India's Handloom Industry: Significance & Challenges Faced

Context (PIB): The Ministry of Textiles celebrated the 11^th National Handloom Day on August 7, with national weaver awards presented to the skilled weavers.

India’s Handloom Industry: Status

The handloom sector is India’s largest cottage industry with 2.8 million looms in operation.
It is the second-largest employment provider in rural India after Agriculture, engaging around 35.22 lakh workers, of which 72% are women.
In FY24, India exported handloom products worth Rs 1,146 crore. The USA was the top importer, followed by the UAE.

Cultural Heritage: The Banarasi saree, Pochampally ikat, and Kanchipuram silk are globally recognised for their intricate designs and craftsmanship.
Sustainable and Eco-Friendly: Handloom weaving uses natural fibres like cotton, silk, and wool, which are biodegradable and environmentally friendly.
Rural Economy Support: The industry plays a vital role in the rural economy by supporting livelihoods and generating income for families.
Promoting Gender Equality: Women constitute about 70% of the total handloom workforce.

Competition from Power Looms and Machine-Made Products: The introduction of polyester flags for the Har Ghar Tiranga campaign highlights the preference for cheaper products over handwoven khadi.
Erosion of the Flag Code’s Original Intent: The Flag Code of India was amended in 2021 to allow machine-made polyester flags, replacing the earlier requirement for hand-spun and hand-woven khadi.
Lack of Market Access and Branding: Despite global demand for sustainable and fair-trade products, Indian handloom has not been effectively marketed to a global audience.
GST and Tax Burdens: GST on raw materials like yarn, dyes, and chemicals increases production costs, squeezing the already thin margins of handloom weavers.
Declining Government Support: Government initiatives like the Vishwakarma Yojana exclude handloom weavers and existing khadi cooperatives lack sufficient support and resources.
Inadequate Wages and Poor Working Conditions: Handloom weavers earn meagre wages of ₹200-₹250 per day, despite the labour-intensive nature of their work.

National Handloom Development Programme (NHDP): Central sector scheme for comprehensive development and self-sustainability of handloom clusters at the block level.
Handloom Mark Scheme: Brands handloom products, ensuring authenticity and securing a premium market position domestically and internationally
Yarn Supply Scheme: Ensures regular supply of quality yarn at reasonable prices through NHDC and state governments.
Comprehensive Handloom Cluster Development Scheme (CHCDS): Develops mega handloom clusters (15,000+ looms) with funding for technology, product development, and marketing.
Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS): Provides life and accidental insurance for weavers aged 18-50, offering up to Rs. 2 lakhs for death or disability.

Celebrated on 7^th August since 2015 to mark Swadeshi Movement 1905, promoting handlooms & indigenous industry.
Cultural Heritage: Banarasi, Pochampally, and Kanchipuram sarees are renowned globally.
Mass Employment: The handloom sector is the second-largest employer after agriculture, providing livelihoods to over 35 lakh people, with 70% being women.

Restoration of Khadi and Handloom Identity: Khadi should be reinstated as the sole fabric for the national flag, emphasizing its cultural and historical significance.
Tax Reforms: Exempt handloom products from GST or introduce subsidies on its raw materials.
Financial Support: Provide easy credit access to handloom weavers through schemes like MUDRA loans.
Global Branding and Market Expansion: Launch global campaigns to promote Indian handloom as a luxury and sustainable product.
Strengthening Cooperatives and Local Institutions: Empower handloom weavers to form cooperatives and self-help groups for better bargaining power and market access.