Small Scale Textile Industry

minor SCALE framework INDUSTRY rustle India is the worlds cooperate sizeablest producer of cloths and garments after china. It is the worlds third largest producer of equalafter China and the USAand the present moment largest standardised fiber consumer after China. The Indian framework manufacturing is as several(a) and complex as outlandish itself and it combines with equal equanimity this immense assortment into a cohesive whole. The fundamental strength of this exertion flows from its strong toil base of wide range of fibres / recounts from natural fibres like cotton excogitatet, jute, silk and wool to unreal /man-make fibres like polyester, viscose, nylon and acrylic.The increase bod of the Indian textile assiduity in the persist decade has been considerably more than the previous decades, in the main on key of liberalization of trade and economic policies initiated by the goerning body in the 1990s. In producer-driven prize chains, large, usua lly transnational, make outrs play the centimeral roles in coordinating end product networks. This is typical of capital- and engineering intensifier industries such as automobiles, aircraft, computers, semiconductors and heavy machinery.Buyer-driven prise chains atomic number 18 those in which large retailers, marketers and branded manufacturers play the opposite roles in setting up decentralize production networks in a variety of exporting countries, typically located in developing countries. This pattern of trade- lead industrialization has become common in labour-intensive, consumer-goods industries such as garments, footwear, toys, passelicrafts and consumer electronics. expectant manufacturers control the producer-driven value chains at the point of production, while marketers and merchandisers make out the main leverage in buyer-driven value chains at the radiation pattern and retail stages.App arel is an beau ideal diligence for examining the dynamics of buyer-d riven value chains. The relative still of setting up clothing companies, coupled with the prevalence of developed-country nurtureionism in this sphere of influence, has led to an unparalleled diversity of garment exporters in the third world. Apparel is an ideal application for examining the dynamics of buyer-driven value chains. Indias textile patience comprises broadly speaking weensy exceed, non-integrated spinning, weave, finishing, and apparel-making enterprises. In this term paper, we study somewhat the gauzy scale Indian Textile intentness, its importance, role, roducts, finance, subsidies, attractiveness and the growth. We also present opportunities in this domain, the challenges, jobs and salaries in these industries. memorial OF INDIAN TEXTILE INDUSTRY India has been well k promptlyn for her textile goods since precise ancient times. The traditional textile effort of India was virtually decayed during the compound regime. However, the modern textile exertion took birth in India in the earlyish nineteenth blow when the first-year textile mill in the country was established at Fort gloster near Calcutta in 1818.The cotton textile industry, however, make its real beginning in Bombay, in 1850s. The first cotton textile mill of Bombay was established in 1854 by a Parsi cotton merchant then engaged in overseas and internal trade. Indeed, the wide studyity of the early mill around were the handiwork of Parsi merchants engaged in recitation and cloth trade at home and Chinese and African markets. The first cotton mill in Ahmeda hope little, which was correcttually to emerge as a rival centre to Bombay, was established in 1861. The spread of the textile industry to Ahmedabad was largely due to the Gujarati trading class.The cotton textile industry made rapid progress in the second half of the nineteenth century and by the end of the century there were 178 cotton textile mill unless during the year 1900 the cotton textile industry was in bad state due to the great famine and a play of mill of Bombay and Ahmedabad were to be closed down for prospicient periods. The two world wars and the Swadeshi effect provided great stimulus to the Indian cotton textile industry. However, during the period 1922 to 1937 the industry was in doldrums and during this period a lean of the Bombay mill about changed hands. The number of mill about increased from 178 with 4. 5 hundred thousand looms in 1901 to 249 mills with 13. 35 lakh looms in 1921 and provided to 396 mills with over 20 lakh looms in 1941. By 1945 there were 417 mills employing 5. 10 lakh workers. The divider of the country at the time of independence affected the cotton textile industry also. The Indian union got 409 out of the 423 textiles mills of the undivided India. 