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Textile and Automobile Markets in India
Textile and Automobile Markets in India
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Table of Contents
Cover Page1
Introduction3
FDI in Textile Markets3
FDI in Automobile Markets5
Comparison of Textile and Automobile Markets5
Conclusion6
References……………………………………………………………………………………………………………………………………………7
Introduction
Covid-19 has led to many losses being made in most of the markets worldwide. This is due to the new protocols and policies imposed in most of the nations such as total lockdown and curfew. As a result, most of the industries could not transport their products to different international markets. Besides, these companies did not have enough employees since there are those diagnosed with the disease hence forced to stay at home. This is the same case as it is in the Automobile markets. There were many challenges experienced when importing machineries and car spares from nations put under total lockdown. Some automobiles companies such as VolksWagen that have branches in different nations could not conduct their routine activities in the usual way and some of the business activities were forced to be paused. Covid-19 pandemic has seriously affected the growth of the textile industries. Most of the textile units were forced to stop the production processes and many collapsed. The crisis has pushed these industries’ entrepreneurs to take tough decisions such as introducing pay cuts, lay-offs and even asking employees to go on unpaid leaves. This essay will evaluate the impact of Covid-19 on Textile and Automobile markets in India and how the FDI in both markets have changed before and after the Covid-19 pandemic.
FDI in Textile Markets
It is evident that the India Textiles industry has around 4.5 crore employees and includes 35.22 lakh handloom employees workers all over the nation. The industry has contributed to 7% of the industry output between 2018 and 2019. On the other hand, the textile industry in 2018 and 2019 contributed to 2% of the GDP, 5% of the global trade in textile and 12% of the export earnings. Exports of the textiles between April and October 2021 stood at US $22.89 billion. This indicates that the market has a great influence in the economy of the nation and the upkeep of a large percentage of the citizens (Mishra, et al. 2020). The market was however, greatly affected by Covid-19 pandemic that led to many individuals being fired to minimize the production of the cloths as a result of the decrease in the number of people purchasing the cloths. The textile sector has witnessed a spurt in investments during the last five years. The textile industry that includes the printed and the dyed attracted Foreign Direct Investment (FDI) that is worth US $3.75 billion. This was recorded between April 2000 and March 2021. India clothing and textile exports have been predicted to reach 65 billion dollars by 2025. This typically expands at an 11% CAGR.
There is a drop in the amount generated from this sector during and after the pandemic than before the pandemic. For instance, the sector market generated $103 billion in 2020-21. It is however, estimated that the market will generate more in the coming four years which are expected to rise up to $190 billion. Before the pandemic struck completely in the region that is between 2019 and 2020, the industry generated $108 billion. In this amount generated, $75 billion was used domestically in the country while the remainder that constitutes to $28.4 billion was exported to the global market (Nguyen & Vu, 2021). This implies that during and after the pandemic, the textile market in the nation was affected adversely leading to a drop in the amount of money generated. On the other hand, it is evident that the industry had grown before the pandemic and had constituted a large percentage of growth in the national economy. Besides, the industry provides millions of job opportunities to the citizens of the nation hence participating in reducing the poverty rate in the nation. The minister of States for Textiles informed Sabha that the industry’s FDI equity inflow into the nation tallied to $298.67 million in the financial year 2020-2021. This accounts to 14% less than the previous financial year. This implies that since the Covid-19 kicked in, the industry has not being growing as it should be. The foreign investors most probably were stuck in their nations abiding by the covid-19 lockdown rules. Therefore, it became a challenge for the industry ton manage its production costs.
FDI in Automobile Markets
In India, 100% of Foreign Direct Investment is allowed in the Automobile industry. It is evident that the production level of the automobile has gradually increased from 2 million in 1991 to 9.7 million dollars back in 2006 after the industry started participating in the global players in the sector. The automobile industry in India was greatly affected during the pandemic. In 2019, the FDI received in the automobile sector was $2.62 billion, $2.82 billion in 2020 and $1.64 billion in 2021. In 2021, the nation recorded the highest number of people infected with the virus that led to many activities in the nation being shut down. This did not leave aside the automobile industry that was also affected by the pandemic leading to a slightly lower FDI being recorded in the sector (Patnaik, et al. 2020). The amount of FDI recorded in 2021 was lower than any other one from 2015 apart from 2017 which it was recorded to be $1.61 billion. There are many investors in this sector from different nations but due to the situation the covid-19 pandemic had put India into, most of them failed to invest in this market. In 2021, India was put under total lockdown as a result of the new mutant of the pandemic that had killed many people and affected a very large population in the main centers in the nation.
Comparison of the Textile and Automobile Markets
From the analysis, it is evident that the Covid-19 pandemic had adverse effects on both markets. A lower FDI was recorded in both markets during and immediately after the pandemic when compared with the one recorded before the pandemic. This drop was a result of the covid-19 protocols that deterred people from going to public gatherings such as markets, travelling outside and inside the nation even if it is for business purposes and most of them being fired to cut down the production cost and the cost associated with many employees (Dhinakaran & Kesavan, 2020). As a result, there was a low sales rate in the nation both to the citizens in the nation or even in the international markets. However, after the virus was put into control, there is a great improvement as there are more investors from international markets in these sectors that could possibly lead to a positive impact to the markets.
