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Synopsis The Study in question depicts the nature and character of handloom activities in its traditional and classic from and the changes introduced by development and planning. The industry is studied disaggregatively by major types of product, i.e. by detailing a broad product called handloom cloth. It has highlighted the sociological aspect of production by considering the association between caste and product. The economic analysis pursued is superior in the sense that the author has put the questions he is addressing in the form of hypotheses and tested them with refined statistical tools. The study also talks of potential demand and potential supply and thus has presented a fairly detailed and illuminating account and analysis of the problems faced by the industry. Apart from these, certain innovative analytical tools such as working capital, net surplus, caste factor etc., has also been employed to derive meaningful statistical and economic relation. An analysis of comparative cost advantages is also incorporated which as a special relevance to a theory of specialization and economies to scale which the study has purported to outline.