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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

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Linkages between Trade,Development and Poverty Reduction

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  1. Linkages between Trade,Development and Poverty Reduction Suprita Jayaram Prashmita Ghosh

  2. Perception Survey Findings Carpet Industry of India Weaving growth of rural economy

  3. 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

  4. How the IndustryWorks • 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

  5. 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

  6. The finishing stages • Weaving • Latexing/Washing • Packaging • Export

  7. 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

  8. 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

  9. Employment Scenario • Highly labour intensive – providing employment to 2 million • Rural based cottage industry, providing gainful employment to the artisans

  10. Future Employment and Export Target Source: Carpet-e-world 2006

  11. 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

  12. 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

  13. 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 Conclusion

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