Weaving is a method of textile production in which two distinct sets of yarns or threads are interlaced at right angles to form a fabric or cloth. Kashmir handicraft products have earned worldwide fame for their attractive designs, functional utility and high-quality craftsmanship. In the absence of other manufacturing industries in the state, handicrafts have remained a key economic activity from time immemorial and engage approximately 374,000 artisans. Crafts like shawls, crewel work, namdha, chain stitch, wood carving, papier maché, costume jewellery, kani shawls and the carpets hold a significant share in the overall production and exports of the state. Carpet weaving is an essential craft, both at national and state levels, in its overall contribution to employment and revenue.

The hypothetical trade-off relationship between inflation and unemployment rate known as the Phillips Curve. It plays an important role in the decision-making process, to stabilise the economy and to target these variables to keep them as low as possible. This study analyses the empirical relationship between unemployment and the inflation rate in order to predict the trade-off between these two variables and to estimate its existence in the context of Indian economy over the period of 1991 to 2017. It finds both short and long run causal relationship between unemployment and inflation rate in India.