Transcript Linkages between Trade ,Development and Poverty Reduction

Linkages between
Trade,Development and
Poverty Reduction
Suprita Jayaram
Prashmita Ghosh
Perception Survey Findings
Carpet Industry of India
Weaving growth of rural economy
Overview of the Industry
• Carpet Weaving, one of the oldest
industries in India
• Dates back to the 16th century( 1580 AD)
• Spread over some specific belts in India-Mirzapur-Bhadohi, Agra,Jaipur and
Kashmir
• Highly labour intensive, forming a
considerable part of the handicraft industry
• Provides livelihood to about 2.5 million
artisans and earns a significant foreign
exchange
How the Industry Works
• Raw Materials : Wool, Silk, Cotton
• Indian Carpet Industry – primarily wool
based.
• Wool imports from- Australia, New
Zealand and Morocco
• India- Bikaner belt major supplier of
Wool
• Dyeing Industries:
• Chemical Dyes
• Natural Dyes—Indigo plant, cochineal
insects, fruit, wild rose and other
indigenous products
• Dyeing processes
• Power driven mills
• Traditional dyeing mills
The finishing stages
•
•
•
•
Weaving
Latexing/Washing
Packaging
Export
Carpet Export Promotion Council
(CEPC)
• Set up in India in 1982
• Headquartered in New Delhi with
centres around the carpet belt
• Advises and assists the government on
export promotional measures
• Identifies potential markets, conducts
promotional fairs, buyer-seller meet etc
• Provides financial assistance to new
exporters
CEPC (contd.)
• CEPC has taken up initiative to establish
warehouses in USA and other countries for focussed
selling
• CEPC provides Market Development Assistance
(MDA) scheme
• CEPC arranges workshops with bank officials and
exporters
• The objectives coincide with that of the Foreign
trade policy, (1)double India’s percentage share of
global trade within the next 5 years, (2) act as an
effective instrument of economic growth by giving
thrust to employment generation in the rural areas
Employment Scenario
• Highly labour intensive – providing
employment to 2 million
• Rural based cottage industry, providing
gainful employment to the artisans
Future Employment and Export
Target
Year
2005
Employment
Exports
(million)
(USD billion)
2.00
0.60
2010
3.25
1.20
2015
5.00
2.40
Source: Carpet-e-world 2006
Problems of the Carpet Industry
• Changing businessmen priorities
• Change in Consumer priorities abroad
• Unethical business practices and its chain
effect
• Problem of advances to weavers/loom
owners
• Dishonouring orders by clients
• Child Labour
• Overall depression in global markets
Recommendations from
Stakeholders
• Publicising the real value by
emphasising the cultural, unique and
aesthetics aspects.
• Creating innovative designs for
promotion and increased competency
• There should be prompt availability of
loans
• Media should be optimally used for
effective marketing
Conclusion
With appropriate efforts by the CEPC,
government officials, the production/
exports problems of the manufacturers/
exporters in this industry can be
addressed to solve the rural employment
problems