Conclusion
To sum up, Covid-19 pandemic had a negative impact to the economy of most nations all over the world. This is because protocols and policies meant to control spread of the virus deterred people from interacting with each other that constitutes to the biggest part in the business world. Affecting the businesses going on in a nation typically leads to a drop in the economy. Therefore, the drop in FDI in the textile and Automobiles sector influenced the drop of the national economy in India.
References
Das, D., Kumar, K., & Patnaik, S. (2020). The impact of covid-19 in Indian economy–an empirical study. International Journal of Electrical Engineering and Technology, 11(3).Debata, B., Patnaik, P., & Mishra, A. (2020). COVID‐19 pandemic! It’s impact on people, economy, and environment. Journal of Public Affairs, 20(4), e2372.
Dhinakaran, D. D. P., & Kesavan, N. (2020). Exports and imports stagnation in India during COVID-19-A Review. GIS Business (ISSN: 1430-3663 Vol-15-Issue-4-April-2020).
Nguyen, H. K., & Vu, M. N. (2021). Assess the impact of the COVID-19 pandemic and propose solutions for sustainable development for textile enterprises: An integrated data envelopment analysis-binary logistic model approach. Journal of Risk and Financial Management, 14(10), 465.
Texas Voting Rights for Felons
Texas Voting Rights for Felons
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Felony disenfranchisement is a topic of concern for many states in the United States. State governments make their own laws on the issue of convicted felons and their right to vote as there are no federal provisions. Some states give felons the chance to vote after they are released from prison while others require them to complete probation and parole. Only two states, Maine and Vermont, allow people serving jail time to vote while still in prison ((Nonprofit Vote). Other states such as Colorado and Ohio and D.C. allow felons to vote automatically upon their release from prison. Texas, Alaska, and Arizona among others, allow felons to vote after completion of jail terms as well as probation or parole. In other states, matters are much more complicated as individuals have to petition to get their voting rights back. These states include Iowa, Alabama, Kentucky, and Nevada. In the state of Texas, voting rights for those locked up, on parole and ex-convicts are outlined in the 1997 law (Champagne et al.).
Those currently incarcerated and those on parole cannot vote until they complete their sentence and probation or parole. However, ex-convicts who are done with their parole can resume voting. I agree with the voting laws in Texas about convicted felons. Voting is both a right and privilege that the residents of a country and state enjoy. When a person is convicted of a crime, they have many of their rights and privileges taken away from them as a consequence of their actions. Voting is one such privilege that convicted felons should not be allowed to enjoy. People serving jail time should, therefore, have their right to vote suspended until they have been cleared. The same goes for those on probation or parole. They should be able to prove themselves reformed and ready to abide by the rules of the state. However, as soon as they finish their terms and probations, ex-convicts should automatically regain their right to vote as they are assumed to be thoroughly reformed.
The position I have taken concerning voting rights means that things will remain the same for convicted felons, those on parole or probation as well as ex-convicts. The incarcerated and those on parole will not benefit at all from my position, but I believe that it is the right thing to do. In the state of Texas, minority groups make up the bulk of those serving time in prison (Champagne et al.). The minorities, therefore, suffer disproportionately from felon disenfranchisement. My position will affect many candidates for various offices as well as those already holding offices. During the 86th legislative session of 2019, House Bill 1419 was introduced that will allow convicted felons to vote, provided that they are not in prison (Leighton). Those on probation, parole or other sentences would thus be eligible to vote. If this bill is passed, it would have a political impact especially for minority groups who would present more voters at the polls.
The two things I would do to take on the political process to ensure that felon voting rights remain as they are is to lobby my legislator and others not to pass House Bill 1419. A convicted felon should complete their sentence; be it jail time or parole, before they can be allowed to vote again. The issue of felony disenfranchisement is one that should be taken very seriously (Klumpp et al. 43). The laws in the state of Texas are quite fair. However, states like Nevada, Wyoming, and Iowa should ease their regulations and allow for convicted felons to automatically regain their right to vote after completion of their sentences. Texas should implement reforms in the judicial system that has a disproportionate number of minorities convicted and imprisoned.
Bibliography
“Voting Rights for Ex-Offenders by State.” Nonprofit Vote. 10 June 2019. Retrieved from https://www.nonprofitvote.org/voting-in-your-state/special-circumstances/voting-as-an-ex-offender/Champagne, Anthony, and Edward J. Harpham. Governing Texas. WW Norton, 2013.
Klumpp, Tilman, Hugo M. Mialon, and Michael A. Williams. “The voting rights of ex-felons and election outcomes in the United States.” International Review of Law and Economics59 (2019): 40-56.
Leighton, Heather. “Convicted felons on parole could vote if Texas bill passes. These are the potential voter demographics in Harris County.” Rice Kinder Institute for Public Research. 15 April 2019. Retrieved from https://kinder.rice.edu/urbanedge/2019/04/15/convicted-felons-voting-texas-change-politics