Empowering India’s Handloom Sector: Key Government Initiatives

Introduction

• Empowering India’s Handloom Sector: About the NHDP and RMS Schemes of government In the following is a report on the government efforts under the NHDP and RMS Schemes.
• The handloom themselves occupies an important position in the cultural and economical map of India where it denotes the richness of textile sector of India.
• In the later years many measures have been initiated by the Government of India to protect and develop this sector even helping people working in handlooms and to promote the use of handloom products in India and abroad.
• In this regard, there are two main initiatives of the Ministry of Textiles namely the National Handloom Development Programme (NHDP) and the Raw Material Supply (RMS) Scheme.

National Handloom Development Programme (NHDP): A Comprehensive Support System

• National Handloom Development Programme (NHDP) is a central sector scheme specifically formulated to be all round to reach out to the handloom cluster.
• As it will be seen in this chapter, under this programme, handloom organizations and workers are supported financially with a view to increasing their output and the standard of their living.
• The NHDP encompasses a variety of initiatives, including

Upgradation of Looms & Accessories:

• Scholarship support is extended to the purchase of better looms and accessories so as to apply new methods that increase productivity.
• This step is important so as to maintain the input of traditional weaving procedures even when expressing technological developments.

Solar Lighting Units:

• Being aware of the fact that most of the weavers live in the areas with a scarcity of electricity; the NHDP offers them the solar lighting units.
• These unit entitle weavers to work more hours per day and increase their efficiency and uplift their income in general.

Construction of Worksheds:

• An element of the scheme is funding work sheds in which weavers can practice their craft, in safe and appropriate premises.
• The main purpose of this scheme is to uplift the standard of living of handloom workers, and also to boost the production.

Product & Design Development:

• This is in terms of the provision of financial assistance to product and design development thus keeping handloom products affordable both for the domestic market and for export.
• This entails support in form of technical cooperation and the building of structures that support innovation in the sector.

Marketing Support:

• The NHDP also aims at marketing of handloom products.
• The government also aids in the marketing of these products locally and internationally to ensure that weavers can get better customers to work for besides getting better results for their efforts.

Weavers’ MUDRA Loan/Concessional Credit Scheme: Financial Empowerment for Weavers

• Another important element of the NHDP is the Weavers’ MUDRA Loan/Concessional Credit Scheme.
• This initiative involves the provision of financial support for individual weavers and handloom organisations whereby one is provided with financial capital for the funding of their business.
• Key features of this scheme include:
  • Margin Money Assistance:
    • Margin money assistance is given to weavers and handloom organizations so that they can get loans and hence release their burden.
  • Interest Subvention:
    • interest rate subsidies by the government are extended up to a period of three years to help weavers in the management of their loan repayment thus enabling weavers to channel their resources towards the enhancement of their weaving skills.
  • Credit Guarantee Fees:
    • It also includes the credit guarantee fees for loans, which also helps insulate weavers and handloom organisations from certain levels of financial risk.

Welfare Provisions for Handloom Workers: Ensuring Social Security

• Besides the financial support, the NHDP has provisions for enhancing the social security for handloom workers.
• Through such welfare measures, the workers or rather the economically active population and their dependents are able to have a better standard of living.
• Some of these provisions include
  • Life & Accidental Insurance Cover: Life and accidental insurance covers are offered to the handloom workers and this means that the scheme ensures that the handloom workers have a cushion in case of such occurrences.
  • Scholarships for Higher Education: Educational scholarships are granted to the wards of handloom workers to pursue higher education and to have better future scope.
  • Support for Awardee Weavers: There are also funds for weavers who are over sixty years of age and are in a state of need so that awardees will not be overlooked for the appropriate monetary assistance they deserve.

Raw Material Supply Scheme (RMS): Ensuring Access to Quality Raw Materials

• The Raw Material Supply Scheme (RMS) is another completely started and implemented by the Ministry of Textiles.
• This scheme protect the interest of handloom weavers by providing quality raw materials at comparatively low prices and thereby help the handloom products to get competitively priced in the Markets.
• Key components of the RMS include
  • Transport Subsidy: The RMS pays transport costs for the delivery of yarn to the doorstep of beneficiaries so that most weavers are availed raw material despite their locations.
  • Price Subsidy on Yarn: The scheme provides a 15% price subsidy on the Cotton Hank Yarn, Domestic Silk, Woollen and Linen yarn as well as natural fiber blended yarn. This subsidy plays a key role in cutting the over head cost and the weavers are able to offer products in the market at reasonable prices.

