Unveiling Protectionism: Regional Responses to Remaining Barriers in the Textiles and Clothing Trade

this chapter focuses on some major domestic issues that encompass supply and demand in textile and apparel sector in India.textile and apparel sector, domestic supply and demand, India

Effects of trade liberalisation, environmental and labour regulations on employment in India's organised textile sector

In recent years, employment has fallen in the organised textile sector despite an aggregate rise in output and capital. This paper analyses the role of various factors that influence employment using 3-digit classification of Indian textile industry from 1973-74 to 1997-98. Our results document that the fall in employment can be explained in terms of rise in wages, output shocks, lack of capital utilisation and trade restrictiveness pertaining to Multi Fibre Arrangement (MFA). Environmental regulations enhance employment in the sub-sectors that are most likely to be influenced by them. The results are robust to dierent measures of capital, its utilisation and disaggregation to statelevel. We also illustrate that in a post-MFA regime, employment in the sector is bound to increase owing to absence of trade restrictions and prospects of huge investment in general and in complying with environmental regulations, though the labour regulations might affect the magnitude of that increase.

Effects of Trade liberalisation, Environmental and Labour Regulations on Employment in India's Organised Textile Sector

In recent years, employment has fallen in the organised textile sector despite an aggregate rise in output and capital. This paper analyses the role of various factors that in uence employment using 3- digit classication of Indian textile industry from 1973-74 to 1997-98. Our results document that the fall in employment can be explained in terms of rise in wages, output shocks, lack of capital utilisation and trade restrictiveness pertaining to Multi Fibre Arrangement (MFA). Environmental regulations enhance employment in the sub-sectors that are most likely to be in uenced by them. The results are robust to dierent measures of capital, its utilisation and disaggregation to statelevel. We also illustrate that in a post-MFA regime, employment in the sector is bound to increase owing to absence of trade restrictions and prospects of huge investment in general and in complying with environmental regulations, though the labour regulations might aect the magnitude of that increase.Trade Liberalisation, environmental regulations, Labour Regulations, Employment, India, Textile

Determinants of Competitiveness of the Indian Auto Industry

1. This study analyses the determinants of competitiveness in the Indian auto industry. It is based on a field survey and a quantitative analysis of secondary data. The field survey covers 45 firms all over India, of which 31 are auto-component firms and 14 are Original Equipment Manufacturers (OEMs). 2. From 2001-02 to 2005-06, the Indian automobile sector has grown at an average annual rate of over 18 per cent in terms of value of output at constant 1993-94 prices and the auto-component sector has grown at about 26 per cent. During the same period, in terms of domestic sales in numbers, two-wheelers have grown at over 13 per cent per annum; three-wheelers at more than 15 per cent commercial vehicles at about 25 per cent per annum and the number of passenger vehicles by 17 per cent per annum. 3. Vehicle exports at constant 1993-94 prices have grown at an average annual rate of more than 55 per cent from 2001-02 to 2005-06, while auto-component exports have grown at 21 per cent. Two-wheeler exports have seen an annual average growth rate of 27 per cent; passenger car exports have grown at 80 per cent; and commercial vehicles at about 55 per cent. 4. The effective rate of protection on automobiles is much higher than on components. For example, during 2006-07, while nominal custom duties were 60 per cent for automobiles (other than commercial vehicles), 12.5 per cent for commercial vehicles and 12.5 per cent for auto-components, effective rates of protection were 183.5 per cent, 12.5 per cent and 10.1 per cent, respectively. 5. With the higher countervailing duty and other cesses/levies, the effective rate of protection for automobile sector would be even higher. 6. This differential rate of effective protection distorts resource allocation and investment pattern in the industry. 7. The auto-component sector has much higher employment-generation potential and export-intensity than the auto assembly segment of the sector. The component manufacturers are now globally competitive and are also maintaining reasonable profitability levels despite a tariff protection of only 7.5 per cent. 8. The import tariff for the assembled vehicles is 60 per cent. Given the low level of protection both for the auto components and CKD/SKD kits, this clearly reflects a policy bias in favour of auto assemblers. 9. The reduction in import duties on assembled units may be undertaken in a phased manner and after ensuring that Indian automobile companies get comparable access to ASEAN and Chinese markets. 10. The anti-dumping mechanism should be strengthened to prevent the dumping of vehicles in the Indian market. 11. The government must also ensure that the large infrastructure deficit faced by this important sector is addressed urgently so that any adverse impact of macroeconomic policies is avoided. These are important steps if import duty structure is to be rationalized. 12. Materials cost is the major component in production cost and its share is increasing. Policy measures to reduce domestic indirect taxes on all inputs for the auto industry would be a welcome step to enhance competitiveness. The Chinese auto industry faces a flat 17 per cent indirect tax incidence, so our aim should be to reach that level. 13. Significant scaling up is required at all levels in the Indian auto-component sector so that economies of scale are gained and cost of production reduced. 14. One of the major constraints for the smaller auto-component manufacturers in increasing their scales of production is lack of credit availability at interest rates comparable to other countries. This is also confirmed by our econometric analysis. 15. R&D expenditure as a share of turnover is low in the Indian auto-component sector ranging between 0 and 1.5 per cent while it is 0.5-3 per cent for the automobile sector. In fact, most of the smaller auto-component firms and a few of the bigger ones do not have an R&D facility. Policy intervention is urgently needed to improve the R&D activities in the Indian auto industry. Since fiscal incentives are not working, a scheme of special credit for R&D would be useful to induce the R&D activities. 16. Indias current levels of tariff on capital goods are higher than those in the ASEAN and China. Thus, these tariffs should be brought down further to enhance competitiveness. 17. The Indian auto industry does not possess good design facilities. The Government needs to significantly strengthen non-proprietary R&D and design capacity that has strong connections with research institutes like IITs. This could be used by all the players in the industry to develop new models, reduce material costs and become more competitive. 18. Skill shortages and skill mismatches have emerged as a major constraint. To address this critical concern, the proposed National Auto Institute1 should be quickly established with active participation of private industry players. 19. There is a significant and increasing use to contract workers in the industry. Labour reforms, aimed at more flexibility, are widely considered among the industrialists as an essential step. This will encourage firms to employ and retain more permanent workers and improve learning and raise productivity levels. 20. It is important to recognize that labour reforms are expected to increase overall employment in the auto sector and will also help firms in the organised sector to scale up. 21. The unorganised sector contributes 30 per cent to total employment, 15 per cent to fixed assets and only 1.5 per cent to output in auto industry in India. This sector has much lower capital and labour productivity than the organised sector. The share of power/fuel cost in total costs are much higher in the unorganised sector. Hence, policy measures are required to incentivise these smaller firms to use power and fuel more efficiently, by adopting better technologies and taking steps to minimise wastage. 22. In the econometric analysis, foreign equity participation is found to be correlated with technical efficiency. Therefore, both centre and state governments should create a conducive environment for attracting more FDI. 23. The trend of mid-sized vehicles capturing a large market share is expected to continue in the foreseeable future. 24. A detailed roadmap for strict implementation of emission standards that are harmonised across states should be drawn up. This could go a long way in ensuring that the entire automotive supply chain upgrades quality and technology. 25. While the implementation of VAT is a positive step, remaining differential in indirect taxes should be eliminated by moving to the GST. The currently prevalent region-specific fiscal concessions are creating the unsustainable locational distortions in the industry. 26. So far, Indias FTA with Thailand has resulted in a net trade gain for India. The government must, however, ensure comparable, if not preferential, market access to domestic firms in partner countries, especially in the Asia-Pacific region, while negotiating FTAs. 27. The principles pertaining to the rules of origin have to be strictly implemented.Indian Auto Industry, competitiveness, Efficiency and Indian Auto Policy

