Export Assistance Programme and Handloom Industry: A Literature Review.

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Published Sep 8, 2021
Prof. Gautam



Handloom Industry remains among the most antiquated industry, and it makes employment opportunities for monetarily flimsier individuals of the all-inclusive community close by the agriculture industry in India (P. S. Kumar, 2014). The most recent census led in 2009-10 uncovered that 43.31 Lakh handloom weavers and related specialists work approx. 23.77 lakh handlooms units. The handloom industry provides both immediate and aberrant work to handloom weavers (Dissanayake, Perera, & Wanniarachchi, 2017). The handloom area is circulated, disordered, and nation-based, making a specific and unique spot in the Indian economy. The handloom industry advances an enormous area of weavers and associated labourers who have a place with lower salary gatherings. The handloom industry is labour-intensive and has no immediate impact on the earth (R. R. Kumar & Gopal, 2020). The handloom industry engaged with about 15% of the material creation in India and added to the nation's export earnings. India creates a sum of 95% of the world's handmade fabric that speaks to the ace class of Indian weavers and the centrality of handloom fabrics from an Indian point of view (Mishra & Das, 2021).

Export Assistance programme of Handloom Industry

Export assistance is a primary requirement of the industry that seeks operation in the foreign market. Focusing on the handloom industry, the government introduced various export assistance programmes to make exporting procedures smooth, providing the ultimate benefits to the industry and the nation's economy. The highlights of the export assistance programme are mentioned below:

  • Market Access Initiative Scheme (MAI)
  • National Handloom Development Programme:
  • Duty-free import entitlement of specified trimmings and embellishments:
  • Supply of yarn at mill gate price:
  • Duty Drawback:
  • Merchandise Exports from India Scheme (MEIS):

Literature Review

Export Assistance Programme

Government export promotional programs usually define the premise for successful exporting activities of the corporate sector and play a key role in stimulating the international business activities of firms. Still, a systematic examination of their causal relation with export performance is scarce (Han & Park, 2019). An extensive literature search reveals that most mainstream studies on export performance are narrowly focused on firm-related determinants. Only a handful of studies have explored the impact of export promotional programs on export performance (Ali & Shamsuddoha, 2014). While the extent of use of export assistance was reported to have a positive impact on firm export growth, national export promotion policy was found positively related to export performance (Mah, 2011). Interestingly, none of these studies theorized the impact of export promotion on any firm or organizational factors that are directly benefited by using any government assistance program. Most export promotion related studies have examined managers' usage of and satisfaction (Quaye, Sekyere, & Acheampong, 2017).


Since export firms are a significant factor in the growth of international trade, they improve trade balances, provide employment and boost profitability. There is a need to identify the elements of export performance that affect the handloom industry. The Government of India and the State Government have introduced many developments and welfare schemes for the survival and sustenance of the handloom industry alongside export assistance programmes for encouraging exports. There has been a growing interest in the internationalization and the export literature concerning the effects of export assistance programmes in helping export ventures achieve superior performance in international markets. There are several export assistance programmes as well. Still, there is a need to study the credibility of those export assistance programmes in enhancing the export performance of the handloom industry.


The export performance of the handloom industry depends on the factors or determinants of export performance considered during export procedures alongside the export assistance programme for the betterment of export. If the export decreases gradually, then there are issues among those procedures and need to identify them. So, there is a need to cater for those issues that cause low export performance and find the solution that could help the exporting firms increase the export activities by utilizing the export assistance programme.

How to Cite

SINGH, V. K., & Gautam, A. (2021). Export Assistance Programme and Handloom Industry: A Literature Review. SPAST Abstracts, 1(01). Retrieved from https://spast.org/techrep/article/view/211
Abstract 11 |

Article Details


Handloom industry, Export assistance, Financial support, Informational services, Facilitating activities

Ali, M. Y., & Shamsuddoha, A. K. (2014). Impact of export promotion programs on SME export performance: Empirical evidence from an emerging nation. Research Handbook on Export Marketing. Retrieved from https://sci-hub.do/https://www.elgaronline.com/view/edcoll/9781781954386/9781781954386.00006.xml
Dissanayake, D. G. K., Perera, S., & Wanniarachchi, T. (2017). Sustainable and ethical manufacturing: A case study from handloom industry. Textiles and Clothing Sustainability, 3(1), 2. https://doi.org/10.1186/s40689-016-0024-3
Han, J. H., & Park, H.-Y. (2019). Sustaining Small Exporters' Performance: Capturing Heterogeneous Effects of Government Export Assistance Programs on Global Value Chain Informedness. Sustainability, 11(8), 2380.
Kumar, P. S. (2014). Handloom Industry in India: A Study. International Journal of Multidisciplinary Research and Development, 2(1), 24–29.
Mah, J. S. (2011). Export promotion policies, export composition and economic development of Korea. Law and Development Review, 4(2), 3–27.
Mishra, K., & Das, D. T. K. (2021). THE ROLE OF SAMBALPURI HANDLOOM IN THE ECONOMIC GROWTH OF BARGARH DISTRICT ODISHA. PalArch's Journal of Archaeology of Egypt / Egyptology, 18(1), 3345–3364.
Quaye, D. M., Sekyere, K. N., & Acheampong, G. (2017). Export promotion programmes and export performance. Review of International Business and Strategy.
SMH1: Management