what measures would you suggest to overcome the problems of Ahmadebad cotton textile industry
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Gujarat:
Gujarat is the second largest producer of cotton textiles. This state accounts for over 33 per cent of the mill cloth and over 8 per cent of the yam production of the country. Ahmedabad is the largest centre where 73 out of 118 mills of Gujarat are located. Ahmedabad is the second largest centre of cotton textile industry after Mumbai. Following facilities are available to Ahmedabad:
(i) Ahmedabad lies near the main cotton belt of India and there is no problem of obtaining raw cotton.
(ii) Climate is humid and is suited to this industry.
(iii) Cheap power is readily available.
(iv) Cheap and skilled labour is drawn from the nearby areas.
(v) Ahmedabad is served by a network of railways and roadways.
(vi) Land at Ahmedabad is much cheaper as compared to that in Mumbai.
(vii) Most of Ahmedabad mills produce cheap cloth which finds a ready market among the poor masses of India.
Still further macro level remedial steps have to be taken. The major ones being: (i) Retirement of unviable capacity through partial or full closure with a suitable scheme for taking care of the human problem (ii) Evolving a rational labour policy relating to wages, employment and modernisation (iii) Restoring equality of competition between various sectors by removing direct and indirect subsidies, etc. (iv) Locational cost disadvantages should either be neutralised or the industry allowed to shift (v) Cost of modernistion to be brought down thorough a change in the rate of interest and duties on machinery (vi) Ensuring reasonable and stable raw material prices through price stabilisation operated by C.C.I. (vii) A dynamic programme to achieve international competitiveness and thrust for exports At the unit level, managerial actions will have to be taken in the following areas: (i) A clear view of the turn-around strategy by relating product strengths to market movements (ii) Tight-fisted control on costs and productivity. Tough minded approach to labour productivity. (iii) Market diversification through exports and tapping of the readymade garment market While the unit implements such a strategy in the new environment,
Gujarat is the second largest producer of cotton textiles. This state accounts for over 33 per cent of the mill cloth and over 8 per cent of the yam production of the country. Ahmedabad is the largest centre where 73 out of 118 mills of Gujarat are located. Ahmedabad is the second largest centre of cotton textile industry after Mumbai. Following facilities are available to Ahmedabad:
(i) Ahmedabad lies near the main cotton belt of India and there is no problem of obtaining raw cotton.
(ii) Climate is humid and is suited to this industry.
(iii) Cheap power is readily available.
(iv) Cheap and skilled labour is drawn from the nearby areas.
(v) Ahmedabad is served by a network of railways and roadways.
(vi) Land at Ahmedabad is much cheaper as compared to that in Mumbai.
(vii) Most of Ahmedabad mills produce cheap cloth which finds a ready market among the poor masses of India.
Still further macro level remedial steps have to be taken. The major ones being: (i) Retirement of unviable capacity through partial or full closure with a suitable scheme for taking care of the human problem (ii) Evolving a rational labour policy relating to wages, employment and modernisation (iii) Restoring equality of competition between various sectors by removing direct and indirect subsidies, etc. (iv) Locational cost disadvantages should either be neutralised or the industry allowed to shift (v) Cost of modernistion to be brought down thorough a change in the rate of interest and duties on machinery (vi) Ensuring reasonable and stable raw material prices through price stabilisation operated by C.C.I. (vii) A dynamic programme to achieve international competitiveness and thrust for exports At the unit level, managerial actions will have to be taken in the following areas: (i) A clear view of the turn-around strategy by relating product strengths to market movements (ii) Tight-fisted control on costs and productivity. Tough minded approach to labour productivity. (iii) Market diversification through exports and tapping of the readymade garment market While the unit implements such a strategy in the new environment,
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