In recent news, the Government of India has introduced numerous measures to bolster and address pressing issues in the handloom sector, a part of the textile industry, which has taken a hit during the pandemic. To clarify, textiles refer to threads used for knitting, or the fabric that is ultimately produced, while handloom refers to the manufacturing aspect, encompassing both workers and machinery used for weaving.
Government Initiatives
To support this vital sector, the Ministry of Textiles has put forth several initiatives. First, they reached out to state authorities, encouraging State Handloom Corporations, Cooperatives, and Agencies to buy finished inventory from handloom weavers and artisans.
Embracing E-Commerce
To facilitate better business opportunities for artisans, the Government has started registering weavers on the Government e-Market places (GeM portal), providing them a platform to sell their merchandise directly to various Government Departments and organizations. So far, approximately 1.50 Lakh weavers have been registered on the GeM portal.
Formation of Handloom Producer Companies
As a measure to augment productivity, marketing capabilities, and ensure healthier incomes, the government has established 128 Handloom Producer Companies across various states.
Financial Assistance and Support
Under the Concessional Credit/Weaver MUDRA Scheme, financial aid, interest subvention, and credit guarantees are being offered to assist the sector. In addition, Design Resource Centers (DRCs) are being set up in Weavers’ Service Centers in metropolitan cities like New Delhi and Mumbai.
Promoting Handloom Products & Supply Schemes
To further promote the marketing of handloom products, the Handloom Export Promotion Council has begun organizing international fairs in a virtual format. Furthermore, there is an ongoing effort to make yarn available to handloom weavers throughout the country via the Raw Material Supply Scheme.
Education and Empowerment for Weavers
In order to help weavers access the benefits from various welfare schemes and promote socio-economic development, numerous Chaupals have been organized across various states.
The Significance of the Textile Sector
The textile sector holds significant importance in the Indian economy, contributing 7% to manufacturing output, 2% to GDP, and 12% to exports. It also employs, directly and indirectly, approximately 100 million people.
Challenges the Textile Sector Face
Despite its importance, the textile sector faces some challenges. These include fragmentation, outdated technology usage, complicated tax structures, stagnant exports, lack of scale, and limited foreign investment.
Moving Towards an Organized Sector
Some potential solutions include setting up mega apparel parks and common infrastructure, modernising machinery and technology, rationalising labour laws, and enhancing export opportunities through trade agreements with developed countries.
