Indeed, cotton 7 production in the past three years has increased substantially and contamination has been reduced, as assessed by independent agencies. (5) Other steps taken to increase competitiveness Earlier, only small-scale manufacturers were allowed to make woven rmg, knitted and hosiery products. While the initial aim was to boost employment opportunities and promote entrepreneurship at the smaller enterprise levels, in practice it rendered the small manufacturers uncompetitive globally. By 2003/04, the sector had been totally freed. In addition, fdi up to 100 per cent through the automatic route has now been allowed. So that textile industry will have higher amount of foreign investment.
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These progressive measures have helped the textile sector to achieve improved growth in production; enhanced productivity and a larger share of textile export market in the world. (1) Technology Upgrading Fund Scheme to facilitate technological upgrading in the sector, the government launched tufs with effect from for five years initially, and which is extended up to 2011/12. The scheme provides for reimbursement of 5 per cent interest paid on term loans for technological upgrading of textile machinery. In this way, the government has assisted the Indian textile companies by ensuring that they are not over-burdened by the high interest rate prevailing in the country. (2) Integrated textile parks scheme In order to a world-class infrastructure for textile units as well as facilitate the need for them to meet international social and environmental standards, this scheme envisages the creation of textile parks in the public-private partnership mode. Currently, 30 parks are in various margaret stages of implementation, and 50 more are planned for the next five years. (3) Fiscal rationalization In the 2006 budget, the excise duty thesis on all manmade fibers and yarns was reduced from 16 per cent to 8 per cent. The 2007 budget carried it forward by reducing the customs duty on polyester fibers and yarns from 10 per cent. The customs duty on polyester raw materials such as dmt, pta and meg were also reduced from 10 per cent. These measures are expected to make manmade fibers and yarn cheaper and thus increase the competitiveness of fabric and apparel manufacturers. 4) Technology mission on Cotton In February 2000, the government launched the technology mission on Cotton with the objective of addressing the issues of raising productivity, improving quality and reduction of contamination in cotton.
630 crores for the modernization of sick mills. The cotton textile industry of the country is thus facing both short-term and longterm problems. Former includes problems of high prices, shortage of raw materials, liquidity problems due to poor sales and accumulation of huge stocks due to poor demand in the market. The long term problems of the industry include the slow pace of modernization, outdated technology resulting into low productivity, high cost of production, low profitability and increasing sickness of mills. Other small problems are inadequate training facilities in textile sector, fragmented garment industry, structural weaknesses in weaving and processing, rigid labor laws, infrastructural bottlenecks in terms of power, utility, road transport etc 6 f) Steps taken by government till now. The government has undertaken a series of progressive measures like introduction of Technology mission on Cotton (tmc technology Up gradation (sp) fund Scheme (tufs scheme for Integrated Textile park (sitp reduction in customs duty on import of state-of-the-art machinery, debt Restructuring Scheme, setting. From time to time, in consultation with all stakeholders, government modifies these schemes so as to achieve better results through improved delivery of programs/schemes.
Similarly under the yarn distribution scheme of word 1972, the government made it obligatory on all mills to supply 50 per cent of the production of yarn to the decentralized sector at reduced rates. The high import duty on imported cotton, upward revision of the price of the indigenous cotton and heavy excise duty on cotton cloths are other detrimental factors. Another problem of the mill sector is related assignment to the production of controlled cloths wherein mills are incurring huge loss. (8) Sick mills-In India about 130 cotton mills are sick and incurring constant losses. The government has set up the national Textile corporation (NTC) to run these sick mills. Although the government has invested huge money to rehabilitate and modernize these mills, but these mills are yet to become profitable. The ntc is facing dual problems of the obsolete machine, y and excess labour in these mills. According to a working group of the Planning Commission the industry needs. 55 crores for rehabilitation and.
5 As a result of which the share of mill sector is decreasing, while the share of decentralized sector is increasing. So much so that the share of mill sector in the production of cotton fabrics has gone down from. 9 per cent in 1994-95 (cf. Power looms 69 and handlooms. 4per cent in (cf. 3 and handlooms. (7) government controls and heavy excise duties: the cotton textile industry has greatly suffered due to wrong and faulty policies of the government. In the past the government has sought control of price, distribution of yarn, pattern of production, etc. At one time the price of the cloth was fixed by the government below the cost of production.
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Strikes, layoffs, retrenchments are the common features of many cotton mills in the country. (5) Competition in foreign market: The Indian cotton textile goods are facing stiff competition in foreign markets from taiwan, south Korea and Japan whose goods are cheaper and better in quality. It is really paradoxical that in a country where wages are low and cotton is internally available, production costs should be so high. While certain traditional buyers of Indian textile goods like myanmar, Indonesia, sri spondylolisthesis lanka, ethiopia, aden etc. Are facing severe balance of trade problem some european countries like france, germany,.
Have imposed" limitations over the Indian textile imports. Acute world recession has badly affected the export prospects. (6) Competition from the decentralized sector: An important factor for the rowing sickness of the mill sector is the growth of the decentralized sector. Being a small-scale sector, with the government allowed excise concessions and other privileges. These accompanied with low wages have led to low cost of production in the decentralized sector.
