ABSTRACT The paper primarily examines the employment, value chain, and technological aspects of the wood-base furniture industry, a hotbed micro and small enterprise in the border state of Manipur, India. The study is based on 191 wood-based furniture units, which are selected through a census survey of clusters and a sampling survey of the non-cluster units. The study finds the dominance of home furniture in the furniture sector. The study finds high employment intensity in clusters vis-à-vis non-clusters. Furniture units have developed strong linkages with the upstream industry – the sawmill industry, and the bulk of the highly-demand species of furniture, like bonsum (Phoebe hainesiana) and champa (Michaelia champaca), are sourced from within the state itself, indicating a robust local value chain. Technology is still the Achilles heel for most units, which use semi-mechanized tools and manual-driven machinery. Cultural and social factors are driving the production and scale of furniture units rather than technology. The study emphasizes the need to revive the state's depleted hardwood forest, which is largely under community control, technological upgradation, and skilling of workers for sustainable growth and greater participation in regional and global value chains.
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