India's Engineering Exports: Growth, Concentration and Diversification

The unprecedented increase in competition as well as protectionism in world markets makes it imperative for a country like India to get much more energetically involved in the export business and make the dictum "export and flourish" a really true proposition, as against a somewhat passive "export and perish" approach followed during the last three and a half decades. At present, India needs to evolve new export strategies to cope with the changing international scenario and to ensure a steady improvement in the otherwise sagging export performance. A search for such strategic measures becomes all the more important in view of the all-out efforts of the government for expanding the country's exports to tide over the crippling balance of payment deficits and to generate necessary foreign exchange to meet the import requirements for accelerating the tempo of economic development. The present study is an endeavour in this direction. Taking engineering exports as an example, the study demonstrates alternative ways of understanding indepth export performance analysis and learning lessons for better performance in future

Efficacy of Cluster- Based Approach for the revival of Handloom Co-operative Societies in Kerala- with special reference to Thiruvananthapuram and Kannur Districts

one of the key sectors, identified by the Department of Industries Government of Kerala, for the cluster development initiative is Handloom, which gives employment to over over 50,000 people directly. Despite its age old tradition and fame, the performance of the sector vis-à-vis power looms is not very rosy owing to (i) competition from cheap power loom cloth from other states (ii) scarcity of quality yarn (iii) price escalation of yarn, dyes, chemicals and other raw materials (iv) the shrinking market for handlooms in Kerala (v) non-demand based production and inadequacy of new designs and (vi) inefficiencies in the system, particularly in the co-operative sector. Cluster based approach is adopted in the handloom sector with the objective of providing necessary support mechanism to come out of the crisis that the sector faces now. While four cluster schemes are being implemented in Kerala, it is under IHDS-CDP that the State got a sizeable number of clusters benefiting a large number of societies and weavers- 24 handloom clusters, bringing 152 handloom co-operative societies and over 19,800 handloom workers under the Programme. This research attempts to revisit the underlying rationale and context of the new direction and would attempt to broadly analyze the growth trends under the influence of cluster model adopted by the State IHDS-CDP for the revival of handloom sector through a detailed study of the handloom co-operative societies in Kerala. If handloom sector in Kerala can be revived using cluster based approach, it can be easily concluded that cluster is capable of taking the MSME in Kerala to a ‘high growth path.’ The study is aimed at understanding how best clusters emerge as appropriate industrial organization suitable for the current global structure of manufacture

Learning From Cross Country Experiences In Housing: A Micro Finance Approach For Inclusive Housing In India

Housing is one of the primary human needs. It is second only to the need for food and clothing. From a macro perspective, housing is an industry that can prove itself to be a growth engine for a nation, particularly a developing nation like India. Housing has been one of the top priorities for the various governments in India since the seventies. The need for housing has been increasing at a phenomenal pace in India and so also the need for housing finance. Since the growth in supply of housing could not keep pace with the growth in its demand, housing shortage has been on the rise over the years. Housing finance industry which was relatively dormant till the early nineties underwent sweeping changes ever since the initiation of financial sector deregulation measures. Financial deregulation measures brought about several changes in this industry, the first and foremost being the fast growth rate in the industry coupled with cutthroat competition among the industry players. This trend has been quite prominent since the entry of commercial banks into this arena. Accordingly, there has been a surge in the growth of retail (personal) loans segment, particularly in respect of housing loans. This is evident from the fact that housing loans disbursed by banks as a percentage of their total loans has increased from just 2.79% as of end-March 1997 to as high as 12.52% as of end-March 2007. Thus, there has been an unprecedented growth rate in the disbursement of housing loans by banks, and as of 31 March 2007 the outstanding balance of housing loans by all banks in India stands at Rs.230689 Crore, as against just Rs.7946 Crore as of 31 March 1997, the growth rate being 35.82 %CAGR (for the eleven years’ period, FY 1997-‘2007). However, in spite of the impressive growth in housing finance over the years, there are growing apprehensions regarding its inclusiveness, i.e. accessibility to the common man, the underprivileged sections of the society to housing finance etc. Of late, it is widely recognized that formal housing finance system, particularly the commercial banks (CBs) – most dominant among the players – is fast becoming exclusive in operations, with nearly 90% of the total housing credit going to the rich and upper middle income group, primarily the salaried class. The case of housing finance companies (HFCs) is quite similar in this regard. The poor and other marginalized sections are often deprived of adequate credit facilities for housing purpose. Studies have revealed that urban housing poverty is much more acute than the rural probably because of the very fast process of urbanization coupled with constant rural to urban migration