Determinants of Competitiveness of the Indian Auto Industry

This paper analyses the determinants of competitiveness of auto industry in India, based on a field survey and a quantitative analysis of secondary data. It highlights that all segments of Indian auto sector are growing at a fairly high rates and their productivity as well as export intensity is on the rise. Domestic sales are rising, but they have declined in certain sub-segments of vehicles. However, the R&D expenditure has been scarce. Effective rate of protection of automobile assembly is far higher than that of auto-components manufacturing. Unorganised sector, which is quite significant in auto-component manufacturing, has grown more rapidly in the urban areas than in the rural areas. The econometric analysis suggests various measures that could be taken by the government, particularly, the credit facilitation for SMEs. A field survey comprising auto manufacturers in India underlines various constraints faced by the sector, such as the shortage of skilled manpower along with poor infrastructure, fluctuating steel prices and unavailability of land at reasonable price. This suggests that the government could facilitate the industry in becoming more competitive by taking steps such as structural fiscal reforms, cut in import duties of raw materials and capital goods, promotion of R&D and FDI, training facilities, research-backed negotiations of FTAs, roadmap for harmonising emission norms across the country and infrastructure improvement. Industry, on the other hand, should improve its R&D capabilities and market research.Indian Auto Industry, Competitiveness, Efficiency and Indian Auto Policy

Power system security enhancement through direct non-disruptive load control

The transition to a competitive market structure raises significant concerns regarding reliability of the power grid. A need to build tools for security assessment that produce operating limit boundaries for both static and dynamic contingencies is recognized. Besides, an increase in overall uncertainty in operating conditions makes corrective actions at times ineffective leaving the system vulnerable to instability. The tools that are in place for stability enhancement are mostly corrective and suffer from lack of robustness to operating condition changes. They often pose serious coordination challenges. With deregulation, there have also been ownership and responsibility issues associated with stability controls. However, the changing utility business model and the developments in enabling technologies such as two-way communication, metering, and control open up several new possibilities for power system security enhancement. This research proposes preventive modulation of selected loads through direct control for power system security enhancement. Two main contributions of this research are the following: development of an analysis framework and two conceptually different analysis approaches for load modulation to enhance oscillatory stability, and the development and study of algorithms for real-time modulation of thermostatic loads.;The underlying analysis framework is based on the Structured Singular Value (SSV or mu) theory. Based on the above framework, two fundamentally different approaches towards analysis of the amount of load modulation for desired stability performance have been developed. Both the approaches have been tested on two different test systems: CIGRE Nordic test system and an equivalent of the Western Electric Coordinating Council test system.;This research also develops algorithms for real-time modulation of thermostatic loads that use the results of the analysis. In line with some recent load management programs executed by utilities, two different algorithms based on dynamic programming are proposed for air-conditioner loads, while a decision-tree based algorithm is proposed for water-heater loads. An optimization framework has been developed employing the above algorithms. Monte Carlo simulations have been performed using this framework with the objective of studying the impact of different parameters and constraints on the effectiveness as well as the effect of control.;The conclusions drawn from this research strongly advocate direct load control for stability enhancement from the perspectives of robustness and coordination, as well as economic viability and the developments towards availability of the institutional framework for load participation in providing system reliability services