Fluctuating prices and uncertainties in the availability of raw material cause low production. (2) Obsolete machinery: In India most of the cotton textile mills are working with old and obsolete machinery. According to one estimate in India over 60 per cent of the spindles are more than 25 years old. The automatic looms account for only 18 per cent of the total number of looms in the country against the world average of 62 per cent and 100 per cent in the United States. Obsolete machinery leads to low output and poor quality of goods as a result of which Indian textile goods are not able to face competition in the international market.
(3) Power shortage-textile mills are facing acute shortage of power. Supplies of coal are difficult to obtain and frequent cuts in electricity and load shedding affect the industry badly. This leads to loss of man hours, low production and loss in the mills. (4) Low productivity of labour: Low productivity is another major problem of cotton textile industry. On an verage an Indian factory worker only handles 380 spindles and 2 looms as compared to 1,500-2,000 spindles and 30 looms in Japan. If the productivity of an American worker is taken as 100, the corresponding figure for. Is 51 and for India only. Also industrial relations are not very good in the country.
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In small organizations, centralization has a moderate negative effect on job satisfaction. Centralization has a low negative, task routineness has a low positive and formalization has a moderate negative effect on group presentation processes. The effect of communication openness is pronounced on job satisfaction and performance. The negative effect of communication accuracy is high on job involvement and group processes and moderate on organizational performance. 4 e) Problems faced by textile Industry in India (1) Shortage of raw materials: Raw material determines 35 per cent of the total production cost. The country is short of cotton, particularly long- staple cotton which is imported from pakistan, kenya, uganda, sudan, Egypt, tanzania,. It is pity that despite largest area under cotton (26 per cent of the world acreage) the country accounts for only 9 percent of the world output of cotton.
Six textile organizations (3 small and 3 large) were selected within the city. The objective of single the study was to examine the difference between small and large organizations in terms of structure, communication and effectiveness. The difference based on structure, communication and effectiveness between large and small organizations show that the two organizations differ significantly with respect to all dimensions except participation in decision making. Large organizations are more centralized, formalized and employees experience highly routine tasks. With regard to communication pattern, small organizations have more open communication while in large organizations communication is more accurate. With regard to effectiveness, large organizations are more effective with regard to all dimensions except job involvement and job performance which are better in small organizations. The effect of structure and communication variables on organizational commitment, job satisfaction, organizational performance and adaptability are more pronounced in large organizations while moderate in small ones. Participation in decision making process has a strong positive effect on job satisfaction, commitment, organization performance and moderate positive effect on job performance. Task routineness and formalization have low positive effect on job involvement and performance in large firms.
scale power loom sector, which is decentralized, lies in between of the two. 3 Indian Textile Industry is divided into major 3 segments: 1) Cotton Textiles 2) Synthetic Textiles 3) Others (wool, jute, silk etc) Till today cotton textiles are on top with 73 share in total Indian textiles. Coexistence of old technologies of hand working (spinning, weaving, and knitting) with the advanced automatic spindles and loom makes the structure of cotton textile industry very complex. Indian textile industry consists of small scale, non integrated spinning, weaving, knitting, fabric finishing and clothing enterprises, which is not the case in other countries. This unique structure is because of government policies that have promoted labor intensive small scale operations and discriminated against big scale organizations. D) Communication and effectiveness: we will write a custom essay sample. Indian Textile Industry or any similar topic only for you. Order now, the study regarding this was conducted within city of coimbatore, which is considered Manchester of south India.
Indias manually operated textile machines were among the best in the world, and served as a model for production of the first textile machines in newly industrialized countries like england. Marco polos records show that Indian textiles used to be exported to many Asian countries. Textiles have also comprised a significant portion of the portuguese trade with India. These included embroidered bedspreads, wall hangings and quits of embroidered wild silk on a cotton or jute ground. A big success of Indian textile industry led to the foundation of the london East India company in 1600, followed by dutch and French companies. By 1670, there was serious demand for their governments to ban the import of these cottons from India. The legacy of the Indian textile industry stemmed from its wealth in natural resources cotton, jute and silk. The technology used was superior and the skills of the weavers online gave the finished product a most beautiful and ethnic look.
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Indian Textile IndustryStructure, problems and Solutions Subject: Term Paper of Organization Management Under guidance. Vinayshil gautam Written by jaimeen Rana Entry 2012SMF6890 1 index a) Introduction 3 b) History 3 c) Structure of Indian Textile Industry 3 d) Communication and Effectiveness 4 e) Problems faced by textile Industry in India 5 f) Steps taken by government till now. It stands at number presentation two position in generating huge employment for both educated and uneducated labor in India. Over 350 lakh people are employed in this industry in India. 14 of total industrial production is done by this sector. 4 of Indias gdp is obtained by this sector. It contributes 17 to the Indias total export earnings. Top companies in Textile industry in India: Bombay dyeing Fabindia jct limited Welspun India ltd lakshmi mills Mysore silk factory Arvind Mills raymonds Reliance textiles Grasim Industries ) History Indias textile industry evolved and developed at a very early stage and its manufacturing technology was.