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Indian Handloom Industry: Potential and Prospects

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Indian Handloom Industry: Potential and Prospects EXPORT-IMPORT BANK OF INDIA WORKING PAPER NO. 80 INDIAN HANDLOOM INDUSTRY: POTENTIAL AND PROSPECTS EXIM Bank's Working Paper Series is an aempt to disseminate the findings of research studies carried out in the Bank. The results of research studies can interest exporters, policy makers, industrialists, export promoon agencies as well as researchers. However, views expressed do not necessarily reflect those of the Bank. While reasonable care has been taken to ensure authencity of informaon and data, EXIM Bank accepts no responsibility for authencity, accuracy or completeness of such items. © Export-Import Bank of India September 2018 Indian Handloom Industry: Potenal and Prospects CONTENTS Page No. List of Tables 5 List of Exhibits 7 List of Boxes 7 Execuve Summary 9 1. Introducon 19 2. Indian Handloom Industry : An Overview 21 3. Trade Scenario 30 4. Government Support to the Indian Handloom Sector 41 5. Market Idenficaon of Handloom Products for Indian Manufacturers 49 6. Challenges and Strategies 61 Project Team: Mr. Ashish Kumar, Deputy General Manager Ms. Simaran Kaur, Manager 3 Indian Handloom Industry: Potenal and Prospects LIST OF TABLES Table No. Title Page No. 2.1 Process-wise Cloth Producon 21 2.2 Handloom Cloth Producon Segregaon 22 2.3 Select Major Handloom Clusters 26 3.1 Major Export Desnaons of Indian Handloom Products 30 3.2 Major Handloom Products Exported by India (2013-14) 31 3.3 Major Handloom Products Exported by India (2017-18) 31 3.4 Major Sources for India's Import of Handloom Products 33 3.5 Major Export Desnaons of Other made-up texle arcles: sets; worn clothing and worn texle arcles; rags 34 3.6 Major Export Desnaons of Carpets and Other Texle Floor Coverings 35 3.7 Major Export Desnaons of Arcles of apparel and clothing accessories, not knied or crocheted 36 3.8 Major Export Desnaons of Woven Fabrics of Silk 37 3.9 Major Export Desnaons of Coon Handloom Products 38 3.10 Major Export Desnaons of Woven Handloom Fabric of Wool, fine or coarse animal hair, horsehair yarn 39 3.11 Major Export Desnaons of Special Woven Fabrics, tued texle fabrics; lace; tapestries; trimmings; embroidery 40 4.1 Components of Comprehensive Handloom Development Scheme 42 4.2 Provision of Assistance under Markeng Incenve to Handloom Sector 43 4.3 Provision of Benefits under Mahatma Gandhi Bunkar Bima Yojna 47 4.4 Funds Released under Yarn Supply Scheme 47 5.1 India's Share in Global Exports of Silk Handloom Products 50 5.2 India's Share in Global Exports of Woven Handloom Fabric of Wool, fine or coarse animal hair, horsehair yarn 50 5.3 India's Share in Global Exports of Coon Handloom Products 52 5.4 India's Share in Global Exports of Carpets and Other Texle Floor Coverings 54 5.5 India's Share in Global Exports of Special Woven Fabrics, tued texle fabrics; lace; tapestries; trimmings; embroidery 55 5.6 India's Share in Global Exports of Arcles of apparel and clothing accessories, not knied or crocheted 56 5.7 India's Share in Global Exports of Other made-up texle arcles: sets; worn clothing and worn texle arcles; rags 57 6.1 Yield of Coon Producon in the Top 10 Producers of Coon in the World (2016-17) 61 6.2 Number and Growth of Power Looms in India 63 6.3 India's Import of Silk and Silk Products 69 6.4 Physical Progress of Powerloom Inspecons (as on December 2017) 71 5 Indian Handloom Industry: Potenal and Prospects LIST OF EXHIBITS Exhibit No. Title Page No. 2.1 Sector- wise Producon of Cloth (2016-17) 21 2.2 Cloth Producon by Handloom and Growth Rate (%) 22 2.3 Product- based Classificaon of Handloom Sector 23 2.4 Proporon of Number of Handlooms in North Eastern Region in India (2009-10) 24 2.5 Top 5 States in Number of Handlooms (2009-10) 24 2.6 Percentage of Handloom Workers in North Eastern India (2009-10) 25 2.7 Top 5 States in Number of Handloom Workers (2009-10) 25 2.8 Value Chain: Handloom Sector 25 3.1 India's Exports of Handloom Products 30 3.2 India's Imports of Handloom Products 32 3.3 India's Exports of Other made-up texle arcles: sets; worn clothing and worn texle arcles; rags 33 3.4 India's Exports of Carpets and Other Texle Floor Coverings 34 3.5 India's Exports of Arcles of apparel and clothing accessories, not knied or crocheted 35 3.6 India's Exports of Woven Fabrics of Silk 36 3.7 India's Exports of Coon Handloom Products 37 3.8 India's Exports of Woven Handloom Fabric of Wool, fine or coarse animal hair, horsehair yarn 38 3.9 India's Exports of Special Woven Fabrics, tued texle fabrics; lace; tapestries; trimmings; embroidery 39 6.1 Monthly Prices of Indian Coon Yarn (Cones) in Rs. /kg 62 LIST OF BOXES Box No. Title Page No. 1 EXIM Bank's