Planning in the New Federal Balance


the wage-productivity relationship. For instance the higher reject rates of Indian mills, sub-optimal labour allocation, underloading of workers, poor machine utilisation due to yarn breaks and other defects and wasteful use of chemicals, colours and fuel are potential resources of high costs. Perhaps in these matters, the Japanese and other competitors maybe more efficient than India, There is scope for cost reduction in the use of these resources through im- proved practices and methods. A comparison of the performance of Indian mills with foreign mills on the difference aspects referred to above might reveal the scope for internal cost reduction. It is within the control of the managements to explore the level of efficiency of resource use in their mills and to introduce improved practices and methods.