Term Paper On business inviroment

8/14/2019 Term Paper On business inviroment

1/21

TERM PAPER ON

BUSINESS

ENVIROMENT

TOPIC: - HANDLOOM

INDUSTRY

ACKNOWLEDGEMENT

The term paper what I have presented is not the

made outcome of my own labour alone , there are

dozens of hands helps me to complete all through

the program .

My sincere thanks to Miss IMPREET KOUR

Internal guide for guiding me to work on this term

paper.

S

UBMITTED BY:-


2/21

Sushil Kumar

Roll no. A-19

MBA 1st semester

CONTEN T

1.Introduction2.Roll of Handloom sector

3.Ongoing schemes and program

4.Deen Dayal Hathkargha Photsahan Yojana

5. National center for textile design(NCTD)

6.Input support

7.NHDC8.Credit facility

9.Suggestion

10. PESTEL Analysis

11. Conclusion

12. Reference13. Article


3/21

INTRODUCTION:

The Textile industry occupies a unique place in our country. Oneof the earliest to come into existence in India, it accounts for 14%of the total Industrial production, contributes to nearly 30% of the


4/21

total exports and is the second largest employment generatorafter agriculture.Today, India's textile sector comprises four important segments:Modern textile mills

Independent Power loomsHandlooms andGarments

ROLE OF HANDLOOM SECTOR:

The Handloom sector plays a very important role in the countryseconomy. It is one of the largest economic activities providing

direct employment to over 65 lakhs persons engaged in weavingand allied activities. As a result of effective Governmentintervention through financial assistance and implementation ofvarious developmental and welfare schemes, this sector hasbeen able to withstand competition from the power loom and millsectors. This sector contributes nearly 19% of the total clothproduced in the country and also adds substantially to exportearnings. Handloom is unparalleled in its flexibility and versatility,permitting experimentation and encouraging innovations. Thestrength of Handloom lies in the introducing innovative designs,which cannot be replicated by the Power loom sector. Thus,Handloom forms a part of the heritage of India and exemplifiesthe richness and diversity of our country and the artistry of theWeavers. The Office of the Development Commissioner forHandlooms has been implementing, since its inception in the year1976, various schemes for the promotion and development of thehandloom sector and providing assistance to the handloom

weavers in a variety of ways.

Some of the major programs relate to:

Modernization and Up gradation of TechnologyInput Support


5/21

Marketing SupportPublicityInfrastructural SupportWelfare MeasuresComposite Growth Oriented PackageDevelopment of Exportable ProductsResearch & Development

The various schemes implemented by the Office of DevelopmentCommissioner for Handlooms address the needs of weavers whoconstitute the disadvantaged social strata and occupationalgroups, which are at the bottom of the economic hierarchy.

Concerted efforts are being made through the schemes andprograms to enhance production, productivity, and efficiency ofthe handloom sector and enhance the income and socio-economic status of the weavers by upgrading their skills andproviding infrastructural support and essential inputs.


6/21

ONGOING SCHEMES AND PROGRAMMES:

In order to provide financial assistance in an integrated manner tothe handloom weavers and strengthen the design segment of thefabric, Government of India had taken new initiatives in addition toongoing other schemes and programs by launching new scheme,namely, Deen Dayal Hathkargha Protsahan Yojana and set up a

National Centre for Textile Design (NCTD) recently.

DEEN DAYAL HATHKARGHA PROTSAHAN YOJANA:


7/21

The scheme has come into operation with effect from April 2001.It is a comprehensive scheme for handloom sectors to take careof a wide range of activities such as, product

development, infrastructural and institutional support, training ofweavers, supply of equipment and marketing support, etc. both atmacro and micro levels in an integrated and coordinated mannerfor an overall development and benefit of handloom weavers. Italso, attempts to provide such facilities, which would enable theweavers within co-operative fold as well as outside, to takeup production as per the market demand. The scheme attemptsto assist the needs of weavers for working capital, basic inputs,

creating awareness and to support quality fabric productionsthrough appropriate design intervention for increase inproductivity along with provision for publicity, marketing andtransport incentives, etc. The Government of India has sanctioneda sum of Rs. 240.69 lakhs and released a sum of Rs. 120.28lakhs as first installment Central share for implementation of 64projects.

NATIONAL CENTRE FOR TEXTILE DESIGN (NCTD):

National Centre for Textile Design was set-up in January 2001 inHandloom Pavilion, Pragati Maidan, New Delhi to promotetraditional & contemporary designs to enable the textile industry,particularly the Handloom sector, to be responsive to the rapidlychanging market demand.

Objectives of the Scheme-

To link weavers to the market and provide him withadequate tools to respond to the rapidly changing market situationand demands.


8/21

To link all people belonging to the textile industry withthe developments in other fields.

