A Tribute to an Artist of Innovation !

Goodbye Steve!

               Remembering Steve as an entrepreneur only  would certainly  underrate his successful life. A leader, Marketer and above  all an artist of technological innovations suit the  man of  this stature . Life of Steve jobs is exemplary for whole world  especially when  model of capitalism has proved to be an unrestrained  pursuit of  wealth by wealthy. Contrary to Greedy & reckless  system of US capitalism that built complex financial Instruments and Wall street derivatives, Business Ideology of Steve jobs was stakeholder’s  friendly which created markets, created needs and created demand for products.

Steve, who could not even finish off  his engineering due to poor economic conditions started his venture in Garage. His perseverance, efforts & grit created and led Apple Inc to Zenith of  success.

Steve was  extraordinary, a genius who born only once in centuries. World would not have been same today without this artist of Technological-Innovation who also learned spirituality in youth when  came to India.

Desktop PC, Machintosh OS, iPod, Macbook, ipad, iphone, itune, only an artist of innovation can paint such series of success.

Hats off to Steve for the great innings!

Vibrant Future & Fabric of Indian Textile

The Multi Fibre Arrangement (MFA) Agreement on Textile and Clothing (ATC)) governed the world trade in textiles and garments from 1974 through 2004, imposing quotas on the amount developing countries could export to developed countries. It expired on 1 January 2005.

The MFA was introduced in 1974 as a short-term measure intended to allow developed countries to adjust to imports from the developing world. Developing countries have a natural advantage in textile production because it is labor intensive and they have low labor costs. According to a World Bank/IMF study, the system has cost the developing world 27 million jobs and $40 billion a year in lost exports.

However, the Arrangement was not negative for all developing countries. For example the EU imposed no restrictions or duties on imports from the very poorest countries, such as Bangladesh, leading to a massive expansion of the industry there.

At the GATT Uruguay Round, it was decided to bring the textile trade under the jurisdiction of the World Trade Organization. The Agreement on Textiles and Clothing provided for the gradual dismantling of the quotas that existed under the MFA. This process was completed on 1 January 2005. However, large tariffs remain in place on many textile products.

Bangladesh was expected to suffer the most from the ending of the MFA, as it was expected to face more competition, particularly from China. However, this was not the case. It turns out that even in the face of other economic giants, Bangladesh’s labor is “cheaper than anywhere else in the world.” While some smaller factories were documented making pay cuts and layoffs, most downsizing was essentially speculative – the orders for goods kept coming even after the MFA expired. In fact, Bangladesh’s exports increased in value by about $500 million in 2006.

Impact on Indian textile Industry

The Indian textiles industry, which already has an overwhelming presence in the economic life of the country, has been given a further thrust with the scrapping of quotas in world trade of textiles and clothing. In the post quota period, the industry size has expanded from US$ 37 billion in 2004-05 to US$ 49 billion in 2006-07. In this period, while the domestic market increased from US$ 23 billion to US$ 30 billion, exports increased from around US$ 14 billion to US$ 19 billion.

A leading sector in the Indian economy, textiles contributes 14 per cent to industrial production, 4 per cent to the GDP and around 17 per cent to the total export earnings. It is, in fact, the largest foreign exchange earning sector in the country. In addition, it provides direct employment to over 35 million. And with continuing growth momentum, its role in the Indian economy is bound to increase.

India Advantage

India has certain natural advantages, which has propelled the growth of its textiles industry.

India is the third largest producer of cotton in the world and second largest producer of cotton yarn and textiles.

It accounts for 61 per cent of global loom age.

It has 22 per cent of the global spindle age.

It accounts for 12 per cent of the world’s production of textile fibres and yarn.

India also has 25 per cent share in the total world trade in cotton yarn.

Exports

Textiles exports, which were growing at a moderate pace till 2004-05, registered a sharp growth of 21.77 per cent in 2005-06 to touch US$ 17 billion from US4 14 billion in 2004-05, due to the scrapping of quotas. The growth has continued with total exports increasing to US$ 19.62 billion in 2006-07. Currently India has a 3.5-4 per cent share in world export of textiles and 3 per cent in clothing exports.