Talking about manufacturing, importing and exporting business, India leads in all of these. India's skilled artistry manufactures and exports a great variety of products, which make a sound market offshore.
Some of the major areas which see India as manufacturing and exporting are:-
Chemical Industry- Chemical industry makes a major part of the Indian economy, contributing around 7% of the Indian GDP. India is inextricably associated with major chemical manufacturing, then whether it deals with drugs used in medicines, soap and toiletries, paints and dyes or varied kinds of pesticides. These advancements and accomplishments have forced India to take more initiative in the field and embrace the competition squarely.
Home Furnishing goods- Manufacturing of household items like linen, tapestry, cushions, curtains, etc., isn't a one nations' stance. India however dominates the field by designing exceptional textile items that speak their value. The weaving, knitting and spinning structure of these home furnishing goods showcase India's ethnic and artistic design pattern that has made a special place around the globe. India earns a handsome amount with the manufacture and export of Bed Linen, Table Linen, Toilet and Kitchen Linen, Curtains, Carpet and Floor Coverings, and other clothing accessories.
Agriculture Industry- India's economy is diverse, with agriculture being its foundation. India exports a large chunk from its agriculture stock, and many items are heartily appreciated in the global market. Few items that reach out to global audience straight from India's farms are Tea, Sugar, Spices, Wheat, Rice, Tobacco, Marine Products among others.
Apparel and Textile Industry- Apparel industry has a special place in India's manufacturing and exporting list. After agriculture, textile industry sees India perhaps, as the second largest hub of exporting to other nations. If surveys are to be believed, Indian textile industry makes about 30% of the total exports! Experts opine that keeping in view the ever increasing demand of Indian apparel and textile industry, the role of this sector is bound to increase.
Indian Jewelry- Indian jewelry sector is entirely credited to the ancient Indian culture and civilization. The exceptional jewels and gems that India has under its lap, clubbed with the stupendous artwork, makes it famous in the global market. India exports gems and jewelry to United States, UAE, Hong Kong, Singapore, Belgium, among others countries.
Discussed above were the few areas where India has shown its mettle in manufacturing and export arena. The Indian export industry is vast and caters to a wide market. Like any other country, a large part of India's economy is dependent on its exporting.
Tuesday, August 17, 2010
Analysis of China's Dyestuff Industry
Output growth in China's dyestuff industry had slowed down in 2007, but growth quality had improved. Total export and import volume amounted to 351,400 tons, up 10.09% over previous comparable period (pcp), and total value was US$1.45 billion, up 20.3% over pcp. It is expected that in 2008, output growth of the dyestuff industry in China will remain stable or even slow down, but export volume may continue to increase.
2007: Slower growth but quality improved
Although total dyestuff output still registered a growth of 10.8% in 2007, the growth rate had declined 1.3 percentage points from the previous year. Statistics showed that output of all dyestuff varieties had grown in 2007, with disperse dyes, reactive dyes and sulphur dyes being the top three largest categories. In terms of output sources, provinces such as Shandong, Inner Mongolia, Zhejiang and Guangdong registered significant growth, and Zhejiang Province remained the number one dyestuff source in China.
Both export volume and performance had improved in 2007. China exported a record total of 284,000 tons of dyestuff last year, up 13% from 2006, and total export value reached US$1.004 billion, up 25%, a notable improvement from previous years. Among the dyestuff categories, disperse dyes, reactive dyes, vat dyes and sulphur dyes were popular export items.
Among major dyestuff exporting provinces, Hebei, Guangdong, Jiangsu and Shanxi had all experienced 20% plus growth rates. Zhejiang continued to be the biggest exporter of dyestuff, exporting 112,000 tons from China, equivalent to 39.4% of the national total.
In terms of destinations, Chinese dyestuff exports to Thailand, Korea, India and Taiwan were growing fast. US was the only destination which had seen a reduced volume, but the trade value still increased somehow.