To give weavers, workers and designers greater exposure and

access to national and international markets thereby giving thema better livelihood and avenues for more sustainabledevelopment.

ENFORCEMENT OF HANDLOOMS RESERVATIONACT:

The Handlooms (Reservation of Articles for Production) Act, 1985

aims to protect millions of handloom weavers from theencroachment made on their livelihood by the power loomoperators and textile mill sector, by reserving certain categories oftextile articles for exclusive production by handlooms.

INPUT SUPPORT:

Handloom sector is largely dependent on the organized millsector for supply of its principal raw material namely yarns. Thissector uses the bulk of its yarn in the form of hanks. The CentralGovernment ensures regular supply of yarn to the handloomsector by enforcing the order (Hank Yarn Packing Notification) bymaking it obligatory on the spinning mills to pack a prescribed %of the yarn produced by them in hank form.

MILL GATE PRICE SCHEME:

The Scheme was introduced in 1992-93 with an objective ofproviding all type of yarn to the handloom weavers organizationsat the price available at Mill Gate.


9/21

NATIONAL HANDLOOM DEVELOPMENTCORPORATION (NHDC)-

National Handloom Development Corporation (NHDC), aGovernment of India undertaking, is the only agency authorized to

implement the scheme. The scheme benefits the followingorganizations and their member weavers.

All Handloom Organizations of National/State/Regional level.

Handloom Development Centres;


10/21

Handloom producers/exporters/manufacturers registered withthe Handloom Export Promotion Council (HEPC) or any otherExport Promotion Council under the Ministry of Textiles, or with

the State Directors of Industries;

All approved export houses/trading houses/star trading housesfor production of handloom items;Members of recognized/approved handloom associations;

NGOs fulfilling CAPART norms;

Any other agency, with the approval of the DevelopmentCommissioner for Handlooms;

All types of yarn required for production of handloom items arecovered under the scheme.

The Government of India is bearing the entire expenditure underthe Scheme. The yarn is being arranged by NHDC from the millsas per the requirement of the user agencies and transported to

the go down of the agency.

CREDIT FACILITY:

The working capital requirements of the Weavers CooperativeSocieties (WCS) and State Handloom Development Corporations(SHDC) for production, procurement, marketing, purchase andsale of yarn, National Bank for Agriculture and Rural Development

(NABARD) provides refinance facilities through State CooperativeBanks (SCB), District Central Cooperative Banks (DCCB) andCommercial Banks at concessional rates of interest. The NationalScheduled Castes and Scheduled Tribes Finance andDevelopment Corporation, National Backward Classes Financeand Development Corporation, National Minorities Finance and


11/21

Development Corporation also provides working capital loans tothe Weavers identified communities.

SUGGESTIONS TO OVERCOME FROM THESEPROBLEMS:

The central government needs to recognize the value of thehandloom sector in sustainable development. On its own, thegovernment would never be able to provide employment to such alarge workforce. Going by the logic of liberalisation itself, the

government in turn ought to formulate, promote and encouragepolicies that sustain this employment. Government has to ensurea 'level playing field' for this sector towards healthy competitionamong the different sub-sectors of textile industry.

The following are aspects that require immediate attention:

1. Raw Material supply

Access to raw material such as yarn, dyes and dyestuffs hasbecome a problem. Weaving is a rural and semi-rural productionactivity and weavers have to go far to get these raw materials. Totop it off, yarn prices are steadily increasing. As a result, there is aperennial shortage of yarn for the weavers. Despite a fewschemes, the hank yarn access issue has not been resolved.

2. Raw material pricesHandloom primarily uses natural fibres such as cotton, silk and

jute. Prices of these fibres have been increasing duringproduction and processing. Cotton production in India isexpensive because of intensive and high usage of costlyagricultural inputs such as pesticides and fertilisers. Secondly,while the fibre production most often happens in the vicinity of the


12/21

weavers, their processing is done in distant areas, and as suchthe prices to the weaver are higher.

3. Infrastructure and Investment

Investment in handloom sector has thus far been limited to inputsupply costs. There is no investment on sectorial growth. Whilethere have been some piece-meal projects such as work shed-cum-housing and project package schemes, they merelyperpetuate the existing conditions. There has been no thinking onbasic requirements of the producer. Facilities such as land, waterand electricity need to be provided in many places that are aharbor for handloom manufacturing. On the other hand, powerlooms are getting more usable support from the government inprocuring land, water and electricity.

4. Design improvementsWhile there are suggestions that handloom sector shouldincrease its design in response to changes in the market, thebottlenecks are many. The lack of change is not due to theweaver not being amenable to change, as is bandied. Rather, it isdue to unwillingness of the investor to take

risks and provide incentive to weavers for effecting the change.

5. Market for productsHandloom products require more visibility. This means better andwider market network. One-off exhibitions organised with thesupport of government do not suffice.

