The textile industry in India is estimated to produce 14% of India’s total production output; and a further 30% in the countries total exports. They are a number of factors that can affect the economic aspects of the textile industry. Some of which include: national income, infrastructure development, industrial development, per capita income, capital formation, employment generation, availability of raw materials & their cost, the ability to move resources and exploitation of natural resources. Furthermore the textile industry is also influenced by agriculture due to the cultivation of cotton which is a necessary raw ingredient in textile manufacturing process.
For a long time the efficiency of India’s textile industry has been questioned. This has led to the formations of various bodies, whose aim to overhaul certain aspects of the textile industry in India. Some of which include: Technology Mission on Cotton (TMC), Technology Upgradation fund Scheme (TUFS), Scheme for Integrated Textile Park (SITP), reduction in customs duty on import of state-of-the-art machinery, Debt Restructuring Scheme and Apparel Training and Design Centres (ATDCs).
The reason these bodies were formed was to tackle issues the Indian government thought needed to be addressed. They identified the following weaknesses:
1. Structural weaknesses in weaving and processing
2. Technologically backward textile processing sector
3. Split garment industry
4. Insufficient capability of the domestic textile machinery in the manufacturing sector
5. Scarce training facilities in textile sector.
Pakistan is a country that has been in political instability for over 50 years. This has had an impact on the textile industry as it would in any other country. The textile industry in Pakistan is the fastest growing industry; this led to the formation of the BMR (Balancing, Modernization and Replacement) program. The purpose of the BMR is to provide loans to new businesses under concessionary rates.
Furthermore the Chamber of Commerce developed various other incentives such as; textile manufacturing cities, a reduction in import taxes and a reduction in turn over tax.
They are various social factors that have to be considered before implementing anything with in Pakistan. Firstly Pakistan is a predominantly Muslim country, meaning the certain things that may be norms in the west but outrageous in Pakistan. To gain support from the locals it’s a good idea respect their religious views and work around them.
Population growth is also another social factor that allows employers to take advantage of low labour cost; however employers have to spend time and money on training these unskilled employees.
Lastly it is crucial to look at customer tendencies to understand what they are likely to consume. Recently Pakistani citizens are more concerned with the quality of their products which has led many of them to begin buying international brands. Furthermore inflation with in Pakistan has resulted in a change of tendencies for the lower class as well.
They are various environmental factors, which could be hazardous to the textile industry in Indonesia if not addressed. Because of Indonesia’s geographical location they are faced with several natural disasters of high amplitudes. On several occasions, Indonesia has been rocked with earthquakes up to a magnitude of 9.0 on the Richter scale. Also because Indonesia is surrounded by oceans they are also susceptible to tsunamis and flooding which can critically set the textile industry behind.
The country itself is also very vast consisting of 13,667 islands; which host rain forests, steaming mangrove swamps, arid plains and snow-capped mountains. All of these geographical factors play a part in how the textile industry was formed and developed in Indonesia.
Indonesia just like any other country has regulations that govern how production, employment and various things are to be carried out. Labour laws article 28D (2) states that 7 hour workdays and 40 hour work weeks, with one 30-minute rest period for each 4 hours of work is legal in Indonesia. Furthermore one day of rest weekly is mandatory in Indonesia. In 1992, the government of Indonesia also signed a memorandum making child labour illegal; and the earliest age for work was set at 14 years old.
Environmental laws we are also set by the Indonesia Environmental Agency states Decree Laws. Municipal Noise Reduction Plan (MNRP) has noise limits in areas of housing occupancy, hospitals, schools, and religious buildings (Inter Noise, 2007).