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You read ‘Indian Textile Industry’ in category ‘Essay examples’ (3) Electricity shortage-Textile mills are facing acute deficit of power. Supplies of fossil fuel are challenging to obtain and frequent cuts in electrical energy and load shedding affect the industry badly. This leads to loss of man hours, low production and reduction in the generators. (4) Low productivity of labour: Low productivity is another major problem of cotton linen industry. With an verage a great Indian manufacturer worker just handles 380 spindles and 2 harnesses as compared to one particular, 500-2, 000 spindles and 30 looms in Asia. If the productivity of an American worker is usually taken as 75, the corresponding number for U. K. is definitely 51 as well as for India simply 13. Also industrial relationships are not very good in the region. Strikes, layoffs, retrenchments will be the common top features of many natural cotton mills in the area. (5) Competition in foreign market: The Indian organic cotton textile items are facing stiff competition in overseas markets by Taiwan, To the south Korea and Japan in whose goods are cheaper and better in quality.

It is really paradoxical that in a nation where pay are low and cotton is in house available, creation costs must be so high. Whilst certain traditional buyers of Indian fabric goods just like Myanmar, Dalam negri, Sri Lanka, Ethiopia, Aden etc . are facing severe stability of operate problem a lot of European countries just like France, Australia, U. T. and Luxembourg etc . possess imposed subgroup limitations in the Indian fabric imports. Serious world economic depression has terribly affected the export prospects. (6) Competition from the decentralized sector: A key point for the rowing sickness of the mill sector is the growth of the decentralized sector. Being a small-scale sector, the us government allowed bar concessions and other privileges. These accompanied with low wages possess led to low cost of production in the decentralized sector. five As a result of that this share of mill sector is lowering, while the discuss of decentralized sector is definitely increasing. So much so that the discuss of work sector within the manufacturing of cotton materials has gone straight down from 7. 9 % in 1994-95 (cf. electric power looms 69% and handlooms 21. 6%) to 5. 4per penny in 1999-2000 (cf. ower looms 76. 3% and handlooms nineteen. 3%). (7) Government settings and heavy excise duties: the natural cotton textile market has tremendously suffered due to wrong and faulty procedures of the Authorities. In the past the Government has wanted control of cost, distribution of yarn, routine of creation, etc . In the past the price of the cloth was fixed by the Government under the cost of production. Similarly underneath the yarn distribution scheme of 1972, the us government made it necessary on all mills to supply 50 percent of the production of wool to the decentralized sector by reduced rates.

The excessive import duty on brought in cotton, upwards revision in the price in the indigenous natural cotton and weighty excise duty on cotton cloths is also detrimental elements. Another problem of the generator sector is related to the production of controlled cloths wherein generators are incurring huge loss. (8) Ill mills-In India about 135 cotton mills are sick and tired and taking on constant failures. The Government provides the Countrywide Textile Corporation (NTC) to run these sick and tired mills. Although the government offers invested large money to rehabilitate and modernize these kinds of mills, but these mills will be yet to get profitable.

The NTC is definitely facing dual problems from the obsolete equipment, y and excess labour in these mills. According into a working number of the Planning Commission the industry needs Rs. 180. fifty-five crores intended for rehabilitation and Rs. 630 crores intended for the modernization of sick and tired mills. The cotton linen industry from the country is definitely thus facing both initial and longterm problems. Ex – includes problems of high rates, shortage of recycleables, liquidity concerns due to poor sales and accumulation of big stocks due to poor require in the market.

The future problems in the industry range from the slow tempo of modernization, outdated technology resulting in to low production, high cost of development, low earnings and increasing sickness of mills. Different small problems are inadequate training facilities in textile sector, fragmented garment industry, strength weaknesses in weaving and processing, strict labor laws, infrastructural bottlenecks in terms of electrical power, utility, highway transport and many others 6 f) Steps used by government till now

The federal government has carried out a series of progressive measures just like introduction of Technology Quest on Natural cotton (TMC), Technology Up gradation (sp) fund Scheme (TUFS), Scheme intended for Integrated Linen Park (SITP), reduction in persuits duty upon import of state-of-the-art machinery, Debt Restructuring Scheme, preparing of Apparel Training and Design Centers (ATDCs), 100% Foreign Immediate Investment in the textile sector under automatic route, establishing of Nationwide Institute of Fashion Technology (NIFT) etc, for upgrading and strengthening the textile sector in India.

From time to time, in consultation with all stakeholders, Authorities modifies these types of schemes so as to achieve better results through better delivery of programs/schemes. These kinds of progressive steps have helped the textile sector to achieve improved growth in production, enhanced productivity and a larger share of textile foreign trade market on the globe. (1) Technology Upgrading Finance Scheme To facilitate technical upgrading in the sector, the federal government launched TUFS with impact from 1 April 1999 for five years initially, and which is extended approximately 2011/12.

The scheme offers reimbursement of 5 % interest paid out on term loans pertaining to technological updating of linen machinery. In this way, the Government features assisted the Indian linen companies by ensuring that they are certainly not over-burdened by the high interest rate prevailing near your vicinity. (2) Bundled textile recreational areas scheme In order to a worldclass infrastructure intended for textile products as well as facilitate the need for those to meet worldwide social and environmental criteria, this scheme envisages the creation of textile recreational areas in the public-private partnership method.