On the other hand, China's dyestuff imports had steadily declined in 2007. Total dyestuff imports amounted to 67,000 tons, down 0.9% from previous year, while the monetary value remained flat at US$442 million. The reduced number of imports does not necessarily mean reduced market demand, but the substitution by the fast growing domestic dyestuff industry. In terms of product mix, major import categories had all experienced decline, including reactive dyes, acid dyes and direct dyes.
The negative effects from the removal of export rebates had alleviated at the year end. Since 1st July 2007, China had reduced its dyestuff export rebates from 13% to 0%, leading to export price increases of 10 - 15%. The effect was evident in July and August, with immediate reduction of export orders. But the situation was returning to normal levels since October, which had largely offset the impact on domestic dyestuff manufacturers. And the removal of export rebates had not significantly impacted on the volume of dyestuff exports, either.
On abolishing of export rebates and lifting export prices, the price level of Chinese dyestuff in the international market is now similar to prices levels of other Asian dyestuff exports, but still a bit lower than European and American products. Despite the reduced price advantage, the product quality and market shares of Chinese dyestuff have improved considerably.
2008: A steady trend
Several factors may negatively affect the dyestuff industry in China in 2008, including government macro policy, production cost increase, environmental pressure and global economic uncertainty. The following aspects should warrant some attention from dyestuff producers.
Speed up the pre-registration process under the European REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulation, which aims to more strictly regulate the trading of chemical substances. There is a short timeframe (June - December 2008) for pre-registration, so dyestuff exporters in China have to take quick actions, in order to fully pre-register all the relevant product lines. And the China Dyestuff Industry Association should also facilitate the process for exporters, so that the impact from implementation of REACH regulation can be reduced to a minimum.
There are three benefits for dyestuff products in China to go through the pre-registration process. First is the inexpensive pre-registration fee, which can ensure a company's export permit for 2-10 years. Second is that as the number of pre-registered products increases, there will be more products available for exports. The last point is that the pre-registration requires a producer's real name and product names and trademarks, which will be circulated in the network of European Chemicals Agency. This can potentially improve the brand recognition for the producer.
Chinese dyestuff companies should also improve product innovation, so that they can establish higher-value brands in the international market. There have been a few leading dyestuff companies in China investing in innovations, product qualities and technological contents, and some production technologies are also in the process of commercialisation.
Lastly, the dyestuff industry in China is now facing more and more environmental constraints. Therefore, companies should invest in researches of wastewater treatment technologies and equipment, and accelerate the development of less-polluting dyestuff production techniques. The whole industry should also encourage environmental technology exchanges and promotions, in order to meet the government's energy efficiency and emission reduction targets in the next 3 years.
2007: Slower growth but quality improved
Although total dyestuff output still registered a growth of 10.8% in 2007, the growth rate had declined 1.3 percentage points from the previous year. Statistics showed that output of all dyestuff varieties had grown in 2007, with disperse dyes, reactive dyes and sulphur dyes being the top three largest categories. In terms of output sources, provinces such as Shandong, Inner Mongolia, Zhejiang and Guangdong registered significant growth, and Zhejiang Province remained the number one dyestuff source in China.
Both export volume and performance had improved in 2007. China exported a record total of 284,000 tons of dyestuff last year, up 13% from 2006, and total export value reached US$1.004 billion, up 25%, a notable improvement from previous years. Among the dyestuff categories, disperse dyes, reactive dyes, vat dyes and sulphur dyes were popular export items.
Among major dyestuff exporting provinces, Hebei, Guangdong, Jiangsu and Shanxi had all experienced 20% plus growth rates. Zhejiang continued to be the biggest exporter of dyestuff, exporting 112,000 tons from China, equivalent to 39.4% of the national total.
In terms of destinations, Chinese dyestuff exports to Thailand, Korea, India and Taiwan were growing fast. US was the only destination which had seen a reduced volume, but the trade value still increased somehow.