Assistance to Handloom Sector 48 2 GoCoop: Online Portal for Handloom Products 72 3 Exim Bank's Support to Kumaon Earth Cra Swaya Sahakarita Limited 74 7 Indian Handloom Industry: Potenal and Prospects EXECUTIVE SUMMARY INTRODUCTION However, it cannot be denied that the economic liberalisaon, rapidly increasing industrialisaon, The handloom industry is one of the oldest and the globalisaon and advent of modern technologies has largest coage industry in India, represenng and brought with it various challenges for the preserving the vibrant Indian culture. Indian arsts development of the handloom industry. Thus, it are now disnguished worldwide for their hand becomes imperave to undertake measures for the spinning, weaving and prinng elegance. The development of the Indian handloom industry. This operaons of this industry are primarily household- study analyses the Indian handloom sector with based, wherein various members of the family put in parcular focus on internaonal trade and exports joint efforts for producon. These acvies are from the country and makes an aempt to draw out spread across thousands of towns and villages of the certain measures that can help realise the huge country, and involve transfer of skills from one export potenal that exists for handloom products in generaon to the next. The strength of the handloom the internaonal market. industry lies in the fact that it involves hardly any INDIAN HANDLOOM INDUSTRY: AN OVERVIEW usage of capital and power, is eco-friendly and suitable for innovaons and transformaon with Producon respect to market requirements. Cloth producon using handloom has been displaying an increasing trend over the years. The aggregate According to the Reservaon of Arcles for cloth producon by the handloom sector stood at Producon Act, 1985, the term handloom is defined 8.01 billion square metres during the year 2016-17 as “any loom other than power loom”. The concept of registering 4.8% year-on-year growth. Owing to the handloom industry includes the process of operaon global downturn, cloth producon by handloom had by hand, of a wooden structure which is called the declined in the years following 2008-09; however loom. The working and funconing in the handloom since 2011-12, hand woven cloth producon has sector is enrely different from that of the power been increasing connuously. The share of the loom sector. Handloom weaving involves three handloom produced cloth in the total cloth primary moons- shedding, picking and beang. The producon during the year 2016-17 was esmated at handloom products produced by each region varies, 17.4%. as each state in India specializes in a different variety Characteriscs of the Handloom Sector of handloom product determined by the culture of that region and the skill of the workers. A few The handloom industry is primarily a rural based examples of handloom products spread across economic acvity with a vast majority of handloom various states include Pashmina Shawls in Jammu and households residing in rural areas. As per the third Kashmir, Kanchipuram Sarees in Tamil Nadu, Kutch Handloom Census, there were a total of 23.77 lakh Shawls in Gujarat and Eri and Muga silks of Assam. looms in the country, of which approximately 87% were being operated in the rural areas. Further, out of The handloom industry is presently regarded as the a total of 43.31 lakh persons engaged in weaving and largest economic acvity in India aer agriculture, allied acvies, 84% were in rural areas. generang direct as well as indirect employment for more than 3 million weaver households. A vast majority of handlooms are located in the North Furthermore, the Government has introduced east region of India. In terms of proporon of various schemes for holisc development of the handlooms, 65.2% of the total handlooms in the sector. country were being operated in the north eastern 9 Indian Handloom Industry: Potenal and Prospects states. Assam was the leading state accounng for Imports nearly 46.8% of the aggregate number of handlooms in the country. Other major states with respect to The imports of handloom products doubled from US$ number of handlooms in the country were West 5.4 million in 2016-17 to US$ 10.8 million during Bengal (12.9%), Manipur (8.0%), Tamil Nadu (6.5%) 2017-18. However, over a larger me frame, imports recorded a negave CAGR of (-) 12.9%, as the value of and Tripura (5.8%). imports declined from US$ 18.8 million in 2013-14 to TRADE SCENARIO US$ 10.8 million in 2017-18. Bangladesh has, by far, Exports been the leading import source of handloom products by India. The share of Bangladesh in India's India was the second largest exporter of handloom handloom imports rose from 68.0% in 2013-14 to products in the world, with exports valued at US$ 88.3% in the year 2017-18.
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