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Indian Carpet Industry after Trade Liberalization. Problems and Prospects

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  • M. Rashid Malik
  • Rekha Prasad

Abstract

This paper aims to examine the constraints and opportunities emerged for the Micro, small and medium enterprises in carpet industry after trade liberalization. The survey method was selected for this study. A structured questionnaire, containing both close and open ended questions was used for data collection. 65 carpet firms of Bhadohi District of Uttar Pradesh registered with All India Carpet Manufacture Association (AICMA) were surveyed. Liberalization has brought many opportunities for carpet industry apart from challenges. Findings of the present study show that liberalization gave access to new markets and increased demand of products. Increased cost of raw material, difficulty in ‘export facilitation’ and ‘legal-regulatory framework and difficulty in procuring funds from local financial institutions were identified as the major constraints for the carpet industry.

Suggested Citation

  • M. Rashid Malik & Rekha Prasad, 2015. "Indian Carpet Industry after Trade Liberalization. Problems and Prospects," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 1(3), pages 79-87, September.
    • Handle: RePEc:khe:scajes:v:1:y:2015:i:3:p:79-87
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    References listed on IDEAS

    as
    1. World Bank, 2002. "Global Economic Prospects and the Developing Countries 2002," World Bank Publications - Books, The World Bank Group, number 14050.
    2. S.M. Shafaeddin, 2005. "Trade Liberalization And Economic Reform In Developing Countries: Structural Change Or De-Industrialization?," UNCTAD Discussion Papers 179, United Nations Conference on Trade and Development.
    3. Das, P. K. & Shukla, K. P. & Öry, F. G., 1992. "An occupational health programme for adults and children in the carpet weaving industry, Mirzapur, India: A case study in the informal sector," Social Science & Medicine, Elsevier, vol. 35(10), pages 1293-1302, November.
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    More about this item

    Keywords

    Carpet industry; trade liberalization; India; Bhadohi;
    All these keywords.

    JEL classification:

    • L69 - Industrial Organization - - Industry Studies: Manufacturing - - - Other

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