Applications of graph-based codes in networks: analysis of capacity and design of improved algorithms

The conception of turbo codes by Berrou et al. has created a renewed interest in modern graph-based codes. Several encouraging results that have come to light since then have fortified the role these codes shall play as potential solutions for present and future communication problems. This work focuses on both practical and theoretical aspects of graph-based codes. The thesis can be broadly categorized into three parts. The first part of the thesis focuses on the design of practical graph-based codes of short lengths. While both low-density parity-check codes and rateless codes have been shown to be asymptotically optimal under the message-passing (MP) decoder, the performance of short-length codes from these families under MP decoding is starkly sub-optimal. This work first addresses the structural characterization of stopping sets to understand this sub-optimality. Using this characterization, a novel improved decoder that offers several orders of magnitude improvement in bit-error rates is introduced. Next, a novel scheme for the design of a good rate-compatible family of punctured codes is proposed. The second part of the thesis aims at establishing these codes as a good tool to develop reliable, energy-efficient and low-latency data dissemination schemes in networks. The problems of broadcasting in wireless multihop networks and that of unicast in delay-tolerant networks are investigated. In both cases, rateless coding is seen to offer an elegant means of achieving the goals of the chosen communication protocols. It was noticed that the ratelessness and the randomness in encoding process make this scheme specifically suited to such network applications. The final part of the thesis investigates an application of a specific class of codes called network codes to finite-buffer wired networks. This part of the work aims at establishing a framework for the theoretical study and understanding of finite-buffer networks. The proposed Markov chain-based method extends existing results to develop an iterative Markov chain-based technique for general acyclic wired networks. The framework not only estimates the capacity of such networks, but also provides a means to monitor network traffic and packet drop rates on various links of the network.Ph.D.Committee Chair: Fekri, Faramarz; Committee Member: Li, Ye; Committee Member: McLaughlin, Steven; Committee Member: Sivakumar, Raghupathy; Committee Member: Tetali, Prasa

India’s Science, Technology, And Innovation Policy (STIP) 2020: A Critial Review

In this article, we review the latest literature and news articles on the recent announcement by Government of India about a new Science,Technology, and Innovation Policy (STIP) 2020. We discuss that this is a unique policy in many ways, in particular, with an implementation plan and with a lot of specifics on different areas rather than a broad-based policy document. We critically review this upcoming policy in the light of Covid recovery that is happening across the world and in India. We conclude by stating that this has addressed many shortcomings of the past policies and can potentially usher in an era of self reliant India, contributing globally, benefitting from the global prowess of science, technology and innovation

A Literature based study on Cyber Security and Climate Changes

Cybersecurity issues constitute a key concern of today’s technology-based economies. Cybersecurity has become a core need for providing a sustainable and safe society. Considering the rapid increase of technological implementations, it has turned into a global necessity in the attempt to adapt security countermeasures whether direct or indirect and prevent systems from cyberthreats. With it, discourse on cyber security is increasingly prevalent on the national and international levels.The threat of hacking, or cyber influence, and control and ownership over information and intelligence is often the first imagined threat in relation to cyber security. This places the state, its infrastructure and its institutions at the centre of such threats but fails to consider the impact of cyber security on people at the individual level and their communities. Climate changes due to global warming and other factors, lead to reoccurring droughts, volatile conditions, harsh environments, exposure to unpredictable natural disasters, long winters or summer, low annual rainfall, migration and vast distances between human settlementsand other unexpected climate trends.In addition to the existing constraints and possibilities that cybersecurity and digitalisation pose for human security.This work is carried out to revisit the human-centric approaches to security in cyberspace, understanding of cybersecurity and use of cyber technologies in everyday lives of individuals and communities. It also seeks to contextualise such security influences in relation to the role of climate change and its influence on the society

Digital Transformation Of Education And Sustainability-Review Based Study

Digital transformation, however, is broader than just the digitization of existing processes. Digital transformation entails considering how products, processes and organizations can be changed through the use of new, digital technologies. A 2019 review proposes a definition of digital transformation as "a process that aims to improve an entity by triggering significant changes to its properties through combinations of information, computing, communication, and connectivity technologies.