Chapter 23: Commerce

Introduction

Commerce education had a beginning in India way back in 1886 with the establishment of the first commercial school in Madras (now Chennai) by the trustees of pachiappa’s Charities. In 1895, the Government of India established a school of commerce in Calicut. Thereafter, the Presidency College in Calcutta started commerce classes in 1903 which eventually became the Government Commercial Institute. It provided full-time instruction of two-year duration somewhat equivalent to the secondary school leaving stage. The programme included, as compulsory subjects, English with special reference to commercial correspondence, letter drafting and précis writing, arithmetic, including commercial and mental arithmetic, and an Indian language, with shorthand, typewriting and book-keeping as optional subjects.

There were arrangements for evening classes as well in banking and accountancy and book-keeping, mercantile law, insurance, shorthand and typewriting. Commerce education at the university level was first introduced in 1913 when the Sydenham College of Commerce and Economics was established in Mumbai to offer a course in commerce. This college is still regarded as one of the most prestigious ones in the country. The study of commerce began at the Intermediate level. The course of study included elementary banking and accountancy, general commercial knowledge, shorthand and typewriting. The degree course had, in addition to English, some modicum of theoretical economics including money and exchange. But the main part of the course was devoted to subjects like Business Organisation, Secretarial Practice, Commercial Geography, Commercial Statistics and Mercantile Law. For the final year, there was a special subject which was generally Accountancy or Banking or Transport.

Educational Opportunities

The need for introducing Commerce as a third stream in the university was felt because of the steady growth of trade, commerce and industry, banking and insurance business. The need has since increased manifold. Now almost all the Junior/Intermediate Colleges and Higher Secondary schools have the provision for commerce course at the 10+2 level. More than one hundred universities have the Commerce Faculty/Departments which offer B.Com course through a large number of colleges affiliated to them. Some of these colleges exclusively deal with commerce education. M.Com courses are, by and large, conducted by the Commerce Faculties and Departments. In some universities, management departments continue to be a part of the Commerce Faculty. In fact, in the early seventies, when management education started being treated as an academic discipline in Indian universities, it were the Commerce Faculties which introduced the MBA programmes.

There are two categories of B.Com courses viz., B.Com and B.Com (Hons). B.Com (Hons) course generally concentrates on areas in business and economics. A third category B.Com (Computer or Computer Application) is now being introduced by some universities. Under the UGC scheme of vocationalisation at the first degree level, B.Com students can also opt for subjects like Corporate Accounting, Advertisement, Sales Promotion and Sales Management, Tourism & Travel Management, Foreign Trade Practice & Procedures, Office Management & Secretarial Practice, Tax procedures and Practices. B.Com course is also available in the distance learning mode both under the open (14 universities) and regular systems (42 universities). Under the open system, as already discussed elsewhere, any student who h as attained the age of 18 years can get admission even if he has not passed the 10+2 examination.

The curriculum of commerce education has undergone drastic changes since the forties. Keeping in view the requirements of business and industry, each university has tried to introduce some innovation in the syllabus by incorporating topics related to recent developments. Many universities now offer a some what puzzling variety of topics to choose from. There are the core topics such as Business Economics, Accountancy, Industrial Organisation and Management, Banking Theory Auditing Cost Accounting and Management Accounting and some of their variant forms. Besides the vocational subjects approved by the UGC Vocational Scheme, some universities offer a wide range of topics to choose from such as Quantitative Techniques in Banking and Finance, Rural Development, Cooperation, Mercantile Shipping, Investment Analysis, Entrepreneurship, Regional Planning, Government and Business, Stock Exchanges, Actuarial Science, Farm Management, Social Security, Business Communication. Still, experts feel that there is a need for supplementing commerce education both at the undergraduate and postgraduate levels to keep pace with the tremendous change taking place in the field of commerce and industry world over.

The M.Com course of two-year duration is offered by about 110 universities. Besides, about 25 universities have introduced M.Com course in the distance learning mode. Another four universities offer the course under the open system of distance learning. Apart from core subjects at an advanced level, it covers some of the topics offered in the management courses. In most of the universities, BBA/BBM degree holders are eligible for admission to the M.Com course. Some universities permit candidates to write thesis on approved subjects in lieu of some papers.

Career Opportunities

Surprisingly, a large number of students are now opting for commerce. At present, the share of commerce course in university enrolment is about 22% as against about 14.5% in 1972-73.

The reasons are obvious. As stated in Chapter 1 (Career Planning and Choice of Courses), next to science, commerce opens up a variety of options after 10+2 stage. The obvious choice after passing the 10+2 examination in commerce would be to go in for B.Com. After that, students can take up M.Com and possibly doctoral course (PhD). This is the route to the teaching profession. B.Com degree can also be the stepping stone for the MBA programme with a focus on finance. Apart from MBA, there are Master of Financial Control (MFC) and Master of Financial, Administration (MFA), Master of Financial Management (MFM) courses.

There are also stray examples of M.Com (Business Management), M.Com (Business System), and M.Com (Applied Economics) courses. The most favourite option has, however, been taking up Chartered and Cost Accountancy, or Company Secretaryship. (See Chapters 21, 22 and 24). These courses can also be taken up immediately after crossing the 10+2 stage. The candidates are required to qualify in Foundation examination before the can take up the main programme. In fact, commerce graduates enjoy a great deal of advantage if they want to do management courses. By the time they earn the B.Com degree, they would have already been fairly acquainted with basics of the subject.

For B.Com graduates, a mix of MBA (majoring in finance) degree and one or more of the other three, would go a long way to ensure significant positions in the corporate world. Acquiring a law degree would be an added advantage. Finally, commerce graduates have yet one more option-taking a course in the newly emerging area of e-commerce. Commerce students are well-suited for the course because apart from basic programming knowledge, candidates must have sound understanding of business transactions.