas, Easter, Good Friday and etc with big enthusiasm and fun filled activities. People from other religions also become involve in the Christmas celebrations which proves the unity in diversity of India.

There are various famous places in India where the Christian festivals are celebrated such as Goa as most of the oldest and beautiful churches are there. They do feast, prayers and processions while celebrating their festivals.

 Below is the list of all Christian festivals:

1. GOOD FRIDAY
2. EASTER
3. CHRISTMAS    ETC...

Buddhist Festivals

People from Buddhist religion celebrate their festivals well connected to their Lord Buddha and the Bodhisattvas. It is considered that the Buddhist festivals were first started by the lord Buddha and He advised his followers to be in touch with each other to strengthen their bond. Buddhist has their own beliefs and rituals of celebrating historical festivals. The do worship of the historical objects while celebrating their festivals.

Their festivals become more religious, spiritual and intellectual which are not restricted to any service of the community. 

Below is the list of all the Buddhist festivals:

1. BUDDHA PURNIMA
2. LOSAR
3. ULLAMBAN.   ETC..

AN MANY MORE RELIGIONS AND RELIGIOUS FESTIVALS ARE CELEBRATED IN INDIA. ITS A SMALL LIST OF SOME OF THEM.

THANKS....