On the other hand, China's dyestuff imports had steadily declined in 2007. Total dyestuff imports amounted to 67,000 tons, down 0.9% from previous year, while the monetary value remained flat at US$442 million. The reduced number of imports does not necessarily mean reduced market demand, but the substitution by the fast growing domestic dyestuff industry. In terms of product mix, major import categories had all experienced decline, including reactive dyes, acid dyes and direct dyes.
The negative effects from the removal of export rebates had alleviated at the year end. Since 1st July 2007, China had reduced its dyestuff export rebates from 13% to 0%, leading to export price increases of 10 - 15%. The effect was evident in July and August, with immediate reduction of export orders. But the situation was returning to normal levels since October, which had largely offset the impact on domestic dyestuff manufacturers. And the removal of export rebates had not significantly impacted on the volume of dyestuff exports, either.
On abolishing of export rebates and lifting export prices, the price level of Chinese dyestuff in the international market is now similar to prices levels of other Asian dyestuff exports, but still a bit lower than European and American products. Despite the reduced price advantage, the product quality and market shares of Chinese dyestuff have improved considerably.
2008: A steady trend
Several factors may negatively affect the dyestuff industry in China in 2008, including government macro policy, production cost increase, environmental pressure and global economic uncertainty. The following aspects should warrant some attention from dyestuff producers.
Speed up the pre-registration process under the European REACH (Registration, Evaluation, Authorization and Restriction of Chemicals) regulation, which aims to more strictly regulate the trading of chemical substances. There is a short timeframe (June - December 2008) for pre-registration, so dyestuff exporters in China have to take quick actions, in order to fully pre-register all the relevant product lines. And the China Dyestuff Industry Association should also facilitate the process for exporters, so that the impact from implementation of REACH regulation can be reduced to a minimum.
There are three benefits for dyestuff products in China to go through the pre-registration process. First is the inexpensive pre-registration fee, which can ensure a company's export permit for 2-10 years. Second is that as the number of pre-registered products increases, there will be more products available for exports. The last point is that the pre-registration requires a producer's real name and product names and trademarks, which will be circulated in the network of European Chemicals Agency. This can potentially improve the brand recognition for the producer.
Chinese dyestuff companies should also improve product innovation, so that they can establish higher-value brands in the international market. There have been a few leading dyestuff companies in China investing in innovations, product qualities and technological contents, and some production technologies are also in the process of commercialisation.
Lastly, the dyestuff industry in China is now facing more and more environmental constraints. Therefore, companies should invest in researches of wastewater treatment technologies and equipment, and accelerate the development of less-polluting dyestuff production techniques. The whole industry should also encourage environmental technology exchanges and promotions, in order to meet the government's energy efficiency and emission reduction targets in the next 3 years.
Top Products - Export in India
Before 1991, import and export in India was difficult and was restricted. This was so because the government imposed a heavy custom duty which made it difficult for importers and exporters to do business in India. However, a New Economy Policy of 1991 led to reformation and changes in the import export scenario. The custom charges were reduced which made it convenient for exporters and importers to extend their businesses here. Now in the present scenario, India maintains very good business relation with other countries and exports a number of goods commodities.
Top Export Products in India
When it comes to export business, India can boast of maintaining good business relation with other countries and exports a number of commodities to them. Our country is now one of the popular chemical suppliers and polymer suppliers in the world. Some of the top exports products in India are-
1. Tea
The Darjeeling tea and Assam tea that are grown in India are exported to many other countries in the world. These are grown in the valleys in Darjeeling and Assam are then packed and sold globally. The organic teas produced in India are not only popular within the country but is popular with other nations also.
2. Chemicals
As mentioned before, India is one of the popular chemical suppliers in the world and supplies different kinds of chemical globally. As chemical suppliers, we export bulk chemicals like Melamine, Lactic Acid, Soda Ash etc. We also export Fine and specialties chemical and Fluorine specialties like Sodium Fluoride, Calcium Fluoride etc.
