How the Handloom Sector, the Second Largest Employer in India, Can Be Revived

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From enhancing the awareness of weavers of the sales process to setting up handloom institutes, various upgrades in the handloom sector will help revive the centuries-old industry. In this episode, we will look at the various steps that can be taken to rejuvenate the sector.

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While it is true that the handloom sector plays a vital role in the Indian economy, the industry needs to be revived for it to continue.

The handloom industry ranks second in providing employment after the agricultural sector.

An article published on Business Line mentions the following: 

“According to handloom census 2019-20, the handloom sector creates around 35 lakh of direct employment. If other industry stakeholders are considered — other textile manufacturers, fashion designers, etc. — this number will be much higher as because it includes other textile , making this the second largest source of employment for rural population after agriculture.”

Problems in the handloom sector

Ineffective policies and the disintegrated nature of the sector have resulted in several problems. One of the major problems of the industry is wages. Almost 67 percent of the weavers make less than ₹5,000 a month. The problem with low income has resulted in skilled weavers leaving the sector to join other industries with better pay. Furthermore, the current generation of weavers is disinterested in handing over the skills to the next generation. 

In addition to the individual problems of the weavers, several process-related complications negatively affect the supply chain. One of the reasons for problems with supply change is the fact that there is low banking penetration in the sector.

While it is true that several government policies provide benefits and incentives to the weavers, more needs to be done to revive the sector.

Suggestions

The handloom sector is one of the largest industries in the country spread across geographical locations. Any policy that is created to address the problems in the industry must follow the following criteria:

  • The weavers must be made aware of the business process, sales and finance.
  • A central network of weavers must be created through which they can get vital information.
  • Weaver should be aware of consumers’ demands.

We will have to leave it at that today due to time constraints. We will focus more on the topic in our next episode.

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#Handloom #HandloomSector #RuralIndia #Wages #LowIncom #Weavers #GovernmentPolocies #IndianEconomy #SupplyChain #BusinessProcess #Sales #Finance #Economy #Agriculture #Employer

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