State of fabric producing units in India

Abstract

The estimates in the government funded survey of handloom and powerloom sectors of the number of units, looms and employment are not reliable since they are especially designed to identify units eligible for sector-specific schemes. The Unit-wise Annual survey of Industries and the NSSO 62nd round data for 2005-06 cover the entire manufacturing data, but the results derived for variables such as value added, output, fabric production etc are also not considered reliables as the small units have a tendency to under report their production in order to retain the benefits of small-scale sector tax incentives. This paper presents an analysis of the National Counicl of Applied Economic Research sample survey, which was designed to estimate the weighted per unit ratio for various size classess of units belonging to the handloom, powerloom mill and kitting sectors