Impact of Modern Technology in Handloom Industry of United Nalgonda District, Telangana: A Cost-Benefit Analysis

Abstract

The handloom industry is basically a labour based, and family-based industry, requiring low capital and energy, eco-friendly, flexibility of design changing as per market requirements. This paper is focused on the impact of usage of modern technologies with comparison to traditional technology in different production processes of the handloom sector in the United Nalgonda district based on the cost-benefit analysis. The impact of technology is assessed in the terms of net present value (NPV), NPV per man hour, labour production per month and differential benefit. The study included the costbenefit analysis in the pre-loom processes of handloom production. It is found that the impact of modern technologies is more when compared to traditional practices. The differential benefits of modern technologies have a positive impact over the traditional practices. The differential benefits and discount rates have an inverse relationship, whereas it has the direct relationship with the wage growth rates.