14 mills and 22 per cent of the land under cotton goal went to Pakistan. Some mills were closed down for some time. For a number of years since independence, Indian mills had to import cotton from Pakistan and other countries.After independence, the cotton textile industry made rapid strides under the Plans. Between 1951 and 1982 the summarise number of spindles doubled from 11 meg to 22 gazillion. It increased further to well over 26 million by 1989-90. A SMALL SCALE INDUSTRY In most of the developing countries like India, keen Scale Industries (SSI) constitutes an all valuable(predicate) and crucial segment of the industrial sector. They play an important role in employment creation, resource utilization and income generation and support to promote changes in a gradual and phased manner.They have been let upn an important transport in the framework of Indian planning since beginning both(prenominal) for economic and ideological reasons. The reasons are obvious. The scarcity of capital in India hard limits the number of non-farm jobs that can be created beca practice investment costs per job are high in large and medium industries. An effective suppuration constitution has to attempt to increase the use of labor, relative to capital to the extent that it is economically efficient. Small scale enterprises are generally more labor intensive than larger organizations.As a matter of fact, small scale sector has now emerged as a dynamic and vibrant sector for the Indian deli actually in recent years. It has attracted so much attention not hardly from industrial planners and economists further also from sociologists, administrators and politicians. Definition of Small Scale Industry The Small Scale Industries Board in 1955 defined, Small-scale industry as a unit employing less than 50 employees if using power and less than ascorbic acid employees if not using power and with a capital addition not exceeding Rs. 5 lakhs. The initial capital investment of Rs. lakhs has been changed to Rs. 10 lakhs for small industries and Rs. 15 lakhs for ancillaries in 1975. Again this rigid capital investment limit was raised to Rs. 15 lakhs for small units and Rs. 20 lakhs for ancillary units in 1980. The authorities of India in 1985 has further increased the investment limit to Rs. 35 lakhs for belittled units and 45 lakhs for ancillary units. Again the bracing Industrial form _or_ system of government in 1991 raised the investment ceilings in plant and machinery to Rs. 60 lakhs for pocket-size units and Rs. 75 lakhs for ancillary units.As per the Abid Hussain Committees recommendations on small-scale industry, the Government of India has, in knock against 1997 further raised investment ceilings to Rs. 3 crores for small-scale and ancillary industries and to Rs. 50 lakhs for tiny industry. THE TEXTILE AND APPAREL SUPPLY CHAIN TRENDS IN PRODUCTION- recital AND FABRIC (SMALL SCALE INDUSTRIES) Yarn and fabric production has been annually suppuration at 1. 9% and 2. 7% respecitvely since cc0. Yarn production has increased from 3,940 mn kg in 1999? 00 to 4,326 mn kg in 2004? 05. Man? made ribbon has driven much of this, show ing a robust growth of 4. % in the last five years. Spun yarn production and the cotton yarn sector have also grown, albeit less impressively, recording growths of 2. 4% and 0. 6% respectively. stuff production has been growing at 2. 7% annually amongst 2000 and 2005, driven primarily by the smallscale, independent powerloom sector. Growth in the 100% non? cotton segment touched 5%, followed by cotton fabric at 1. 5% and blended fabric at 0. 3%. model production touched a peak 45,378 million sq mtrs in 2004? 05, and in Nov 06, production recorded a robust 9% growth compared to the same period in the previous year.STRUCTURE OF INDIAs SMALL SCALE TEXTILE INDUSTRY The textile sector in India is one of the worlds largest. The textile industry right away is divided into three segments 1. Cotton Textiles 2. Synthetic Textiles 3. Other like Wool, Jute, Silk etc. All segments have their own place but even today cotton textiles continue to dominate with 73% share. The structure of cotto n textile industry is very complex with co-existence of oldest technologies of hand spinning and hand interweave with the most sophisticated automatic spindles and loom.The structure of the textile industry is extremely complex with the modern, sophisticated and highly mechanized mill sector on the one hand and hand spinning and hand weaving (handloom sector) on the other in between falls the decentralised small scale powerloom sector. Unlike other major textile-producing countries, Indias textile industry is comprised mostly of small-scale, nonintegrated spinning, weaving, finishing, and apparel-making enterprises. This singular industry structure is primarily a legacy of government policies that have promoted laborintensive, small-scale operations and discriminated against larger scale firms ?Composite Mills Relatively large-scale mills that integrate spinning, weaving and, sometimes, fabric finishing are common in other major textile-producing countries. In India, however, thes e types of mills now draw for about only 3 per centum of output in the textile sector. About 276 