describe any 5 major problems faced by cotton textiles industry in india ?
Answers
Answered by
4
Cotton Industry Problem # 1. Problem of Organisation:
Being essentially Indian in origin, cotton industry was started, financed, and managed by textile magnates who combined their traditional commercial activities with new industrial enterprise through a unique system of industrial management—the Managing Agency System (MAS).
Of course, this provided the constant inflow of the commercial capital in the industry through its ‘commercial nexus’ but, at the same time, the system had retarded the growth of the ‘industrial specialists’.
It was observed that the managing agents were more interested in speculative company promotion and quick commercial profits than in long-term industrial development. The system also helped concentration of control and hindered efficient management. Further, the system developed what may be called the dynastic domination.
Most of them did not have managerial leadership and technical knowledge except the financial capability. The result was the frequent changes of managing agents and liquidation of the companies on the one hand, and the oligarchic concentration of the mills to a few agency firms on the other hand. This can be evidenced from the following information: out of 97 mills of Bombay during 1851 and 1925, only 24 mills retained the management of the mills in the hands of the original agency firms, 15 mills were burnt and dismantled, 45 mills went into liquidation.
However, Morris D. Morris observes: There is no basis for saying that the mercantile origins of entrepreneurs in the cotton industry affected either the general rate of growth or the industry’s independent adaptability of technology.
Cotton Industry Problem # 2. Competition with British and Japanese Machine-made Cloth:
The Indian cotton textile industry had to face stiff competition from Britain’s most internationally aggressive cotton industry. And, in the process, British industry suffered a lot at the hands of the Indian industry. But some events of the 1920s eroded the competitiveness of the Indian industry.
After the end of the World War I, Japanese exports of cloth to India acted as a big threat to the Indian industry though such Japanese exports were held in check in the 1920s. But it reappeared after 1930 despite a high tariff rate of 50 p.c.
Cotton Industry Problem # 3. Problems of Labour:
Most of the labourers of the cotton mills were unsophisticated in the sense that they were recruited from the small peasants and agricultural labourers. As a result, permanent textile labour force could not arise. Above all, they maintained ‘village nexus’ with their home village so as to return to their home land when the situation demanded.
It is true that such ‘village nexus’ of the labour force could be attributed to the successive development of this industry maintaining the constant supply of mild, unorganised and lowly paid labour. But the growth of a permanent, organised, and skilled labour force had been badly hampered. Before the World War I, low cost of labour was considered to be the important cause for the expansion of the industry. After the World War I, wage index rose to a great height. Labour indiscipline was nonetheless unimportant.
A series of strikes swept over this crucial industry in the early 1890s, 1901, and 1908 for higher wage deal. No doubt Indian labour efficiency was comparable to Britain. Indian Tariff Board in 1932 observed that the Indian workers’ efficiency in finer varieties of cloth had improved over time in relation to Britain. But so far ‘as coarser products were concerned, efficiency of the Japanese labour was undoubtedly the best.
In fact, it was due to the lower efficiency of Indian labour automatic looms came late in India in relation to Japan. Because of severe demand-supply gap consequent upon famine, plague and increased competition in the China market (between 1893 and the beginning of the World War I), Bombay mill owners could not enthuse themselves in innovating production technology in the late 19th century. In fact, they ‘stuck to an inappropriate and less productive type of spinning machinery (mules rather than ring spindles) for much longer than their rivals in Japan.’
Cotton Industry Problem # 4. Machinery and Technology:
Textile machinery and technology used in this industry were imported before the World War I and it continued till the outbreak of the World War II. However, India could not procure modern equipment’s from America and Japan because technology of the cotton textile industry was heavily Manchester-biased.
Cotton Industry Problem # 5. Absence of Linkage Effects:
Indian cotton textile industry could not become a leading industry as it lacked various linkage effects. For instance, textile machinery was unavailable in India—all of this machinery was heavily import-dependent. Further, Indian industrialists did not put much importance on having a skilled labour force.
