Challenges Faced by Small Producers and Workers Due to Globalisation ⚠️🏭

1. Rising Competition 📉⚔️

• Small producers and workers have struggled to compete with large multinational companies.
• Globalisation has led to increased imports, making it difficult for local businesses to survive.

2. Case Study: Ravi’s Capacitor Business 🏭🔧

• Ravi started a capacitor manufacturing business in 1992 in Hosur, Tamil Nadu, with a bank loan.
• By 2000, he had expanded his business and employed 20 workers.
• In 2001, the government removed restrictions on capacitor imports under WTO agreements.
• Indian television companies, previously his main clients, shifted to assembling for MNCs.
• Imported capacitors were priced at half of Ravi’s products, leading to a drastic drop in demand.
• By 2001, his production had reduced to less than half, and he had to let go of most workers, retaining only seven.
• Many of Ravi’s peers in Hyderabad and Chennai were forced to shut down their businesses.

3. Impact on Small-Scale Industries 🏢⚠️

• Several industries have been severely affected by foreign competition, including:
  • Batteries 🔋
  • Capacitors ⚡
  • Plastics 🏭
  • Toys 🧸
  • Tyres 🚗
  • Dairy products 🥛
  • Vegetable oil 🌿
• Many small manufacturing units have shut down, leading to widespread job losses.

4. Employment Crisis in Small and Medium Industries 👷‍♂️📉

• Small and medium industries are crucial to India’s economy, employing 11 crore workers—second only to agriculture.
• With increasing competition and business closures, millions of workers have become unemployed.
• Lack of government protection and financial support has worsened their situation.