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Sericulture has been developed in India as an agro-based cottage industry with considerable employment potential. A very significant character of this industry is its ability to provide gainful occupation for a sizeable section of rural mass without dislodging them from their homesteads, especially in the drought-prone areas. There is a considerable literature on sericulture industry. But, more knowledge is available in the form of published articles and books as regards the scientific aspects of sericulture/silk industry. The studies on the economics and financing of sericulture industry are scanty and did not receive adequate attention. Hence, more studies need to be undertaken. The present study is a modest attempt and covered the economic and financial aspects of sericulture industry, especially in the drought-prone areas. The major chunk of the work involves field investigations. Schedules were constructed and pre-tested for collecting primary data from the sample respondents (Sericulturists/farmers). Secondary data was also collected from different sources. Both the data were properly processed and analysed to arrive at meaningful inferences.