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2) World Textile Industry

The World Trade Organization (WTO) has taken so many steps for uplifting this sector. In the year 1995, WTO had renewed its MFA and adopted Agreement on Textiles and Clothing (ATC), which states that all quotas on textile and clothing will be removed among WTO member countries.

However the level of exports in textiles from developing countries is increasing even if in the presence of high tariffs and quantitative restrictions by economically developed countries.

Moreover the role of multifunctional textiles, eco-textiles, e-textiles and customized textiles are considered as the future of textile industry. High production of wool, cotton and silk over the world has boosted the industry in recent years. Though the industry was started in UK, still in 19th Century the textile production passed to Europe and North America after mechanization process in those areas. From time to time Japan, China and India took part in industrializing their economies and concentrated more in that sector. Japan, India, Hong Kong and China became leading producers due to their cheap labor supply, which is an important factor for the industry.

United States
The United States followed the British lead, using stolen blueprints and illegally immigrating engineers. Samuel Slater (1768-1835) of Rhode Island pulled American cotton-spinning technology by constructing carding, drawing, and roving machinery, and by determining the operating and gearing ratios necessary to use water power. By 1850 the American had built their own industrial revolutions around textiles, and use of abundant water power in New England.

Asia
Hall, (1996) argues that between 1400 and 1800, South Asian textile production adapted to economic and cultural cycles and was never displaced by cheaper or higher-quality foreign imports, coming mainly from India. The example of Bandjarmasin, an important Borneo port, demonstrates the dynamic between upstream and downstream communities in a changing economy, the role of the arrival of Islam in the islands of Southeast Asia, and the interplay of international trade and the local textile industry. The growing European presence in the region was only one factor in the developments during this period.

Japan
The development of light industry, chiefly cotton spinning and other textiles, was the prototype of the large, modern corporate enterprise in Japan. Central to these firms' development was the practice of promoting from within, particularly in the case of top-level directorships, and the allocation of resources to the factory. Despite static markets and slow distribution processes, organic

understanding of market demands and the threatened competition of Western enterprises forced companies to develop efficient organizations and product diversification, leading major firms toward successful prewar growth. Park and Kym (1991) study the rise and fall of the Japanese textile industry between 1874 and 1985. Producers of textiles and clothing in advanced industrial economies were the first large group of manufacturers who went into a decline as a result of import competition from newly industrializing economies. Because of the intensive use of unskilled labor in the textile industries and the relative scarcity of such labor in more advanced economies, the advantage inheres in undeveloped countries. Tsurumi, (1988) and Tsurumi, (1990)discusses the role of Japanese women and girls in the silk reeling and cotton spinning industries that were the mainstay of the Japanese industrial revolution beginning in 1868 with the Meiji government. Young women were encouraged to reel silk for the sake of the nation. In the 1870s rich families participated in the industry but severe financial difficulties in a changing government during the 1880's ruined many businesses. Longer hours and a general deterioration of conditions was the general trend in the silk reeling industry. Distressing songs relate the plight of the young women who left their homes not for the good of the country but out of necessity for economic survival. These women's families made up 83% of the population but received only 50% of the country's household income.

China
In 1890 the first cotton textile factory was established in China, marking the beginning of textile modernization in China. For the period 18901937 China was unable to maintain control over the industry, which for the

most part was controlled by foreign investors. This was due in part to China's lack of capital and managerial knowledge and techniques, which were supplied by such countries as Japan and Great Britain. However, the industry greatly expanded during this period and had vast influence on the Chinese economy. The new factory system resulted in a move from small-scale family production to mass production. It also accelerated urbanization since the factories required concentrated masses of laborers. Chinese cotton seed was improved by the importation of American seed. Since the textile industry was the largest in China and employed one-fourth of the labor force, it had repercussions on the traditional society.

