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ANSWERED ON:  12.07.2019
Employment Opportunities in Handloom Industry
Chandan Singh
Will the Minister of

TEXTILES be pleased to state:-

(a) whether maximum employment opportunities can be generated by developing the handloom industry as a micro and rural industry in the country;

(b) if so, the procedure laid down/the roadmap proposed in this regard by the Government and the details of implementation of any schemes/policies specifically earmarked for the development of handloom industries in the previous years;

(c) the details of increase in turnover in such handloom industries during the last three years; and

(d) the number of employment opportunities generated during last three years along with the percentage growth thereof?


(a) to (d): A statement is laid on the Table of the House.


(a) & (b): Handloom Sector is unorganized, labour intensive and decentralized, with characteristics of Cottage Industry. It is often operated out of home rather than a purpose-built facility, with very little investment in Plant and Machinery. As per 3rd Handloom Census (2009-10), 43.30 lakh persons are engaged in weaving and allied activities across the country. Maximum number of handloom units are not registered as Micro, Small and Medium Enterprises (MSME), but Government of India supports the sector by providing backward linkages i.e. supply of subsidized yarn, subsidized looms and accessories, design support, product development, skill up-gradation trainings and forward linkages i.e. Marketing platform to handloom organization and weavers to sell their products to the consumers through various national and international marketing events.

In order to promote the handloom sector and sustain employment, the Government of India is implementing following schemes across the country:-

1) National Handloom Development Programme (NHDP)
2) Comprehensive Handloom Cluster Development Scheme (CHCDS)
3) Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS)
4) Yarn Supply Scheme (YSS)


(i) BLOCK LEVEL CLUSTER: Introduced in 2015-16 as one of the components of National Handloom Development Programme (NHDP). Financial assistance upto Rs. 2.00 crore per BLC for various interventions such as skill upgradation, Hathkargha Samvardhan Sahayata, product development, construction of workshed, project management cost, design development, setting up of common facility centre (CFC) etc. is provided. Besides, financial assistance upto Rs. 50.00 lakh is also available for setting up of one dye house at district level. The proposals are recommended by the State Government.

(ii) HANDLOOM MARKETING ASSISTANCE is one of the components of National Handloom Development Programme. In order to provide marketing platform to the handloom agencies/weavers to sell their products directly to the consumers, financial assistance is provided to the States/eligible handloom agencies for organising marketing events in domestic as well as overseas markets.

(iii) WEAVERS’ MUDRA SCHEME: Under the Weavers’ Mudra Scheme, credit at concessional interest rate of 6% is provided to the handloom weavers. Margin money assistance to a maximum of Rs. 10,000 per weaver and credit guarantee for a period of 3 years is also provided. MUDRA portal has been developed in association with Punjab National Bank to cut down delay in disbursement of funds for margin money and interest subvention

The Comprehensive Handloom Cluster Development Scheme (CHCDS) is implemented for development of Mega Handloom Clusters covering atleast 15000 to 25,000 handlooms and financial assistance as GoI share from Rs. 40.00 to Rs.70.00 crore is in a period of 5 years. 8 mega handloom clusters taken up as announced in the Budgets i.e. Varanasi, Sivasagar (2008-09), Virudhunagar, Murshidabad (2009-10), Prakasam& Guntur districts and Godda& neighboring districts (2012-13), Bhagalpur &Trichy (2014-15).
Under the scheme, components like conducting Diagnostic Study, engaging Designer, Product Development, Corpus for raw material, Construction of Worksheds (for BPL/SC/ST/Women weavers), Skill up-gradation etc. are fully funded by Government of India, while the components like Technology up-gradation, lighting units funded 90% andother common infrastructural projects like Design Studio, Marketing Complex, Value Addition Centres, Publicity etc., are funded by the GOI to the extent of 80%.


Weavers Comprehensive Welfare Scheme (HWCWS) is providing life, accidental and disability insurance coverage under the components Pradhan Mantri Jivan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana(PMSBY) and Converged Mahatma Gandhi Bunkar Bima Yojana(MGBBY).
Yarn Supply Scheme is being implemented throughout the country to make available all types of yarn at Mill Gate Price. The scheme is being implemented through National Handloom Development Corporation. Under the Scheme freight is reimbursed and depot operating charges @2% is given to depot operating agencies. A component of 10% price subsidy also exists on hank yarn, which is applicable on cotton, domestic silk, wool and linen yarn with quantity caps.

