Ashna Sisodia is teaching live on Unacademy Plus
Course: Expected Questions Geo-Mains Paper GS- 1 Presented by Ashna Sisodia
Question 48: The crisis ridden textile sector, being labour intensive, should have been an ideal candidate for a push as part of the Prime Minister's pet 'Make in India' initiative Critically comment. (200 Words)
Answer India's textile sector is one of the major industry and has generated huge employment for both skilled and unskilled labor in both rural and urban areas. The importance of textile sector is characterize by strong base for production of raw materials and availability of labor at low costs. With effective implementation of sector related policies, substantial financial support from government and creation of investment opportunities, it has immense potential to contribute significantly in 'Make in India' program. The main reasons for textile industry who must have been leader in 'Make in India' initiative' are: 1. Capacity and comparative advantage India has second largest manufacturing capacity globally. The textile sector in India enjoys a comparative advantage in terms of skilled manpower and cost of production over major textile producers. Through active participation in initiative, it'll enhance revenue earnings.
2. Employment opportunities: Both in urban and rural areas, the availability of workers in concerned sector provides a platform to investors to utilize market facilities and contribute to significantly in production process. Thus, making their product in India has more benefits at low cost of production 3. Trade policies Favorable trade policies and superior quality will drive textile exports. It'll help in boosting export earnings and minimizing current account deficit. Also, 100% FDI is allowed under automatic route in textile sector in welcome step . Government must ensure to actively participate in different multinational forums 4. Technology: Increase use of advanced technologies and better access to various innovative practices will help sector. The handloom sector needs more investment and proper management by government as well as private entities.
However, their persists significant challenges on path towards its bigger responsibilities 1. Mismatch in sector: There are some large and modern factories in these segments, but most of production is in fragmented small units , which cater to local market. This mismatch is major drawback to industry. India is unable to diversify. 2. Labor laws: Rigid labor laws and inflexibleness in their reforms process is major hurdle which is obstructing the growth of industry below its potential 3. High rates : Cost of cotton production is lower in India. However, due to improper management by state agencies and other vested interests, the rates of Indian cotton products are charged high in global market which hurt the export competitiveness of cotton produced in India. 4. Erratic power supply: Power supply to most textile mills is inadequate which adversely affects its production. Thus, the opportunities and dynamic capabilities existing in textile sector is immense which can contribute substantially to 'Make in India'. However, the challenges and pending issues must be resolved to realize its full potential in PM's pet initiative.
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