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Traditional Linen Fabrics Weaving and Handloom Cluster of Bhagalpur, India

In-depth study into Traditional Bhagalpur Linen Fabric Weaving and Handlooms

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This guide explores traditional craft clusters from Bhagalpur, India, its organization, working, peculiar methods of weaving, handloom processes, and the industry constraints, in conjunction with textile and allied products.

Pestle Analysis of Textile Industry

The textile industry grew out of the industrial revolution in the 18th Century as mass production of clothing became a major industry. Until the economic liberalization of the Indian economy, the India Textile Industry was primarily an unorganized industry. The opening up of the Indian economy post-1990s led to a stunning growth of this industry. But now Industry has been influenced by many factors such as political factors, economical factors, social factors, technical factors, legal factors, and environmental factors. Here we will describe all those factors that affected to Textile Industry.

The Working Group on Textiles & Jute Industry for the 11th Five Year Plan (2007-2012) has studied the major problems being faced by the textile industry.

Political Factors

The management of business enterprises and their policies are considerably influenced by the existing political systems. And India is a democratic country, there are probably problem of stability in politics.

Political and Government Diversity

The reservation of production for very small companies that was imposed with an intention to help out small scale companies across the country, led substantial fragmentation that distorted the competitiveness of industry. However, most of the sectors now have been de-reserved, and major entrepreneurs and corporate are putting-in huge amount of money in establishing big facilities or in expansion of their existing plants.

Secondly, the foreign investment was kept out of textile and apparel production. Now, the Government has gradually eliminated these restrictions, by bringing down import duties on capital equipment, offering foreign investors to set up manufacturing facilities in India. In recent years, India has provided a global manufacturing platform to other multi-national companies that manufactures other than textile products; it can certainly provide a base for textiles industry.

And some motivating step taken by the government, other problems still sustains like various taxes and excise imbalances due to diversification into 35 states and Union Territories. However, an outline of VAT is being implemented in place of all other tax diversifications, which will clear these imbalances once it is imposed fully.

But now the Indian government has introducing measures such as the national technology up gradation fund and removing the differential taxation scheme which discriminated against large units.

The Government has announced the release of a subsidy of INR 2,687 Billion for the textile industry.

Removal of trade related tariffs and non-tariff barriers.3.The government has extended 10% capital subsidy and 5% interest subsidy on installation of machineries and for processing machinery.

A 41-member Working Group has also been announced to be set up with a National Fiber Policy, to ensure self- sufficiency in fiber consumption and export requirements in India.

Economical Factors

Economical factors such as per capita income, national income, resources mobilization, exploitation of natural resources, infrastructure development, capital formation, employment generation, and industrial development influence textile industry.

Textile industry provides one of the most fundamental necessities of the people with huge value-addition at every stage of processing.

Today textile sector accounts for nearly 14% of the total industrial output. Indian fabric is in demand with its ethnic, earthly colored and many textures. The textile sector accounts about 30% in the total export. This conveys that it holds potential if one is ready to innovate.

The textile industry is the largest industry in terms of employment economy, expected to generate 12 million new jobs by 2010. It generates massive potential for employment in the sectors from agricultural to industrial. Employment opportunities are created when cotton is cultivated.

Indian textile industry contributes about 14% to industrial production, 4% to the country’s gross domestic product (GDP) and 16.63% to export earnings.

Nearly 40% of the textiles produced in the country is exported and the textile sector is the biggest employment generator after agriculture

The sector is expected to generate 12 million new jobs4.Indian textiles and apparel exports, which is worth US$ 41.4 billion in 2014-15, a growth of 5.4 percent.

Social Factors

Managers and policy makers can not disregard social variables like education, knowledge, rural community norms and beliefs which are predominant in India, especially in the rural society while cultural differences are unthinkable for any international manager or even an urban Indian manager. Textile industry of India based on cotton and cotton as the agriculture product, which found in rural areas so the social responsibility of the textile industry. Social stratification plays a vital role in rural societies.

The market for textile is growing as a whole as India’s population grows at about 1-2% annually.

Along with that, Raymond’s market segment of upper middle class and the high class segment is also growing due to higher disposable incomes.

The textile industry is mainly a labor intensive industry as it provides livelihood to the huge population, mainly consists of unskilled workers, and thus plays a pivotal role in the development of any economy.

Technological Factors

Technology is considered to be one of the most important factors of textile industry. That is why the government, in its industrial policy resolutions, industrial licensing policies, MRTP and FERA regulation, and in liberalization policies, assigned great importance to sophisticated technology and technology transfer.

The Working Group on Textiles & Jute Industry for the 11th Five Year Plan (2007-2012) has studied the major problems being faced by the textile industry which include:

  1. Structural weaknesses in weaving and processing,
  2. Fragmented and technologically backward textile processing sector,
  3. Fragmented garment industry,
  4. Inadequate capacity of the domestic textile machinery manufacturing sector,
  5. Inadequate training facilities in textile

The Government has undertaken a series of progressive measures like introduction of Technology Mission on Cotton (TMC), Technology Upgradaiton (sp) fund Scheme (TUFS), Scheme for Integrated Textile Park (SITP), reduction in customs duty on import of state-of-the-art machinery, Debt Restructuring Scheme, setting up of Apparel Training and Design Centers (ATDCs), 100% Foreign Direct Investment in the textile sector under automatic route, setting up of National Institute of Fashion Technology (NIFT) etc, for upgrading and strengthening the textile sector in India.

