Problem of Micro Enterprises in India- A Case Study of Firozabad Bangle

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1 Problem of Micro Enterprises in India- A Case Study of Firozabad Bangle Gargi Kulshreshtha 1, Dr. M. K. Kulshreshtha 2 1 Research Scholar, Bhagwant University, Ajmer, Rajasthan 2 Research Supervisor Department of Commerce, Bhagwant University, Ajmer, Rajasthan Abstract As per data available in the economic survey report of , it is clear that in India there are 2.7 million small scale units, their gross production is approx. 3, 37,000 crores, out of that total export is crores and approx. 2.7 million people are getting employment in these micro enterprises. Above facts clearly indicates that contribution of micro enterprises is greater than 40% of total GDP of India. Above facts clearly shows that micro enterprise play important role in smooth functioning of economy. Micro enterprises mainly include the Hosiery of Ludhiana, Scientific instruments of Ambala, Power Looms of Panipat and Handicrafts of Rajasthan are name a few which are contributing in the GDP of our country. From the very beginning these small scale units are suffering with lot of labour problems and in Firozabad bangle industry it is maximum and because of this we are taking sample Firozabad bangle industry for the purpose of our study. Keywords: Micro Enterprises, Firozabad Bangle, SSI, GDP, Economic Development, Employment 1 Introduction As we know that small scale industries are having great importance in our economy. As per definition is concerned the small scale industry includes all units of production, factories in which less than 1crore are invested as fixed capital. In these factories, workers are producing the products with the help of machine or manually. Firozabad is a district head quarter of Uttar Pradesh. Before bangle industry this city was one of the backward city of U.P. because of low population there were less educational institute, medical facility and business. Since the development of bangle industry now people are concerned about education and city is having good medical facility and there is increase in business too as a result slum areas are converted into ideal colony, small units are converted into big micro enterprise and around one lakh labours are getting employment in these micro enterprise. Needless to say that because of bangle industry development the economic life of Firozabad has been totally changed. India is a religious country and an ideal one because of its culture in which women s shringar is having a great importance and this shringar is a mix of golden ornaments and her bangle as a symbol of her good luck and long life of her husband. These bangles are broken by the relatives when the husband dies. 2 Objectives of the Study The whole study can be divided in the following parts. Above study clearly reveals that micro enterprises of Firozabad is contributing a lot in the GDP of our country hence we are considering these micro 130

2 enterprises as a sample of our case study for analyzing the labour problems. In a nutshell following are the objectives of our case study. 1. How bangle started in Firozabad? 2. Contribution of Bangle in economic development, in employment, in export and in production. 3. Problems of Bangle 4. Solutions of problems 5. Barrier in solving the problems in connection with new machine, marketing research, change in taste of consumer 6. Importance of Bangle in UP 7. Reason of Ignorance of labours and its impact on the development of Bangle. 3 Problems of Bangle Firozabad is a historical city of U.P. having great importance in the development of Indian culture. Because of bangle industry Firozabad is having a name and fame in the world but unfortunately bangle industry is facing lot of problems. In Firozabad raw material and power is easily available but because of ignorance labour bangle industry could not develop properly. Although govt implemented factory act, minimum wages act, industrial policy, import export policy, and industrial licensing policy etc for the development of bangle industry but the study clearly research that: A. Labours are ignored in Firozabad. Owners are not taking appearance of labour, minimum wages act is not applicable, no welfare scheme is implemented for their development and keeps them fit to work for a longer time. B. They are not working in good conditions. In bangle industry the nature of work is very risky. If melted glass is put on any part of the body it will burn 100% skin of that part of the body. Bust as per owner are concerned, they are not much worried about the working conditions, even basic requirement as per factory act are not fulfilled. C. They are not getting approved salary. There is no system of minimum wages act and simply bargaining and exploitation is going on. D. Their standard of living is not up to the mark. They are not able to live in good standard. Most of them are working in high temperature of furnace. It is necessary that the labours should be taken care of properly as they are playing important role in the development of country s culture and for the development of UP also. Hence their problems must be removed so that they can contribute their maximum in the development of UP. A survey was conducted to find out the solution of their problems. Following are the outcome of that survey. 131

3 1. Describe the working conditions in your factory? WORKING CONDITION OF LABOURS IN FACTORY Labours Unsatisfied, 68% Labours Satisfied, 32% 2. How much salary you are getting for your job? LABOUR GETTING WAGES 70% 30% Labours getting minimum wages Labours not getting minimum wages 132

4 3. How much time you are working for your job? TIME SPENT WHILE WORKING FOR JOB 67% 33% Labours more than 8 hours labours working for 6 hours 4. Describe the welfare activities in your factory? WELFARE ACTIVITIES IN FACTORY welfare activities available 31% No welfare activities 69% 133

5 5. Are industrial rules and regulations applied in the factory? RULES & REGULATIONS APPLIED IN THE FACTORY Not applied Applied 36% 64% 4 Conclusion Above study clearly reveals that labour conditions of bangle industry is very poor and to remove the problems it is felt necessary that Administration should interfere to protect the labours as they are contributing in economic development of the country and are trying to maintain our Indian culture. For removing the problems following steps can be taken. 1. Minimum wages act must be implemented strictly so that their standard of living can be increased. 2. Factory act should be implemented properly and due care should be given to monitor the working hours which will help the labours to maintain themselves in a healthy way. 3. There should be a separate policy/ committee to monitor the activities of bangle industry as a whole, which will help to remove the problems of labours on the spot. 4. Proper welfare activities must be implemented by the owners of bangle industry so that workers will not be shifting themselves in other trade which will result high expertness of bangles. 5 References [1] Demonstration and development of a dissemination package for pot furnace and muffle furnace in glass industry at Firozabad energy sector Phase 4 Glass TA2. [2] Environmental improvement and sustainable development of the Agra Mathura Firozabad Trapezium in Uttar Pradesh an Action Plan Report submitted to Asian Development Bank [TERI Project Report number 97CR51 (March 2000), Volume 2]. 134

6 [3] Basu, K. (1999), Child Labor: Causes, consequence, and cure, with remarks on International Labour Standards, Journal of Economic Literature, 37, [4] Basu, K. (2002), A Note on Multiple General Equilibria with Child Labour, Economics Letters, 74, [5] Basu, K and Van, P.H. (1998), The Economics of Child Labour, American Economic Review, 88(3), [6] Chaudhri, D.P. (1996), Dynamic Profile of Child Labour in India , ILO, New Delhi. 135

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