6. Patenting designs/varietiesHandloom designs are not protected. As a result, investors arenot interested lest they end up with the risk and those who copythe benefits. Protection options include development ofhandloom/silk/jute marks and registration under GeographicalIndications Act.

7. Free export/import trade - opportunity


13/21

Post the WTO Agreement on Textile Clothing, there is going to bemore free export and import of textiles. The handloom sector, as atraditional area, can claim some special packages ordiscriminatory measures, to protect this kind of production.

8. Cooperative systemWhile cooperatives do help in maximizing the benefits for weaversin the entire chain of production, their present condition a cause ofconcern. The handloom cooperative system is riddled withcorruption and political interference. Cooperatives have tobecome independent of district-level government officers in termsof management and decision-making

9. Intermediaries (individuals/institutions)Government has created a few research, training and inputinstitutions to help the handloom sector. These institutions includeweaver service centers, institutions of handloom technology,NIFT, etc. But their performance has been below par and theirpresence has not helped inObviating the problems of handloom weavers.

10. Budget allocationsAllocations for handloom in national and state budgets are beingreduced. This has to be reversed. Budget has to increase withnew schemes which address the problems of the sector, in viewof the linkage and the need to protect rural employment.

11. Enhancement of ValueThere is a need for enhancing the value of handloom productsthrough utilisation of organic cotton and organic yarn, applicationof natural dyes and by increasing the productivity of the loomsthrough research and innovation for example, changes in thewidth of the looms and some appropriate technical changes.

12. Competition and unfair competition from mills andpowerlooms


14/21

Competition is now uneven, with mill and powerloom sectorgetting subsidies in various forms. Secondly, power looms havebeen undermining handloom markets by selling their products ashandloom.

13. Wages, employment and livelihood issuesWages have not increased in the last 15 years. Some sections ofhandloom weavers are living in hand-to-mouth conditions, with nohouse or assets. These issues need to be addressed by thegovernment; at least effectively implement the Minimum WagesAct.

PESTLE is an acronym for

Political, Economic, Social, Technological, Legal and Environmental factors,Which are used to assess the market for a business or

organizational unit strategic plan.

POLITICAL FACTOR AFFECTING:

Presently , handloom weavers are facing several livehood crisisbecause of adverse government policies , golbalisation andchanging socio , economic condition .Government have been extremely adverse retrograde and

determinental to interest of the handloom weavers

Government polocies are increasing influenced by theglobalization process induced trade regimes. Control on exportget liberalized abd the domestic market become open to importthe textile scenario in the country is likely to undergo drasticchange in term of skills , input like design , market trend andchanging demand therein . Government has created a few


15/21

research timing and input unstitution to help the handloom sectorbut their performance has been below par and their presencehad not helped in obviating the problem of handloom weaver.Presently their no subsidies for handloom sector .They are

completely withdrawn . Government has to spread the caste andprofrssional dimensions of handloom sector .

Government has to recognize the role of different communities inthe handloom sector and allocate fund appropriately .

ECONOMIC and SOCIAL FACTOR AFFECTING:The Handloom sector plays a very important role in the countrys

economy. It is one of the largest economic activities providingdirect employment to over 65 lakhs persons engaged in weavingand allied activities. As a result of effective Governmentintervention through financial assistance and implementation ofvarious developmental and welfare schemes, this sector has beenable to withstand competition from the power loom and millsectors. This sector contributes nearly 19% of the total clothproduced in the country and also adds substantially to exportearnings. Handloom is unparalleled in its flexibility and versatility,

permitting experimentation and encouraging innovations. Thestrength of Handloom lies in the introducing innovative designs,which cannot be replicated by the Power loom sector. Thus,Handloom forms a part of the heritage of India and exemplifiesthe richness and diversity of our country and the artistry of theweavers.

Technological factor effecting

Hand weaving has been associated, especially in the post-Independentpolicy formulations, with notions of cultural heritage, ancient,traditional industry in the country. In this rhetoric, its significance asan indigenous technology was often forgotten. On the basis of their


16/21

structure, handlooms can be divided into a) primitive looms, b) pit looms throw shuttle and fly shuttle - and c) frame looms*. In the name oftechnologicalupgradation, since early Five Year Plans, it was envisaged to convert pit

looms into frame looms. Nevertheless, such conversion should take intoaccount the increase in the amountof cloth woven, for frame looms are capable of weaving greater volumesthan pit looms and the possibility of marketing this. The greatestdisadvantage of frame loom is that it occupies more space and is noteasy to operate due to increased vibrations while weaving. Moreover, italso costs much more than a pit loom. Pit loom has the advantage ofsaving space, less expensive and more health friendly. Besides, only pitlooms are 122capable of making sarees of finer counts with intricate extra weft

patterns. Since 1985, technological upgradation of handlooms has beensynonymous with the conversion of handlooms into powerlooms.

