IIM Bangalore and King’s College London unveil collaborative research project
The project examined supply chains and access to bank credit for MSMEs, focusing on carpet-weaving handicrafts clusters in Kashmir, Rajasthan and Uttar Pradesh
IIM Bangalore (IIMB) and King’s College London (KCL), in collaboration with their non-academic partner, the Federation of Indian Chambers of Commerce and Industry (FICCI), hosted a conference titled, ‘UK-India Trade: Small Firms and Global Ambitions’ in New Delhi.
Held at the India International Centre, the event unveiled key insights from a three-year collaborative research project. The conference saw the presence of policymakers and stakeholders from academia, government and industry, who engaged in an in-depth discussion on the future of MSMEs, particularly in the handicrafts sector, and their global growth potential.
The three-year research project, ‘Enablers and Obstacles to UK-India Trade (2021-2024),’ has been funded by the UK Economic and Social Research Council (ESRC) and the Indian Council of Social Science Research (ICSSR).
Led by principal investigators Prof Kamini Gupta and Prof Sunil Mitra Kumar of King’s College London, and Prof Prateek Raj from the Strategy area at IIM Bangalore, the research stresses upon the challenges and opportunities for Micro, Small and Medium Enterprises (MSMEs) in bilateral trade between the UK and India.
“Our research reveals that India's handwoven carpet industry is composed of small firms with truly global ambitions. While we found that market linkages and demand-side factors are more pressing concerns than credit access, there is significant potential for growth. Kashmir, for instance, could boost its luxury carpet exports with better export assistance and innovation support. Uttar Pradesh and Rajasthan could benefit from exploring new export destinations and focusing on higher-quality products. Importantly, this traditional yet innovative industry has the potential to become a major source of job creation, particularly for women, which could have a transformative impact on regions like Bhadohi, Srinagar and Jaipur', said Prof Prateek Raj from IIM Bangalore.
{{/usCountry}}“Our research reveals that India's handwoven carpet industry is composed of small firms with truly global ambitions. While we found that market linkages and demand-side factors are more pressing concerns than credit access, there is significant potential for growth. Kashmir, for instance, could boost its luxury carpet exports with better export assistance and innovation support. Uttar Pradesh and Rajasthan could benefit from exploring new export destinations and focusing on higher-quality products. Importantly, this traditional yet innovative industry has the potential to become a major source of job creation, particularly for women, which could have a transformative impact on regions like Bhadohi, Srinagar and Jaipur', said Prof Prateek Raj from IIM Bangalore.
{{/usCountry}}“Unlocking the potential of India's handwoven carpet industry requires addressing two critical factors: access to credit and social networks. Our research reveals that small firms prefer inter-firm credit from suppliers or customers to formal options, highlighting the importance of relationships in facilitating global trade. By understanding the specific needs of each cluster, such as export assistance in Kashmir or quality upgradation in UP and Rajasthan, we can enhance the industry's global competitiveness and boost MSME participation in international trade," said Prof Kamini Gupta of King’s College London.
'India-UK trade presents immense potential, especially in services, investment and key sectors like handicrafts and textiles. With renewed focus on a free trade agreement, we anticipate significant opportunities for growth and collaboration. This partnership will drive innovation, bolster exports and strengthen economic ties between two global powerhouses', said Prof Sunil Mitra of King’s College London.
The project examined supply chains and access to bank credit for MSMEs, focusing on carpet-weaving handicrafts clusters in Kashmir, Rajasthan and Uttar Pradesh. The workshop highlighted key findings and explored themes such as UK-India trade, global value chains, social networks and the role of small firms in the global market, mentioned the press release.
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