India

The "deindustrialization" of the Indian economy and of India's textile industries in particular, is the subject of a major historiographical debate. While some scholars have claimed that colonial rule permanently undermined indigenous production, others have argued that handloom weavers were able to adjust to colonial conditions and therefore carved out new niches for themselves. Hanretty (1991) examines handloom weavers in one part of India, an area that is now Madhya Pradesh, between 1800 and Indian independence in 1947. Eschewing a simplistic attachment to either of the two main positions, Hanretty shows that while handloom weavers as a group faced great competition in the mid-19th century from imported cloths, some specialist producers were able to cope better than others, mainly because of their production of specialized products and the security given them by enhanced caste status. The real challenge came in the 20th century as India's own mills subordinated weavers to middlemen as the former became more dependent on mill-spun yarns. When the British left India in 1947, the economy was only slightly more industrialized than when they had taken formal control nearly one hundred years earlier. Wolcott (1997) asks, were they responsible for the lack of development? Two strains of argument suggest they were. The first, primarily associated with Amiya Bagchi, faults the British for not giving sufficient protection to domestic industries. The second, associated with Morris, faults them for not investing in infrastructure - specifically the capital market and education. This article reexamines the development of cotton textile production, the most important factory industry in colonial India. There is no evidence that any of these factors contributed significantly to the slow interwar growth of the industry. Thus, Wolcott concludes, there is no basis for arguing

that a national government could have speeded up development. The problems were imbedded in the structure of the labor market, beyond the control of any government.

By the end of the 19th century, domestic wool production in India was experiencing a transformation that was largely attributable to colonial rule. Arable land which pastoralists needed for their sheep was becoming less available; hence, wool production tended to become concentrated in areas where there were more opportunities for grazing. Railways were important in helping to transform weaving from a small-scale household-centered activity to larger factory production. Competition from imported wool led to greater specialization in weaving and spinning, and encouraged the production of finer cloth. These transformations, of which the most important seems to be the loss of common grazing lands, have continued in postcolonial India. Shah (2001) examines the growth of an industrial working class in Ahmedabad, chief city of Gujarat. In textiles, the most important industry, new recruits were chiefly lower-caste landless agricultural laborers and handloom weavers - men, women, and children. Despite strikes against long hours and low wages, caste identity remained strong, and stable, effective trade unions were not achieved.

(2.3) Indian Textile Industry


Until the economic liberalization of Indian economy, the Indian Textile Industry was predominantly unorganized industry. The opening up of Indian economy post 1990s led to a stupendous growth of this industry. India Textile Industry is one of the largest textile industries in the world. Today, Indian economy is largely dependent on textile manufacturing and exports. India earns around 27% of the foreign exchange from exports of textiles. Further, India Textile Industry contributes about 14% of the total industrial production of India. Furthermore, its contribution to the gross domestic product of India is around 3% and the numbers are steadily increasing. India Textile Industry involves around 35 million workers directly and it accounts for 21% of the total employment generated in the economy.

Strengths of Indian Textile Industry are as follows -

Huge textile production capacity Efficient multi-fiber raw material manufacturing capacity Large pool of skilled and cheap work force Entrepreneurial skills Huge export potential Large domestic market Very low import content

Flexible textile manufacturing systems

Weaknesses of Indian Textile Industry are as follows

Increased global competition in the post 2005 trade regime under WTO Imports of cheap textiles from other Asian neighbors Use of outdated manufacturing technology Poor supply chain management Huge unorganized and decentralized sector High production cost with respect to other Asian competitors The Ministry of Textiles under the Government of India has

taken some significant steps to arrest these problems. It has framed "The National Textile Policy 2000" to address the aforesaid issues. This policy aims at negating these problems and increasing the foreign exchange earnings to the tune of US$ 50 billion by the year 2010. It includes rational road-maps for the development and promotion of all the sectors involved

directly or indirectly with the textile industry of India. Further, the policy also envisages bringing the unorganized decentralized textile sector (which accounts for 76% of textile production) at par with the organized mill sector. Furthermore, the policy also aims at introducing modern and efficient manufacturing machineries and techniques in the Indian textile sector.

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