Currently, 30 parks happen to be in various phases of rendering, and 60 more happen to be planned for the next five years. (3) Financial rationalization In the 2006 spending budget, the bar duty on all manmade fibers and yarns was reduced coming from 16 percent to 8 percent. The 3 years ago budget transported it forwards by reducing the traditions duty in polyester materials and yarns from 12 per cent to 7. 5 per cent. The customs responsibility on polyester-made raw materials including DMT, PTA and MEG were also lowered from twelve per cent to 7. your five per cent. These types of measures are expected to make manmade fibers and yarn less expensive and thus boost the competitiveness of cloth and clothes manufacturers. 4) Technology Objective on Organic cotton In February 2000, the us government launched the Technology Objective on Natural cotton with the objective of addressing the issues of elevating productivity, enhancing quality and reduction of contamination in cotton. Certainly, cotton 7 production during the past three years has increased substantially and contamination have been reduced, as assessed by simply independent organizations. (5) Different steps taken up increase competition Earlier, only small-scale suppliers were permitted to make weaved RMG, woven and leg wear products.

While the initial target was to increase employment opportunities and promote entrepreneurship at the smaller sized enterprise amounts, in practice this rendered the tiny manufacturers uncompetitive globally. By 2003/04, the sector was totally freed. In addition , FDI up to 90 per cent throughout the automatic path has now been allowed. So that textile market will have higher amount of foreign purchase. And new-technology machinery works extremely well in India by foreign players that may cause community players also to use the newest technology. g) Strategies for expansion 1) Increasing labour laws and regulations: One of the main requirements for expansion in the attire subsector is a relaxation/amendment with the labour laws, to ensure the same chance of success for the country’s exporters and producers in the present global environment. Outdated labour laws have caused inflexibility in the clothing sector, leading equally to fragmented operations in order to circumvent these kinds of laws also to lost export orders due to industry’s hesitation over expanding when there is an upsurge. Most of the countries competing with India have labour laws and regulations that are more flexible.

For example , the Chinese apparel industry offers highly versatile labour laws and regulations that allow for lay-offs during the non-busy season, employing of deal labour, and a flexible employing and shooting system in SEZ-based products. The Mexican apparel industry allows layoffs during the slack business period. The sector in India is suggesting the dotacion of overall flexibility to fabric exporting models in employing labour, susceptible to ensuring 100 days work to focus on variations in demand. An increase in daily working several hours from being unfaithful hours a day to half of the day a day, in addition to weekly doing work hours coming from 48 several hours a week to 60 hours a week, is likewise being proposed. 2) Reducing transaction costs: Various research have established that the transaction costs faced by Indian market are very high, which negatively affects its competitiveness. A report undertaken by the EXIM Lender of India clearly showed that though transaction costs in India had dropped because of weak procedural difficulties, they were continue to substantially bigger if in comparison with competitors. Purchase costs change from sector to sector, and they are very high inside the textiles and garment subsector, ranging from a few per cent to 10 per cent of foreign trade revenue in 2002. These types of costs, inter alia, are shown in table installment payments on your 3) Improving the general infrastructural conditions: This improvement includes roads, travel etc ., so the costs of reaching the nearest port and also turnaround time at the slot are worldwide comparable, to ensure Indian exporters are not put at a disadvantage vis-a-vis global competitors. almost 8 h) Bottom line Indian fabric industry will be a major source of work for both equally skilled and unskilled labor of India so it is extremely important industry as per economic perspective. This industry faces various problems some of which have been conquer thanks to govt policies. But , still several problems are but to be resolved.

Different strategies have to be executed for that purpose. Large sections of the linen value-chain nonetheless need to be fully modernized, even though the export sector has yet to take full advantage of their existing production strength. There are many areas around the globe and many products where India is very weakly represented. Thus, while the non-public sector should continue their heavy investment in this market during the next several years, building on the recent positive styles, India also needs to integrate completely into the global textile and apparel benefit chain to be able to reap the entire benefits from it is strengths.

Only a coordinated hard work by every ” the federal government, industry and individual models ” may enable India to achieve it is apparently substantial and worked out targets of the 12th FiveYear Plan. 9 i) Recommendations 1) Sharma Milan, “Textile Industry of India and Pakistan, A. P. H. Publishing Corporation, New Delhi, 2006 2) Research newspaper: Organizational structure, communication and effectiveness in Textile market (January, 2000) Authors: To Chandramohan Reddy and S Gayathri Diary: Indian Log of Industrial Relations http://www. jstor. org/stable/27767666 ) Article: American indian Textile Sector by Doctor P Chellasamy and D Sumathi http://www. fibre2fashion. com/industry-article/market-research-industry-reports/indian-textileindustry/indian-textile-industry1. asp 4) Article: Indian textile and clothing sector poised for a leap simply by J. N. Singh http://www. unescap. org/tid/publication/tipub2500_pt1chap6. pdf 5) Article: American indian Textile and apparel sector: An examination of aspects related to home-based supply and Demand by simply Badri Narayan G http://www. unescap. org/tid/publication/tipub2500_pt1chap5. pdf 12