3. Polymers
The Indian economy is popular as polymer suppliers as well and is known to export polymers in different forms. As polymer supplier we export additives and compounds like candle additives and fragrances, commodities and specialties water based PU and also export wax in the form of paraffin wax etc.
4. Paper
As a paper exporter we export different kinds of paper to the countries which includes news prints, coated papers and specialty papers like thermal paper, inkjet paper and NCR paper.
5. Seafood
When it comes to export we also export additives that are used in the seafood industry and non-phosphates like include citric acid, sodium citrate etc. Aqua feeds like shrimp and phosphates are also a part of our popular export product list.
Top Export Products in India
When it comes to export business, India can boast of maintaining good business relation with other countries and exports a number of commodities to them. Our country is now one of the popular chemical suppliers and polymer suppliers in the world. Some of the top exports products in India are-
1. Tea
The Darjeeling tea and Assam tea that are grown in India are exported to many other countries in the world. These are grown in the valleys in Darjeeling and Assam are then packed and sold globally. The organic teas produced in India are not only popular within the country but is popular with other nations also.
2. Chemicals
As mentioned before, India is one of the popular chemical suppliers in the world and supplies different kinds of chemical globally. As chemical suppliers, we export bulk chemicals like Melamine, Lactic Acid, Soda Ash etc. We also export Fine and specialties chemical and Fluorine specialties like Sodium Fluoride, Calcium Fluoride etc.
3. Polymers
The Indian economy is popular as polymer suppliers as well and is known to export polymers in different forms. As polymer supplier we export additives and compounds like candle additives and fragrances, commodities and specialties water based PU and also export wax in the form of paraffin wax etc.
4. Paper
As a paper exporter we export different kinds of paper to the countries which includes news prints, coated papers and specialty papers like thermal paper, inkjet paper and NCR paper.
5. Seafood
When it comes to export we also export additives that are used in the seafood industry and non-phosphates like include citric acid, sodium citrate etc. Aqua feeds like shrimp and phosphates are also a part of our popular export product list.
A Broader Outlook on Indian Chemical Industry
India has achieved considerable progress in production of chemicals. And with slash in tariffs, Indian chemical companies with well-built systems and structured operations are likely to be benefited further.
It is not only country's oldest industry, but the Indian Chemical Industry has been contributing to India's growing economy in a phenomenal way. It may be hard to believe, but the industry serves the basic need of many different industry verticals like natural gas, water, oil, metals, minerals, air, oil, etc and all these verticals eventually bring into marketplace an array of products, almost 70000 products, to be precise.
Today, India has achieved considerable progress in production of basic organic and inorganic chemicals, pesticides, paints, dyestuffs and intermediates, petrochemicals, fine and specialty chemicals and toiletry product segments. And with slash in tariffs, Indian chemical companies with well-built systems and structured operations are likely to be benefited further. The companies manufacturing highly valued chemicals, and who are compliant of industrial quality standards, can make their mark not just in India but even in the overseas markets as well.
In Indian context, the rise in disposable income has led to improved chemical consumption. This has aided country's GDP climb further, from 9% to 13%. In an attempt to make the industry more progressive and flourishing, the government of India has introduced a slew of policies and special economic zones centering on the petrochemical sector. Furthermore, several manufacturing companies are focusing on expansion plans in the coming years.
Chemicals and chemical products influence our lives in a significant way. Be it donning synthetic clothes, or consuming drugs, or when it comes to using thermoplastic furniture at homes and offices, chemicals have become a way of life in this fast-changing world. In addition, the industry plays a pivotal role in agricultural and development sectors. Some of the other sectors, like engineering, automotive, consumer durables and food processing also depend on this sector in a big way.
The industry is on a high growth trajectory. The industry, through a series of efforts is expected to achieve USD 100 billion in the upcoming years. The industry's contribution to the Indian manufacturing sector is almost 17.6 percent. Since the ages, Indian chemicals have been traded and today imports stand at USD 7.92 billion and exports at 5.95 billion. And now with the onset of liberalization and globalization, the Industry is on a major expansion spree. The industry today is into manufacturing wide range of goods including fine and specialty chemicals, drugs and pharmaceuticals, dyes and pigments, agrochemicals and fertilizers, pesticides, plastics and petrochemicals etc.
