Globalization and its Impact on Cottage industries in Jammu and Kashmir

ABSTRACT

Globalization alludes to the process of joining the world into one huge market. It means a course of privatization, internationalization, and liberalization. It is the most common way of coordinating different economies of the world without making any deterrents in the free flow of goods and services, technology, capital, and even labor or human capital on one side. On the other side, it led to "unequal competition and this competition severely affected the whole industrial sector of India as well as a cottage industry in the state of Jammu and Kashmir. Kashmir is popularly known as the paradise on earth and has been very famous in the handicrafts sector for ages. So this sector is mainly labor intensive and hence causes no harm to the economy. Moreover, giving work to educated as well as uneducated people in both rural and urban areas acts as a subsidiary income for the farmers who remain jobless during the offseason and thus contributes to the economy of the state. Being eco-friendly, this sector suits the state as it is more labor-intensive and less capital-intensive in nature, therefore, having scope for employment generation at a large scale. In economic terms, it helps in generation of aggregate employment and raising per capita income of state. With the passage of time, this inimitable gainful economic activity is not flourishing with the pace as the other sectors are showing. So this paper will principally focus on how this industry is confronting various obstacles in overall growth and development like poor infrastructure, financial problems, and political instability. It will likewise take a look at how Western preferences were viewed as the sign of the hallmark of the Enlightenment. As a result demand for indigenous products declined while that for Western products expanded. Furthermore, this study will focus on the role of the cottage industry in the economic development of Jammu and Kashmir as well as the effect of globalization on its development and how homegrown and cottage handicrafts could not possibly have withstood foreign competition which was backed by a powerful industrial organization.

FULL TEXT