Technology, Trade Liberalization, Provisional Advantage and Potentiality of Indian Handloom Sector: A Research During Reform Period
A R Dash1, M U Farooque2
1A R Dash, Assistant Professor, Department of Commerce and Management, SGT University, Gurugram (Haryana), India.
2M U Farooque, Associate Professor, Department of Commerce and Management, SGT University, Gurugram (Haryana), India.
Manuscript received on 22 August 2019 | Revised Manuscript received on 11 September 2019 | Manuscript Published on 17 September 2019 | PP: 1495-1501 | Volume-8 Issue-2S8 August 2019 | Retrieval Number: B10890882S819/2019©BEIESP | DOI: 10.35940/ijrte.B1089.0882S819
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Traditionally Handloom sector was the backbone of Indian industry and the essence of Indian civilization and culture. After the evaluation of industrialization the handloom industry is facing stiff competition with power loom and consistently upgrading technology and other industries, nevertheless, the handloom industry has the significant contribution in the India’s international as well as intra-national trade. With this background, the present paper will examine the comparative advantage of Indian handloom industry with respect to global economy by applying the Ballasa (1965) index of Revealed Comparative Advantage (RCA) and also examine the export competitiveness by using Porter Export competitiveness model, using highly disaggregated data from 2004 – 2013 by using WITS (World Integrated Trade Solution) WTO data set and the export performance of Indian handloom products during 2013-18 from the handloom export promotion council data set. Under the International classification of commodities at six-digit level, there are 21 groups are classified as the handloom products. This paper has calculated and analyzed the Revealed Comparative Advantage (RCA) of all handloom commodities at disaggregate level. Result shows that India has high revealed comparative advantage in almost all the handloom products, it’s in total 22 hand product India has high comparative advantage in 15 products and having a slight disadvantage in only 6 handloom products in studied and analyzed period of subsequent year 2004-2013. However, the export competitiveness indices show also the export advantage edge in handloom products. It shows that there is high potentiality of growth in handloom industry but lagging under capacity it lies behind it. This paper suggests government initiatives for the realization of handloom sector at its optimum level.
Keywords: Handloom Trade, WTO, Revealed Comparative Advantage, Export Competitiveness.
Scope of the Article: e-governance, e-Commerce, e-business, e-Learning