It is not only country's oldest industry, but the Indian Chemical Industry has been contributing to India's growing economy in a phenomenal way. It may be hard to believe, but the industry serves the basic need of many different industry verticals like natural gas, water, oil, metals, minerals, air, oil, etc and all these verticals eventually bring into marketplace an array of products, almost 70000 products, to be precise.
Today, India has achieved considerable progress in production of basic organic and inorganic chemicals, pesticides, paints, dyestuffs and intermediates, petrochemicals, fine and specialty chemicals and toiletry product segments. And with slash in tariffs, Indian chemical companies with well-built systems and structured operations are likely to be benefited further. The companies manufacturing highly valued chemicals, and who are compliant of industrial quality standards, can make their mark not just in India but even in the overseas markets as well.
In Indian context, the rise in disposable income has led to improved chemical consumption. This has aided country's GDP climb further, from 9% to 13%. In an attempt to make the industry more progressive and flourishing, the government of India has introduced a slew of policies and special economic zones centering on the petrochemical sector. Furthermore, several manufacturing companies are focusing on expansion plans in the coming years.
Chemicals and chemical products influence our lives in a significant way. Be it donning synthetic clothes, or consuming drugs, or when it comes to using thermoplastic furniture at homes and offices, chemicals have become a way of life in this fast-changing world. In addition, the industry plays a pivotal role in agricultural and development sectors. Some of the other sectors, like engineering, automotive, consumer durables and food processing also depend on this sector in a big way.
The industry is on a high growth trajectory. The industry, through a series of efforts is expected to achieve USD 100 billion in the upcoming years. The industry's contribution to the Indian manufacturing sector is almost 17.6 percent. Since the ages, Indian chemicals have been traded and today imports stand at USD 7.92 billion and exports at 5.95 billion. And now with the onset of liberalization and globalization, the Industry is on a major expansion spree. The industry today is into manufacturing wide range of goods including fine and specialty chemicals, drugs and pharmaceuticals, dyes and pigments, agrochemicals and fertilizers, pesticides, plastics and petrochemicals etc.
Re-Export Business in India
India is the second most densely and highly populated country in the world. The total population of it is around one fifth of the total population of the world. At present no country of the world can ignore India as far as commerce and business is concerned. This is the reason that although there are a huge number of people living in India who live under the line of poverty, there are many businesses which are growing in India. Although there are many different kinds of businesses which are growing in India, the re-export business in India is flourishing at a very fast pace.
India is a densely populated country. It has very few patches of less populated regions. Most of the Indian Territory is highly populated. India is an extremely populated region and as such you find a lot of re-export business here. Re-export business in India is growing a lot. There are many reasons behind the growth of this re-export business in India. If you want to understand the growth of this business in India, you will need to take a look at the population statistics of India as well as the industry we are talking about here.
India is a highly populated country. There are literally millions of people in India who are living under the poverty line. Considering the state of poverty at one side and the development as growth due to the film industry, information technology industry as well as cotton textile industry, you find that the business of re-export is on a rise in India. Re-export business in India is on a rise and there are many reasons behind this increase. To understand the businesses in India better, one needs to understand the different classes of India and the reason of growth of one particular sector of Indian industry.
To cut a long story short, one can understand this fact that as there are lots and lots of people who are living in India, you find that as a result there are many different people who are looking for more business and jobs all the time. With ever increasing unemployment and a huge number of people living under the line of poverty, the obvious result is that the re-export business in India is on a rise. Thus the population factor here is driving the businesses to one particular dimension. The current economic state of India is very much dependent on the population this country is supporting.