composite mills are now operating in India, most owned by the public sector and umteen deemed financially ? sick.? In 2003-2004 composite mills that produced 1434 m. sq mts of cloth. Most of these mills are located in Gujarat and Maharashtra. ? SpinningSpinning is the process of converting cotton or manmade fiber into yarn to be used for weaving and knitwork. This mills chiefly located in North India. Spinning sector is engineering science intensive and productivity is affected by the quality of cotton and the cleanup process used during ginning. doublely due to deregulation beginning in the mid-1980s, spinning is the most consolidated and technically efficient sector in Indias textile industry. Average plant size remains small, however, and technology outdated, relative to other major producers.In 2002/03, Indias spinning sector consisted of about 1,146 small-scale independent fi rms and 1,599 larger scale independent units. ? Weaving and knitting The weaving and knits sector lies at the heart of the industry. In 2004-05, of the total production from the weaving sector, about 46 percent was cotton cloth, 41 percent was 100% non-cotton including khadi, wool and silk and 13 percent was blended cloth. Three classifiable technologies are used in the sector handlooms, powerlooms and knitting machines.Weaving and knitting converts cotton, manmade, or blended yarns into woven or knitted fabrics. Indias weaving and knitting sector remains highly fragmented, small-scale, and labour-intensive. This sector consists of about 3. 9 million handlooms, 380,000 ? powerloom? enter-prises that operate about 1. 7 million looms, and just 137,000 looms in the motley composite mills. ?Powerlooms? are small firms, with an average loom capacity of cardinal to five owned by independent entrepreneurs or weavers. Modern shuttleless looms account for less than 1 percent of loom capa city. Fabric Finishing Fabric finishing (also referred to as processing), which includes dyeing, printing, and other cloth preparation prior to the manufacture of clothing, is also dominated by a large number of independent, small-scale enterprises. Overall, about 2,300 processors are operating in India, including about 2,100 independent units and 200 units that are integrated with spinning, weaving, or knitting units. ? Clothing Apparel is produced by about 77,000 small-scale units classified as domestic manufacturers, manufacturer exporters, and fabricators (subcontractors).ANALYSIS OF THE MATERIALS Indias textile industry comprises mostly small-scale, non-integrated spinning, weaving, finishing, and apparel-making enterprises. Wool Indias wool industry is primarily located in the northern states of Punjab, Haryana, and Rajasthan. These three states alone account for more than 75 per cent of the production capacity, with both licensed and decentralized players. The woolen industry provides employment to approximately 1. 2 million raft. Silk India is the second largest producer of silk in the world, contributing about 18 per cent to globular production.Growing shoot for traditional silk fabrics and exports of handloom products has spurred growth in silk demand. Jute Jute industry occupies an important place in Indias economy, being one of the major industries in the eastern region, particularly in West Bengal. It supports nearly 4 million land families, besides providing direct employment to 260,000 industrial workers and livelihood to another 140,000 people in the tertiary sector and allied activities. Handloom The handloom sector is based on Indian traditional crafts. It employs nearly 7. million people and contributes 13 per cent to cloth production. ATTRACTIVENESS OF THE ENTERPRISE THE THRUST AREAS Textile Industry is unique in a sense that despite it being mainly small-scale, it follows the principles of large scale industries. The major thrust are as are? ? ? ? ? ? ? ? ? ? Innovative marketing strategies variegation of product Enhancement of textile oriented technology Quality sense Intensifying raw existents Growth of productivity Increase in exports pay arrangements Creating employment opportunities Human Resource DevelopmentGROWTH AND OPPORTUNITIES The future outlook for the industry looks promising, wage hike income levels in both urban and rural markets will ensure a rising market for the cotton fabrics considered a basic need in the realm of new economic reforms (NER) proper attention has been given to the developing of the textiles industry in the Tenth plan. Total outlay on the development of textile industry as envisaged in the tenth plan is fixed at Rs. 1980 crore. The production envisaged in the terminal year of the Tenth plan are 45,500 million sq metres of cloth 4,150 million kg of spun yarn and 1,450 million kg of man made filament yarn.The per capita handiness of cloth was 28. 00 sq meters by 2006-2007 as compared to 23. 19 sq meters in 2000-01 showing a growth of 3. 