Threat to Small Producers


 
 
Concept Explanation
 

Threat to Small Producers

Threat To Small Producers: The rising competition has posed major challenges for small producers of items like batteries, capacitors, plastics, toys, tyres, dairy products and vegetable oil. Many of these units have shut down due to competition from imported goods available at low prices. It led tendering many workers jobless.

Growing Competition & Uncertain Employment (Garment Industry): Globalisation and the pressure of competition have changed the Ives of workers. Faced with growing competition, most employers these days prefer flexible employment or to employ workers flexibly'. This means that workers jobs are no longer secure. Its ypical example is the garment export industry. Large MNCS with a worldwide network look for the cheapest goods to maximise their profits.To get these large orders, Indian garment exporters try to cut their Own costs by reducing labour costs, as raw material costs cannot be reduced. So, they employ workers only on a temporary basis, Le. only when work is there which means they do not get other benefits which they earlier used to get with a permanent job like Provident Funds (PF). provision for leave, etc.

Working Conditions of Workers: Workers put in very long working hour regularly during the peak demand season Wages workers are forced to do overtime to manage their expenses Workers are denied their fair share of benefits brought about by globalisation These working conditions and hardships of the workers have become common to many industrial units and services in India.

Most workers are employed in the unorganised sector, but now the conditions of work in the organised sector have started looking like those in the unorganised sector. Workers no longer get the protection and benefits that they enjoyed earlier.As per the Growing trend of globalisation , It creates a threatening situation For The Local & Small businessmen , beacuse of lack of capital  background & Higher Competition they have to shut down their business.

 
 


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