India is a densely populated country. It has very few patches of less populated regions. Most of the Indian Territory is highly populated. India is an extremely populated region and as such you find a lot of re-export business here. Re-export business in India is growing a lot. There are many reasons behind the growth of this re-export business in India. If you want to understand the growth of this business in India, you will need to take a look at the population statistics of India as well as the industry we are talking about here.
India is a highly populated country. There are literally millions of people in India who are living under the poverty line. Considering the state of poverty at one side and the development as growth due to the film industry, information technology industry as well as cotton textile industry, you find that the business of re-export is on a rise in India. Re-export business in India is on a rise and there are many reasons behind this increase. To understand the businesses in India better, one needs to understand the different classes of India and the reason of growth of one particular sector of Indian industry.
To cut a long story short, one can understand this fact that as there are lots and lots of people who are living in India, you find that as a result there are many different people who are looking for more business and jobs all the time. With ever increasing unemployment and a huge number of people living under the line of poverty, the obvious result is that the re-export business in India is on a rise. Thus the population factor here is driving the businesses to one particular dimension. The current economic state of India is very much dependent on the population this country is supporting.
Leather Industry - India Fostering Growing Sectors
India is on a roll. The nation of 1.1 billion is finally being taken seriously by the big players on the world economic stage, namely the United States and China. With a young population, a solid private sector and a stable democratic government, India is in the spotlight and it's predicted that in 2040 it will have the third largest economy. Granted, there were many problems to address, but economic growth in India has been so impressive since major reforms took hold in the early 1990s that it's unlikely that this South Asian tiger's roar will easily be silenced, or even lowered.
Performance of industries in general and select industries like salt, cement, leather, tyre and rubber, paper and pulp were being considered to be growing tremendously with various initiatives taken by Government of India and investment in the sector by private players will surely deliver bottom line results in coming years.
Indian Leather Industry: Employment and Growth
The post liberalization era has opened up surfeit opportunities for the Indian leather industry. With global players looking for new sourcing options which in addition to China, India stands to gain a bigger share of the global market. Leading brands from the US and Europe is either importing or planning to source leather and leather products from India.
India which has around 3% share in the global trade in leather compared to China's 20%. Realizing the growth potential of the leather industry which occupies a prominent place in the Indian economy, the Government of India has been making significant efforts to promote rapid advancement of the industry. With generous export earnings, employment potential, growth and being the 10th largest sector among the Indian manufacturing sector it employs 2.5 million people and provides employment to weaker sections/minorities, of which about 30% were women.
The Leather Industry occupies a prominent place in the Indian economy, in view of its substantial export earnings, employment potential and growth. Leather and its products were amongst the top ten export earners for the country and is the 10th largest among the Indian manufacturing sector.
The Indian Leather industry is organized as tanning and finishing, Leather garments, Leather goods etc with Kanpur, Agra, Kolkata, and Chennai were among the major production clusters. India has vast natural resources of raw hides & skins due to which the export of leather products from India has undergone a structural change resulting in increased exports of various leather products.
Government Initiatives: Schemes, Policy and Investment
Considering the importance of sector the Government took various initiatives to encourage export of value added leather products. Under the rule of Licensing/ Reservations all the items of manufacture in the leather sector have been de reserved from the SSI list in 2001. Central Government at their end took various policy support measures taking under consideration the Leather industry as one of the thrust sectors.
Some snippets from National Foreign Trade Policy 2004-09 were as follows: a) Enhancement of duty free entitlement from 1% to 3% for leather products and footwear; b) CVD exemption on lining and interlining materials, customs; c) Duty exempted on machinery & equipments for effluent treatment plants; d) 5% concessional import duty extended to certain additional machinery; e) support by implementing International marketing programme through MDA and MAIS; f) by forming various inter ministerial committees.
During the 10th Five Year Plan 400 crores was made available for implementation of various schemes under "Indian Leather Development Programme" which comprises of two programmes one was Integrated Development of Leather Sector and second was Infrastructure Strengthening of Leather Sector. Some schemes like support to Rural Artisans, INTECHMART and saddler development were under implementation as continues schemes, from the 9th Five Year Plan.