19 percent. Some of the factors that led to growth of this sector are The textile industry has been doing extremely well during the last few years in basis of production & export and has been investing heavily in expansion and modernization of capacity. India has been experiencing strong performance in the textile industry, across different segments of the value chain, from raw materials to garments. Domestic production has been growing, as well as exports. ? ? ? ? ? ? ? ? ? ? amply operational efficiency in spinning and weaving Low-cost competent labor Large and growing domestic market Easy availability of raw materials State-of-the-art design capabilities Well-established network of related and supporting industries school machines of higher speed and production capability Lower raw material costs, wastage costs and labor costs when compared to other countries Fully developed textile value chain extending from fi ber to fabric to garment exports Favorable demand conditions Managements with business background ? ? ?Presence of qualified technical personnel Large domestic market Availability of testing facilities JOBS AND SALARIES Small scale industries are labor intensive and they provide a large number of jobs but the salaries are not so high. Small scale textile firms adoptt produce sufficient profit so as to give high salaries to the laborers. But, most of the jobs have job security because of the perennial nature of the work. The workers are skilled and hence not easily replaceable. A very important point when it comes to small scale textile industries is the large social function of women and hence a great women employability ratio.CHALLENGES FOR SMALL SCALE TEXTILE INDUSTRIES The small scale Indian textile industry is reeling under manifold problems. The major challenges that the industry faces- ? Sickness Sickness is widespread in the Indian textile industry. After the engineering i ndustry, the cotton textile industry has the highest incidence of sickness. As many as 125 sick units have been taken over by the Central Government. ? Obsolescence The plant and machinery and technology employed by a number of units are obsolete.The need today is to make the industry technologically up-to-date rather than expand capacity as such. This need was foreseen kinda some time back and schemes for modernization of textile industry had been introduced. ? Government Regulations Government regulations like the obligation to produced controlled cloth are against the interest of the industry. During the last two decades the excessive regulations exercised by the government on the mill sector has promoted inefficiency in both production and management. This has also resulted in a grand waste of raw materials and productive facilities.For example, the mills are not allowed to use filament yarn in warp in order to protect the interest of art silk and power loom sector which use t his yarn to provide to the affluent section of society.? ? Competition from other Countries In the outside(a) market, India has been liner severe competition from other countries like Taiwan, South Korea, China and Japan. The high cost of production of the Indian industry is a in effect(p) adverse factor. ? Labor Problems Small scale industries are labor intensive. The Indian Textile Industry is frequently plagued by labor problems.The very long strike of the textile workers of Bombay caused losses amounting to millions of rupees not only to the workers and industry but also to the nation in terms of excise and other taxes and exports. ? gathering of Stock At times the industry faces the problems of very low moody take of stocks resulting in accumulation of huge stocks. The situation leads to price cuts and the like leading to loss or low profits. CONCLUSION The Indian textile industry is currently one of the largest and most important sector in the economy in terms of output foreign exchange loot and employment in India.The Textile industry has the potential to scale new height in the globalized economy. The textile industry in India has gone through with(predicate) significant charges in anticipation of increased international competition. The industry is facing numerous problems and among them the most important once are those of liquidity for many organized sector units, demand recession and insufficient price realization. The long-range problems include the need for sufficient modernisation and restructuring of the entire industry to cater more effectively to the demands of the domestic and foreign markets for textiles as per the needs of today and tomorrow.REFERENCES 1. http//www. Indianbusiness. nic. in/India-profile/textile. htm 2. http//www. economywatch. com/business-and-economy/textile-Industry. html 3. http//hotdocs. usitc. gov 4. http//www. texprocil. com/annreport/profile-texprocil. doc 5. http//www. aepcindia. com 6. http//www. in. kpmg. com 7. http//pd. cpim. org/2004/10312004-ganguly. html 8. http//www. pdexcil. org/export. htm 9. http//www. giftsnaccessories. com/magazine/Handicrafts/11. htm