An Analysis on the Export Performance of Handicrafts in India

T Arimohan; R Ullamudaiyar; D Antony Singh Dhas

T Arimohan Research Scholar, Department of Economics (Centre for Research), Saraswathy Narayanan College (Autonomous), Perungudi, Madurai District, Tamilnadu
R Ullamudaiyar Research Scholar, Department of Economics (Centre for Research), Saraswathy Narayanan College (Autonomous), Perungudi, Madurai District, Tamilnadu
D Antony Singh Dhas Assistant Professor, Department of Economics (Centre for Research), Arul Anandar College(Autonomous), Karumathur, Madurai District, Tamilnadu

Keywords: small scale industries, semi-urban areas, handicraft, foreign exchange, capital-output ratio, new economic policy

Abstract

The performance small scale industries assumes greater importance during the last decade because of the huge labour force present in the rural and semi-urban areas. India is finding very difficult to enhance investment because of the paucity of the capital. In this regard, the industrial sector, which helps the government of India, is the small scale industries. Handicraft is one such sector where the government can concentrate and increase the employment and foreign exchange by export. Another added advantage is the low capital-output ratio of this sector. The present study tries to analyse and compare the performance of India’s export of handicrafts before and after the introduction of the new economic policy. The study also helps to identify whether the performance of the handicraft sector is up to the expectation of the government of India while introducing the new economic policy. The study has certain conclusion and policy implications.