Promoting Handloom Exports: Global Recognition for Indian Handlooms

• The Handloom Export Promotion Council (HEPC) has a primary duty to market the products made from handloom in the global markets.
• Trough the RMS of the HEPC it sponsors and participates in the international marketing fairs and events wherein the best Indian handloom products are displayed to the world.
• These have immensely helped in increasing the global target and awareness of the Indian handlooms.

Celebrating National Handloom Day: Honoring Tradition and Innovation

• Handloom Day is marked every year on the 7th of August to commemorate the far-reaching achievement in the promotion of the handloom sector, that was undertaken by the government.
• In 2015 on this day, the government introduced the ‘India Handloom’ brand to identify handloom products that have met the laid down standards.
• The brand gives impetus to create more specialised handloom products that have no defects and hardly any impact on the surroundings.
• Since its inception the ‘India Handloom’ Brand has been offering 1,998 registrations in 184 product categories in regard with the revival of the sector.

Government’s Response to COVID-19: Supporting Handloom Workers Amidst the Pandemic

• Due to the outbreak of COVID-19, the handloom industry was exposed to a lot of barriers.
• In response, the Government of India introduced several measures to support weavers and ensure the sustainability of the sector during these difficult times:
  • Aatma Nirbhar Bharat Abhiyaan: Under the Aatma Nirbhar Bharat Abhiyaan a special economic package was declared and for which relief and credit support was provided to the weavers and handloom sector which was affected due to pandemic.
  • Formation of Handloom Producer Companies: In order to increase production and promotionalti 151 numbers of Handloom Producer Companies (PCs) are established all over India. These companies offer weavers the opportunity to connect, create and receive better earning.
  • Onboarding on Government e-Marketplace (GeM): Handloom weavers were further extended the facility to register themselves on the Government e-Marketplace platform to sell their products to various government departments and other organisations. This has created other ways through which the weavers can access the potential consumers and go for the big busts.
  • Mandatory Procurement Rule Amendment: GO (2020) is an amendment to Rule 153 of GFR 2017 that requires that at least 20% of textiles purchased by department of the central government should be handloom originating items. Being a rule of procurement it guarantees a constant market for handloom products that can in turn foster the sector and the involved weavers.

Virtual Fairs and Marketing Events: Expanding Market Access for Weavers

• For the promotion of handloom products weavers were further supported by the government through virtual fairs and selling marketing events where handloom producers sampled their products to B2B buyers and exporters.
• In the years 2020-21 & 2021-22, a total of Twenty Virtual fairs for overseas marketing were conducted and Two hundred eleven domestic marketing events.
• These have gone a long way in assisting weavers to market and sell their products even during the period of the Covid-19 pandemic.

Conclusion

• There are numerous steps taken by the government of India through its ministry of textiles even today for the growth and development of the handloom industry.
• These measures include financial education, welfare measures, marketing help for brand building, export assistance; all one planned for the benefit of handloom workers and to promote the historic heritage of handlooms of India.
• These will help to steer the future development of the sector, as well as the position of the country in terms of its international ranking.

FAQS

Q1: What is the National Handloom Development Programme (NHDP)?
Ans: The NHDP is a central government scheme aimed at providing comprehensive support to the handloom sector. It offers financial assistance for upgrading looms, constructing worksheds, product and design development, marketing, and more to enhance the productivity and welfare of handloom workers.

Q2: What is the Weavers’ MUDRA Loan/Concessional Credit Scheme?
Ans: This scheme provides financial support to individual weavers and handloom organizations. It includes margin money assistance, interest subvention on loans for three years, and coverage of credit guarantee fees, helping weavers manage their finances and grow their businesses.

Q3: How does the Raw Material Supply Scheme (RMS) support handloom weavers?
Ans: The RMS Scheme offers subsidies for transporting yarn and provides a 15% price subsidy on various types of yarn. This reduces production costs for weavers and ensures they have access to quality raw materials.