Industry: Views and Proposals
There were certain proposals from the business community for 11th Five Year Plan like Stratagem to achieve US Dollar 7billion export takings by the end of XI five year plan; to increase the equip of raw hides & skins so as to reduce imports of raw hides & skins; resourcefully address environmental concerns to make the leather units meet severe environmental norms; establishing training facilities to cater to the demands of the industry which was facing an acute shortage of skilled manpower.
From policy changes to new proposals there were still certain bottle necks which were actually hindering the growth process of leather industry. Some of them in the form of SWOT analysis were as follows:
Strength, Weakness, Opportunity and Threats
Indian Leather industry Strengths depended on the factors like High growth; cheap manpower; Hefty raw material base; Continuous emphasis on product development and Design up gradation. With plethora of opportunities like rising potential in the domestic market; Use of information technology and decision support software to help eliminate the length of the production cycle for different products; Use of e-commerce in direct marketing etc.
However with such a good credentials still there were certain weaknesses like Lack of warehousing support from the government; International price fluctuation; Lack of strong presence in the global fashion market; Unawareness of international standards by many companies which has also transformed these into threats like major part of the industry is unorganized; Limited scope for mobilizing funds through private placements and public issues like many businesses were family-owned; Difficulty in obtaining bank loans resulting in high cost of private borrowing; Stricter international standards; Lack of communication facilities and skills.
What Government must do?
I am sure people engaged in this sector must have been thankful to government for the various positive policy initiatives, however, it's high time to urge the government to look into the deeper problems which were still blocking the potential & expected growth of the sector, holding the sector backward.
Performance of industries in general and select industries like salt, cement, leather, tyre and rubber, paper and pulp were being considered to be growing tremendously with various initiatives taken by Government of India and investment in the sector by private players will surely deliver bottom line results in coming years.
Indian Leather Industry: Employment and Growth
The post liberalization era has opened up surfeit opportunities for the Indian leather industry. With global players looking for new sourcing options which in addition to China, India stands to gain a bigger share of the global market. Leading brands from the US and Europe is either importing or planning to source leather and leather products from India.
India which has around 3% share in the global trade in leather compared to China's 20%. Realizing the growth potential of the leather industry which occupies a prominent place in the Indian economy, the Government of India has been making significant efforts to promote rapid advancement of the industry. With generous export earnings, employment potential, growth and being the 10th largest sector among the Indian manufacturing sector it employs 2.5 million people and provides employment to weaker sections/minorities, of which about 30% were women.
The Leather Industry occupies a prominent place in the Indian economy, in view of its substantial export earnings, employment potential and growth. Leather and its products were amongst the top ten export earners for the country and is the 10th largest among the Indian manufacturing sector.
The Indian Leather industry is organized as tanning and finishing, Leather garments, Leather goods etc with Kanpur, Agra, Kolkata, and Chennai were among the major production clusters. India has vast natural resources of raw hides & skins due to which the export of leather products from India has undergone a structural change resulting in increased exports of various leather products.
Government Initiatives: Schemes, Policy and Investment
Considering the importance of sector the Government took various initiatives to encourage export of value added leather products. Under the rule of Licensing/ Reservations all the items of manufacture in the leather sector have been de reserved from the SSI list in 2001. Central Government at their end took various policy support measures taking under consideration the Leather industry as one of the thrust sectors.
Some snippets from National Foreign Trade Policy 2004-09 were as follows: a) Enhancement of duty free entitlement from 1% to 3% for leather products and footwear; b) CVD exemption on lining and interlining materials, customs; c) Duty exempted on machinery & equipments for effluent treatment plants; d) 5% concessional import duty extended to certain additional machinery; e) support by implementing International marketing programme through MDA and MAIS; f) by forming various inter ministerial committees.
