ANALYSIS FOR RECOMMENDATION FOR

INVESTMENT PROJECTS THAT OFFER THE HIGHEST

FINANCIAL RETURNS IN THE STATES
OF
TRIPURA & ASSAM

ASSAM

TRIPURA

NATASA GHOSH
APPLICATION NO : 221510003925
BATCH OF 25
 Economic Analysis Market Demand Assessment Financial Calculations & Investment Recommendation

TRIPURA ASSAM
GROWTH IN GROSS DOMESTIC PRODUCT(current prices) (rupees lakhs) GROWTH IN GROSS DOMESTIC PRODUCT(current prices) (rupees lakhs)

• Growth in productive capital from 2015 to 2020 is 78.9% (from 34600 to 61907 lakhs) • Growth in productive capital from 2015 to 2020 is 143% (from 2730729 to 4183207
• Among with production by small scale industries is 1177.84 crores lakhs)
• Among with production by small scale industries is 13403.27 crores
• the per capita income of
Tripura for the fiscal • the per capita income
year 2019-2020 was of Assam been lower
approximately INR than the national
1,20,494 average. In the fiscal
year 2019-2020, the
Investment Production
per capita income of Investment Production
MSME (in crores) Assam was INR
661.73 1177.84 MSME (in crores)
(census 2005-06) 73,370 6941.15 13403.27
(census 2005-06)
(approximately)

Total Population (lakhs) Employment in MSME (lakhs) Percentage working in MSME

TRIPURA 36.7 2.5 6.8

ASSAM 312 18.15 5.8

Source: m.rbi.org.in
 Economic Analysis Market Demand Assessment Financial Calculations & Investment Recommendation

HANDLOOM HANDICRAFTS
India’s Handcrafts export trend (US$ billion)
Tripura Assam
6
0.95 4.3
3.7 3.6 3.5
11 4
2.5 18.15
2

0
2018-19 2019-20 2020-21 2021-22
Involved in Handloom Involved in Handloom
source: EPCH Linear (source: EPCH)
Total employeed in MSME Total employeed in MSME
Category wise share of handicrafts exports revenue (2020-
India’s Handloom export trend (US$ billion) 21)
5.9 6.4
5.5 2.7
380 357.5 353.9 6.1
360 343.3
340 38.3 6.4
315.6
320
300 31
280
2016-17 2017-18 2018-29 2019-20
source: HPEC UK Netherlands Australia UAE
Category wise share of handloom exports revenue France Others USA Germany
• The handloom industry
(2020-21) Most exported handicrafts items
is the country's largest
40 7 cottage industry, with TRIPURA ASSAM
23.77 lakh looms. It is
Cane furniture Bell metal industry
49 also the employing
more than 3 million Panely scroll Fire works craft
people in direct and
Clay pottery Bamboo, cane, sitalpati
4 allied activities.
Tribal jewelry Pottery, wood carving
Fabrics Floor Coverings Clothing Accessories Madeups

Source: ibef.org
 Economic Analysis Market Demand Assessment Financial Calculations & Investment Recommendation

HANDLOOM HANDICRAFTS
National Handloom Development Programme (NHDP) National Handicraft Development Programme (NHDP)
• The Cluster Development Programme (CDP) provides financial benefits to clusters and • The programme's goal is to increase the knowledge of the entire handicrafts sector about
during 2021-22, assisted 66 clusters. new design trends and colour forecasts, in order to increase India’s exports by increasing
• For the development of mega handloom clusters, the Government of India plans to the new design-led product
provide financial assistance of Rs. 30 crore (US$ 3.9 million) to at least 10,000
handlooms. Growth of domestic handicraft Growth in employment
Project Management Cost (max of 15 lakhs) industry
20 16 15
Type of assistance Allocation of money 13.5 10.9
15 9.7
11.1 10 7.9 8.7
Fixed Remuneration Rs. 30,000/- per 9.7
month 10
5
Lump sum towards local travel, telephone etc. Rs. 500/- 5
Administrative Cost Rs. 40,000/- per 0 0
year 2012-13 2013-14 2014-15 2015-16 2012-13 2013-14 2014-15 2015-16
Cost for purchase of computer/printer & related furniture Rs. 1.00 lakh
Bazar Assistance Scheme Cost
Reimbursement attend the meeting convened by the State Rs. 800/- per day for
Director of Handlooms/Head of Office stay Type of assistance Allocation of money
Space rental & Infrastructure Rs. 1500
Growth of handloom industry Return on Investment
8 • A weaver can produce at least ₹30,000- Publicity per day per stall Rs. 300
6 50,000 worth fabric in a month. The
6 TA including per participant Rs. 4000
cost of material is usually 10-15 per
4 cent; this gives a handsome ROI Freight Charges per participant Rs. 2000
2.2 • between 2009-2010 and 2019-2020 has
1.4 DA per day-per artisan Rs. 800
2 0.7 increased by 11.5%, with a
0 corresponding increase in total Insurance per day per stall Rs. 50
production output
2012-13 2013-14 2014-15 2015-16 Misc. Expenses 5% of total of above sub-heads
Administrative charges 3% of total of above sub-heads

Source: iosrjournals.org, NHDP government budgets

 Economic Analysis Market Demand Assessment Financial Calculations & Investment Recommendation

HANDLOOM HANDICRAFTS
Production wise % increase in exports (2020-22)
The Yarn Supply Scheme
• Increase availability of yarns to eligible handloom weavers. Handloom sector is largely 40%
30%
dependent on the organized mill sector for supply of its principal raw material namely 30% 24%
yarns. This sector uses the bulk of its yarn in the form of hanks 19% 21%
20%
• After agriculture, the handloom sector is the 2nd largest income generating activity in the
country 10%
Estimated Production (Figures in Million) (Lok Shaba) 0%
Period Manmade filament yarn Cotton yarn (Kg) Metal wares Woodwares Agarbatti Handprint
source: EPCH
2018-19 1,160 4,208
Comprehensive Handicrafts Cluster Development Scheme (CHCDS)
2019-20 1,688 3,962 • CHCDS aims to assist artisans and entrepreneurs in establishing world-class units with
modern infrastructure, cutting-edge technology, adequate training and human resource
2020-21 (Apr-Jan) 1,226 2,950
development inputs, market linkages, and product diversification.
2021-22 (Apr-Jan) 1,676 3,410 • Domestic marketing events such as Gandhi Shilp Bazaar, Craft Bazaar, and Exhibitions
Return on Investment are organized to provide artisans with a domestic marketing platform.
• The USA is the biggest importer of handloom products from India, consistently the top Global Handmade Carpet Export
importer for the past 8 years. During 2021-22 USA imported handloom worth US$ 33.75 Return on investment
million • The country has 744 handicraft
• The exports to the UK, which was the second largest importer of handloom from India clusters employing nearly
during the same period increased to US$ 6.50 million. 212,000 artisans and offering
over 35,000 products
Category wise exports share (2020-21) (HPEC) • In 2021-22, the total exports of
4.5 8.5 4.5 Indian handicrafts were valued
5 at US$ 4.35 billion, a 25.7%
4
37.3 4.5 increase

32
India Rest of the world

UK Spain Australia Italy France Others USA Germany

Source: ibef.org, government documents

THANK YOU