Entrepreneurship Development in the Handloom Industry of Northeast India: A Study on Role of Institutions and Policies

Abstract

The handloom industry in Northeast (NE) India is deeply intertwined with the region’s cultural identity, housing 65.2% of the country’s handlooms and 49.8% of its weavers. It is a major silk production hub, particularly Muga silk, which holds a geographical indication for Assam. The production process stands out for its use of eco-friendly yarns and natural dyes, giving the region a distinct identity in sustainable products. Despite the sector’s significance and its predominantly female workforce (88% of weavers are women), entrepreneurship remains underdeveloped, with low representation of women entrepreneurs (All India Census of MSME, 2016). This paper analyzes the role of institutions and policies in promoting entrepreneurship in NE India's handloom industry, using the framework by Audretsch et al. (2007).