Industry

Model Answer

1. Agriculture

The Himalayan terrain offers fertile soil and a favorable climate for specific crops:

• Apple cultivation in Himachal Pradesh and tea farming in Uttarakhand thrive due to terraced farming techniques and distinct micro-climates.
• The region supports horticulture, with significant production of fruits like peaches, plums, and apricots.

2. Livestock Farming

• The alpine meadows of the Himalayas are prime grazing grounds for livestock.
• The region is home to the Pashmina goat, whose fine wool contributes significantly to India’s textile industry.

3. Forestry

• Dense Himalayan forests provide timber and non-timber forest products like wild fruits, medicinal plants, and dyes.
• Medicinal herbs such as Aconitum heterophyllum Wall and Arnebia euchroma are vital to the Ayurvedic and pharmaceutical industries.
• Products like Himachali lavender and saffron from Jammu and Kashmir are unique to the region, enhancing trade and local economies.

4. Fisheries

• The rivers and lakes of the Himalayas are abundant in fish resources.
• States like Himachal Pradesh have developed aquaculture, exemplified by fisheries in the Bhakra Dam reservoir.

5. Mining

• The Himalayas are rich in minerals such as limestone, coal, and gypsum.
• Limestone quarries in Himachal Pradesh are valuable for industrial applications.

Significance

The Himalayas act as a foundation for India’s primary industries, supporting livelihoods and contributing to the economy. Sustainable practices under initiatives like the National Mission for Sustaining the Himalayan Ecosystem ensure the region’s ecological preservation while fostering growth.

Model Answer

1. Lack of Large-Scale Industries: India’s textile sector is dominated by small, informal weaving and processing units. Complex labor laws, weak export contract laws, and challenges in hiring and firing employees deter large-scale investments, reducing the sector’s competitiveness.
2. High Production Costs: The absence of technological advancements in small-scale units and lack of economies of scale results in higher production costs and inferior product quality. This makes Indian textiles less competitive compared to countries like China and Vietnam.
3. Trade Barriers: India lacks free trade agreements (FTAs) with key textile-importing markets, leading to higher prices for Indian products. Countries like Bangladesh benefit from duty-free access to the EU, offering them a significant advantage.
4. Declining Cotton Production: India’s cotton production dropped to a 15-year low in 2023-24, while countries like China benefit from intensive farming techniques that boost their cotton production, further affecting India’s textile industry.
5. Low Labour Productivity: The Indian textile industry suffers from low labour productivity, caused by a shortage of skilled workers and outdated technologies. China, for example, has nearly double the labour productivity compared to India.

Measures to Enhance Competitiveness

1. Promotion of Synthetic Apparel: Shifting towards synthetic fabrics would allow Indian textile manufacturers to produce year-round, overcoming the seasonal limitations of cotton-based industries and increasing production.
2. Strengthening Weaving and Processing Sectors: Establishing large-scale, formal weaving and processing units would help standardize quality and improve production efficiency.
3. Industry-Friendly Labour Laws: India should introduce flexible labour laws to encourage large-scale investments, such as those seen in the services sector, which would improve industry growth.
4. Negotiating Trade Agreements: India should prioritize ratifying preferential free trade agreements with key markets like the EU, UK, and Canada to ensure competitive pricing and improved market access.

Government Initiatives

• The government has implemented schemes like PM MITRA Parks, Production-Linked Incentive (PLI), and the National Technical Textiles Mission to bolster the textile sector. These initiatives aim to meet the export target of $65 billion by 2026 and generate new employment opportunities.