At present, the textile industry is undergoing a substantial re-orientation towards other then

clothing segments of textile sector, which is commonly called as technical textiles. It is moving vertically with an average growing rate of nearly two times of textiles for clothing applications and now account for more than half of the total textile output. The processes in making technical textiles require costly machinery and skilled workers.

The textile industry is more labour intensive.

Legal Factors

Legal environment plays very vital role in textile industry. Laws relating to industrial licensing, factory administration, industrial disputes, monopoly control, and foreign exchange regulation are examples of legal business environment in India.

Textile industry has suffered by legal rules as unfavorable labor laws. Government has created strong labor laws. In India, labor laws are still found to be relatively unfavorable to the trades, with companies having not more than ideal model to follow a ‘hire and fire’ policy

And other factors are lack of Trade Membership, which restrict to tap other potential market. And also lacking to generate Economies of Scale is another legal factor to this industry. Government has charged higher Indirect taxes, power and Interest rates. The uneven supply base also leads barriers in attaining integration between the links in supply chain. This issue creates uncontrollable, unreliable and inconsistent performance. The liberalization being carried in the 1990’s also ushered in a new era for India’s textile industry. It led to the relaxation of many of the constraints previously imposed on the textile sector. Licensing was removed in the early 90`s by the Statement of Industrial Policy and the Textile Development and Regulation Order. In 1995, India signed the General Agreement of Tariffs and Trade bringing some of its policies at par with those at an international level.

At present, the single biggest factor influencing the textile industry appears to be the end of the textile quota regime of quantitative import restrictions under the multi-fiber arrangement (MFA) on 1st January, 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing. The removal of quotas, seen as an opportunity by many, including the government, is driving investment and liberalization in the textile space.

India can also grab opportunities in the export market. The industry has the potential of attaining $34bn export earnings by the year 2010. The regulatory polices is helping out to enhance infrastructures of apparel parks, Specialized textile parks, EPZs and EOUs.

Environmental Factors

environmental factors

Environment protection and preservation is responsibility of the textile industry. The Government of India is committed to the preservation of ecological balance.

Pollution free technology and recycling of industrial wastes and effluents has become a corporate concern now. Legislative measures have been adopted for this purpose, important legislations in this connection,

The water (preservation and control of pollution) Act, 1974 provides for the prevention and control of water pollution. The Air Act, 1981 aims at preventing, controlling, and reducing air pollution. The environment (protection) Act, 1986 ensures the protection and improvement in the quality of the environment.

Government Support and Schemes

The Indian handloom industry is critical for the growth of the economy owing to its high potential for export, foreign exchange earnings for India and its employment potential.

The sector also plays a critical role in women empowerment given that a very large proportion of weavers involved in this industry are women.

Given the importance attached to this sector, the Government has also played its role in supporting growth of the sector through a series of policy measures introduced in the recent past. The budget outlay for the sector in the Twelfth five-year plan was ₹ 4314.31 crores.

The Indian government has introduced various schemes and made interventions to preserve the rich heritage of the Indian handloom industry and promote its culture.

A brief analysis of the some of the major programmes introduced over the years by the government is provided below. It may be noted that the various initiatives taken by the government are directed towards areas such as cluster development, availability of credit, promotion of exports, supporting environmental compliances, provisions of social welfare schemes for weavers, infrastructure development, availability of raw materials, brand building, marketing and R&D.

National Handloom Development Programme (NHDP)

The objective of the programme is holistic and integrated development of handloom industry and welfare of weavers. The programme supports weavers, both within and outside the cooperative fold including Self Help Groups, NGOs etc. towards credit design inputs, technology upgradation, marketing support and skill upgradation.

The major components of the scheme are as follows:

  • Concessional Credit for the handloom sector through the Weaver Mudra Scheme:  The scheme was launched in September 2015 with the aim to provide loans at concessional interest rate of 6% for a period of three years. Also, money margin assistance to a maximum of ₹ 10000 per weaver and credit guarantee for a period of three years is provided by the scheme. The scheme has benefitted over 52059 weavers and a loan of ₹ 271.62 crores was sanctioned under the name of Weaver Mudra Scheme.
  • Block level cluster projects: A cluster in the block is eligible to avail financial assistance up to ₹ 2.00 crores for Common Facility Centre (CFC) including Common Service Centre (CSC), engagement of textile designer cum marketing initiative, construction of common and individual work shed, appointment of Cluster Development Executive (CDE), technological and skill upgradation. Also, financial assistance up to ₹ 50.00 lakh is available for setting up of dye house at district level. 43 block clusters have been sanctioned in the following states during the year 2017-18

E-Dhaga App

In order to enhance the effectiveness of the yarn supply, the National Handloom Development Corporation (NHDC) launched Enterprise Resource Planning (ERP) system and e-Dhaga mobile app in the year 2016. The mobile app enables transparency by allowing the weavers to place their orders directly on the app and accordingly make online payments for the same. The status of the shipments is also available through the app and the app is available in ten languages. The app is helpful to the weavers as they can now access information anytime and anywhere. They can also view yarn stock in NHDC’s depots, warehouses and CFCs, product catalogue and the supplier list. Thus, the app is important to address individual concerns of weavers such as availability of raw material, delays in supplies and ensuring stocks in depots.