Being essentially Indian in origin, cotton industry was started, financed, and managed by textile magnates who combined their traditional commercial activities with new industrial enterprise through a unique system of industrial management—the Managing Agency System (MAS).
Of course, this provided the constant inflow of the commercial capital in the industry through its ‘commercial nexus’ but, at the same time, the system had retarded the growth of the ‘industrial specialists’.
It was observed that the managing agents were more interested in speculative company promotion and quick commercial profits than in long-term industrial development. The system also helped concentration of control and hindered efficient management. Further, the system developed what may be called the dynastic domination.
Most of them did not have managerial leadership and technical knowledge except the financial capability. The result was the frequent changes of managing agents and liquidation of the companies on the one hand, and the oligarchic concentration of the mills to a few agency firms on the other hand. This can be evidenced from the following information: out of 97 mills of Bombay during 1851 and 1925, only 24 mills retained the management of the mills in the hands of the original agency firms, 15 mills were burnt and dismantled, 45 mills went into liquidation.
However, Morris D. Morris observes: There is no basis for saying that the mercantile origins of entrepreneurs in the cotton industry affected either the general rate of growth or the industry’s independent adaptability of technology.
Cotton Industry Problem # 2. Competition with British and Japanese Machine-made Cloth:
The Indian cotton textile industry had to face stiff competition from Britain’s most internationally aggressive cotton industry. And, in the process, British industry suffered a lot at the hands of the Indian industry. But some events of the 1920s eroded the competitiveness of the Indian industry.
After the end of the World War I, Japanese exports of cloth to India acted as a big threat to the Indian industry though such Japanese exports were held in check in the 1920s. But it reappeared after 1930 despite a high tariff rate of 50 p.c.
Cotton Industry Problem # 3. Problems of Labour:
Most of the labourers of the cotton mills were unsophisticated in the sense that they were recruited from the small peasants and agricultural labourers. As a result, permanent textile labour force could not arise. Above all, they maintained ‘village nexus’ with their home village so as to return to their home land when the situation demanded.
It is true that such ‘village nexus’ of the labour force could be attributed to the successive development of this industry maintaining the constant supply of mild, unorganised and lowly paid labour. But the growth of a permanent, organised, and skilled labour force had been badly hampered. Before the World War I, low cost of labour was considered to be the important cause for the expansion of the industry. After the World War I, wage index rose to a great height. Labour indiscipline was nonetheless unimportant.
A series of strikes swept over this crucial industry in the early 1890s, 1901, and 1908 for higher wage deal. No doubt Indian labour efficiency was comparable to Britain. Indian Tariff Board in 1932 observed that the Indian workers’ efficiency in finer varieties of cloth had improved over time in relation to Britain. But so far ‘as coarser products were concerned, efficiency of the Japanese labour was undoubtedly the best.
In fact, it was due to the lower efficiency of Indian labour automatic looms came late in India in relation to Japan. Because of severe demand-supply gap consequent upon famine, plague and increased competition in the China market (between 1893 and the beginning of the World War I), Bombay mill owners could not enthuse themselves in innovating production technology in the late 19th century. In fact, they ‘stuck to an inappropriate and less productive type of spinning machinery (mules rather than ring spindles) for much longer than their rivals in Japan.’
Cotton Industry Problem # 4. Machinery and Technology:
Textile machinery and technology used in this industry were imported before the World War I and it continued till the outbreak of the World War II. However, India could not procure modern equipment’s from America and Japan because technology of the cotton textile industry was heavily Manchester-biased.
Cotton Industry Problem # 5. Absence of Linkage Effects:
Indian cotton textile industry could not become a leading industry as it lacked various linkage effects. For instance, textile machinery was unavailable in India—all of this machinery was heavily import-dependent. Further, Indian industrialists did not put much importance on having a skilled labour force.
Answered by
4
Answer:
Three problems faced by cotten textile industries in India are as follows :
(i) power supply is erratic and machineries are back dated.
(ii) Out put of labour is low.
(iii) Facing stiff competition with the synthetic fibre industry.
Hope it helps you dear.....
Similar questions