Nonetheless, a detailed study of the impact of such a conversion onlabour involved in handlooms, the infrastructure required, channels ofmarketing the increased volume of cloth produced, rehabilitation of theaffected handloom weavers, has never been paid heed. Any conversion,in the name of

modernization or technological upgradation, should have the welfare ofthe weavers as their paramount goal.

Environmental factor effectingSoon after India's independence the Congress Party constituted theEconomic Programmes Committee to provide a broad direction to theCongress Governments at the Centre and State levels. The Committee,headed by Jawaharlal Nehru,15 reported in January 1948.Industries producing articles of food and clothing and other consumergoods should constitute the decentralized sector of Indian economy andshould, as far as possible, be developed and run on a cooperative basis.Such industries should for most of the part be run on cottage and smallscale basis.


17/21

This was a large area earmarked for rural, cooperative and small scaleindustries.The general direction indicated for state intervention was for imposingrestrictions on large scale manufacturing of most consumer goods while

extending support to traditional systems of production.

And yet, it is not likely that foreign trade occupied a major

part of the textile economy within Indias economy at any

time before 1850. At the end of the eighteenth century,

cloth export from India amounted to about 50 million

yards1, whereas total production within India could not

have been smaller than 1800-2000 million yards.Unfortunately, we know far more about the segment of

textile production that traded abroad, thanks to European

trade records, than about the segment that traded locally

and overland.

Legalfactor effecting

Handloom weavers are facing severe livelihood crisis because ofadverse government policies, globalisation and changing socio-economic conditions. The national and state governments dohave several schemes pertaining to production inputs, marketsupport and development, meant to safeguard the interests of theweaving community. Ineffective implementation of the schemesand the changed context of textile industry, increasing competitionfrom the power loom and mill sectors have been largelyresponsible for the crisis in the handlooms.

Lack of information to weavers regarding various policies andschemes is no less a significant cause for the dwindling fortunesof the weaver community. Even government departments andimplementing agencies related to handloom suffer frominadequate information and data resulting in a widening gap


18/21

between policy formulation and implementation. In the recentdecades, due to lack of information and fast paced changes,practices in handloom sector became static and apparentlyredundant.

CONCLUSION:

The Handloom Textiles constitute a timeless part of the richcultural Heritage of India. The element of art and craft present inIndian handlooms makes it a potential sector for the uppersegments of market domestic as well as global. However, the

sector is beset with manifold problems such as obsoletetechnologies, unorganized production system, low productivity,inadequate working capital, conventional product range, weakmarketing link, overall stagnation of production and sales and,above all, competition from power loom and mill sector. As aresult of effective Government intervention through financialassistance and implementation of various developmental andwelfare schemes, the handloom sector, to some extent, has beenable to tide over these disadvantages. Thus, Handloom forms a

precious part of the generational legacy and Exemplifies therichness and diversity of our country and the artistry of theweavers.

REFERENCE:

1. texmin.nic.in/annualrep/2. apparel.indiamart.com/industry/handlooms/3. www.hepcindia.com4. texmin.nic.in/tex_07.htm5. www.ieport.com/epc.htm6. www.indiatogether.org/2009/dec/eco-handloom.htm
http://www.indiatogether.org/2009/dec/eco-handloom.htmhttp://www.indiatogether.org/2009/dec/eco-handloom.htm


19/21

7.indiaMBA.com

Article

The penultimate article titled Ericulture as a Remedy of RuralPoverty in Assam: A Micro Level Study in Barpeta

District by Utpal Kumar De and Manjit Das highlights the roleplayed by ericulture and endi-entrepreneurship in mitigating ruralpoverty and unemployment in Assam over a long period of time.Ericulture is however not growing at a faster rate due to the lack

of capital of the eri rearers and that of the common weavers thatprohibits technological invention and innovation. Moreover, theprofit rate is not sufficiently high due to lack of organization ofthe rearers and weavers and hence their poor bargaining power.Ericulture generates employment for a large number ofunemployed people, especially for women, partially or fully in itsvarious stages of activities; despite the significant rise in totalnumber of families engaged in ericulture during 1991 to 2005, itsshare to total workforce declined due to relatively faster growth

of other (tertiary) sectors of the economy. The article concludesby observing that endi-entrepreneurship is very important fromthe point of employment and income generation, which increasethe contribution of ericulture substantially. Further, as ericultureis totally manned by tribal women, it not only helps the familiesby contributing to income but also provides protein full pupae totheir children and other family members.


20/21


21/21

1 M.J. Twomey, Employment in Nineteenth Century Indian Textiles, Explorations in EconomicHistory, 20 (1983), pp. 37-57.

Term Paper On business inviroment

Documents

Transcript of Term Paper On business inviroment