During the 10th Five Year Plan 400 crores was made available for implementation of various schemes under "Indian Leather Development Programme" which comprises of two programmes one was Integrated Development of Leather Sector and second was Infrastructure Strengthening of Leather Sector. Some schemes like support to Rural Artisans, INTECHMART and saddler development were under implementation as continues schemes, from the 9th Five Year Plan.
Industry: Views and Proposals
There were certain proposals from the business community for 11th Five Year Plan like Stratagem to achieve US Dollar 7billion export takings by the end of XI five year plan; to increase the equip of raw hides & skins so as to reduce imports of raw hides & skins; resourcefully address environmental concerns to make the leather units meet severe environmental norms; establishing training facilities to cater to the demands of the industry which was facing an acute shortage of skilled manpower.
From policy changes to new proposals there were still certain bottle necks which were actually hindering the growth process of leather industry. Some of them in the form of SWOT analysis were as follows:
Strength, Weakness, Opportunity and Threats
Indian Leather industry Strengths depended on the factors like High growth; cheap manpower; Hefty raw material base; Continuous emphasis on product development and Design up gradation. With plethora of opportunities like rising potential in the domestic market; Use of information technology and decision support software to help eliminate the length of the production cycle for different products; Use of e-commerce in direct marketing etc.
However with such a good credentials still there were certain weaknesses like Lack of warehousing support from the government; International price fluctuation; Lack of strong presence in the global fashion market; Unawareness of international standards by many companies which has also transformed these into threats like major part of the industry is unorganized; Limited scope for mobilizing funds through private placements and public issues like many businesses were family-owned; Difficulty in obtaining bank loans resulting in high cost of private borrowing; Stricter international standards; Lack of communication facilities and skills.
What Government must do?
I am sure people engaged in this sector must have been thankful to government for the various positive policy initiatives, however, it's high time to urge the government to look into the deeper problems which were still blocking the potential & expected growth of the sector, holding the sector backward.
Agricultural Jobs - Changing Opportunities
Agriculture has always been a very integral part in American history. The first settlers to come over to America needed to become good farmers in order to survive. The agriculture industry has grown by leaps and bounds since that time, and now the agricultural job market can be very rewarding. Many of the new agricultural jobs available these days deal with the new types of technology that are required to produce the crops that America demands. The days of a family working their land by hand and producing a small amount of crops is over. Now many large plantations are run by huge corporations that capitalize on many of the new emerging technologies to harvest a larger amount of crops in a shorter period of time. If you would like to get one of these new types of jobs in the agricultural industry, then you will need to make sure that you stay on top of the new technologies available.
Many of these new jobs in the agricultural field have embraced these new technologies. Two of the new technologies that have created many new jobs in the agricultural industry are global positioning systems (GPS), and biotechnology. The GPS systems have really enhanced the ability for farmers to seed and harvest their crops in the best way possible. They can make sure that they position all of their crops exactly where they want them to be for them to be the most productive. The biotechnology field has really helped the agricultural industry, because many new innovations have allowed better and safer fertilizers to be used on crops. Biotechnology has also helped farmers to better understand what helps to make their crops better. Both of these new technologies are very interesting and offer many new opportunities. The agricultural industry still requires quite a bit of hard work to bring in a good crop, but now many people can take advantage of these improvements to make the industry a much better experience.
Many of these new jobs in the agricultural field have embraced these new technologies. Two of the new technologies that have created many new jobs in the agricultural industry are global positioning systems (GPS), and biotechnology. The GPS systems have really enhanced the ability for farmers to seed and harvest their crops in the best way possible. They can make sure that they position all of their crops exactly where they want them to be for them to be the most productive. The biotechnology field has really helped the agricultural industry, because many new innovations have allowed better and safer fertilizers to be used on crops. Biotechnology has also helped farmers to better understand what helps to make their crops better. Both of these new technologies are very interesting and offer many new opportunities. The agricultural industry still requires quite a bit of hard work to bring in a good crop, but now many people can take advantage of these improvements to make the industry a much better experience.
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