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 Employment (million) Exports (USD billion) 2005 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