Hathkargha Samvardhan Sahayata (HSS) was introduced on 1st December 2016 with an objective to provide looms/accessories to the weavers to enhance their earnings through improved productivity and quality of the handloom products. Under the scheme, 90% of the cost of loom/accessory is borne by the Government of India while remaining 10% is borne by the beneficiary. The Government of India’s share is released directly in the Bank account of the beneficiary through designated agency.
Ministry of Textiles has signed Memorandums of Understanding with Indira Gandhi National Open University (IGNOU) and National Institute of Open Schooling (NIOS) to secure educational facilities for the weavers and their families. NIOS offers Secondary and Senior Secondary level education with specialized subjects on design, marketing, business development, etc. through distance learning mode for handloom weavers, whereas IGNOU offers continuing education programs through accessible and flexible learning opportunities relevant to the aspirations of handloom weavers and their children for career progression.
Ministry of Textiles is providing reimbursement of 75% of the fee towards admission to NIOS/IGNOU courses in case of SC, ST, BPL, and Women learners belonging to handloom weavers’ families.
G. “INDIA HANDLOOM” BRAND- During the celebration of 7th August 2015 as National Handloom Day, ‘India Handloom’ Brand was launched by Hon’ble Prime Minister for branding of high quality handloom products. It promotes production of niche handloom products with high quality, authentic traditional designs with zero defect and zero effect on environment. Since its launch, 1232 registrations have been issued under 122 product categories and sale of Rs. 689.72 crore as reported on 31-03-2019.

Initiatives with various leading brands has been undertaken to bring out a separate range of handloom garments in their brand.

H. E-COMMERCE- In order to promote e-marketing of handloom products, a policy frame work was designed and under which any willing e-commerce platform with good track record can participate in online marketing of handloom products. Accordingly, 23 e-commerce entities have been engaged for on-line marketing of handloom products. A total sales of Rs.34.72 crore has been reported through the online portal as on 31-03-2019.

I. URBAN HAATS are set up in the big towns/metropolitan cities to provide adequate direct marketing facilities to the craft persons/weavers and eliminate middle agencies. 38 such Urban Haats have been sanctioned across the country so far.

J. SANT KABIR AWARD is conferred to outstanding handloom weavers who are carrying on with the tradition and have made valuable contribution to the development of the sector. Since 2012 to 2016, 24 Sant Kabir Awards have been conferred to the handloom weavers.

K. NATIONAL AWARD is conferred to handloom weavers in recognition of their outstanding craftsmanship contribution and development of handloom weaving. This recognition encourage them to continue with the work in a more enthusiastic and productive manner. Since 2012 to 2016, National Awards have been conferred to 102 handloom weavers across the country.
From the year 2016, two Sant Kabir Awards, four National Awards and four National Merit Certificates awards have also been instituted exclusively to the women handloom weavers in addition to the existing Sant Kabir Awards, National Awards and National Merit Certificate in the field of weaving. This exclusive award to the women handloom weavers is named as ‘Kamaladevi Chattopadhyay - Awards’. 7 such awards were conferred to women handloom weavers during National Handloom Day celebrated at Jaipur on 7th August 2018.
(c): Handloom is primarily a household activity undertaken by the weavers as individuals enterprise, under Master Weavers and as members of the Primary/Apex Cooperative societies and Handloom organizations. The main fibres used by weavers in the sector are cotton, silk, wool, linen, jute and acrylic. A lot of Handloom items are produced by the sector for the in-house consumption of weavers and their families. Due the unorganized and traditional nature of the sector, the data pertaining to Handloom production is dispersed and largely unavailable for centralized quantification. However, evaluation of schemes by independent agencies has revealed that productivity has increased.

(d): Employment generation in the sector is through facilitation under various Government Schemes like Hathkargha Samvardhan Sahayata (HSS), where weavers are provided looms & accessories and MUDRA loans at concessional rate. Also, Handloom workers are provided training for up-gradation of their skills. During the last three years, 51787 handloom workers have been provided training to upgrade their skill, 28397 Looms /Accessories provided under HSS and 103870 number of loans have been sanctioned to handloom weavers under the MUDRA Scheme.

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