  • It is notable to mention the role of women leaders in the Indian economy who have taken steps to support and stimulate the growth of the handloom Some of the instances of such measures are discussed below:
  • Union Textile Minister, Smriti Irani initiated the campaign #iwearhandloom on Twitter and Facebook to increase awareness of the poor conditions of weavers and encourage consumers to wear
  • Actress Sharmila Tagore launched the centenary celebrations of Bengal Home Industries –the country’s first NGO to promote the handloom industry in
  • Women’s Weave by Sally Holkar provides employment to thousands of women in the handloom She also plans to expand her industry by investing in her weavers who will be trained to use computers and speak English to interact better with Indian urban or international customers.
  • Well know fashion designer Anita Dongre has taken up steps to promote the Indian handloom and handicraft industry by hosting fashion shows to showcase India’s glamourous
  • Designer and politician Shaina NC associated with Lakme Fashion Week to promote the Banarasi handlooms.

Karyashil Punji

In 2020 Working capital of Rs 10,000 was provided to the weavers by the Government of India.

Solar power scheme

In 2012-13 an amount of Rs 4050 was provided to weavers by the Government of India. The weavers has to contribute Rs 500 extra to buy the solar panels

Handloom Development Scheme

Under these scheme workers were provide with a amount at intervals of 15k to buy handlooms for weaving.

Cycle Yojna

In 2012 weavers were provided with Rs 15k to buy cycles for them.


Assistance of Rs 45,000 will be provide to individual workers by WSC(weavers service centre) for purchasing dobby in 2021. The weavers has to contribute Rs 500 to buy dobby.

Going forward, it is important to increase awareness and capacity building which will lead to greater participation, greater decision making and control and transformation of women associated with the handloom sector. Some of the approaches to meet this objective could be:

  • To encourage self-help groups to establish weaver cooperative societies exclusively for women Having specific development programmes and allocations in the national budget
  • Providing literacy programmes and conducting skill development programs to improve standard of living of women
  • Implementing welfare schemes related to healthcare and insurance with particular focus on women.
  • Celebrity endorsements of events and shows showcasing Indian handloom industry on program
  • It is important that the contribution of women weavers and women working in ancillary activities is fully rec- ognised in official Women should be accorded same status as men during the census /other enumer- ations and counted as primary workers.
  • This would not only boost women’s participation in work force but also ensure that women handloom workers are able to access institutional credit and other government schemes in their own name which will further im- prove their creditworthiness for future

Major Support Institution in the Sector

Working weavers are manly get support by :

  • Craft mela– There are several events like art and craft mela which is helping out artisans and weavers by doing exhibition of their handmade products.
  • Artisan workshop – Along with this, there are several institutions where artisans were taught and can display it.
  • Besides this, there are several NGOs that are helping artisans to grow.

Challenges Faced by the Sector

Even though ladies plays an integral part of the Indian loom business, there’s not enough recognition of their contribution to the arena.

Most women weavers are illiterate or semi illiterate because of poor economic conditions that casts doubt on their Social Security and future aspirations. Whereas ladies within the NER have a definite advantage in enjoying cultural freedom of handling work on their own, ladies in most different elements of Asian nation are strained inside male central atmosphere that doesn’t recognise ladies to perform as equals. Non commissioned as housewives ,they assist menfolk and are so thought to be secondary employees as against men.

It’s necessary that the contribution of ladies weavers and ladies operating in supportive activities is totally recognised in official statistics.

Ladies ought to be accorded same standing as men throughout the census /other enumerations and counted as primary employees. This will not solely boost ladies’s participation in men however additionally make sure that women loom employees are able to access institutional credit and different government schemes in their own name which can any improve their trustworthiness for future growth.

Another issues and challenges that are stifling growth of the loom sector and impacting its property are – shortage of inputs and downside of capital, lack of credit, promoting problems like lack of awareness on client preferences, inability to differentiate between loom and loom product, lack of promotional campaigns, inconsistencies in quality of product and inefficiencies in provide chain, larger competition from power looms and mills, technological mental retardation, scarcity in new styles, reduction in variety of weavers, poor policy dissemination and information crunch etc.

Suggestions for Promoting Sustainable Growth

The importance and connectedness of the loom sector to the economy is seen from the vision set out by the govt. For the world that is to develop a powerful, competitive and spirited sector so as to produce property employment to the weavers and supportive staff, significantly happiness to the underprivileged sections of the population and to make sure quicker, additional comprehensive growth of the world.

So as to realize property growth, it’s necessary that efforts square measure created to deal with the challenges the world is presently facing. This could need moving off from the business- approach. A transparent strategy which might be enforced and would change success is required. Whereas many initiatives square measure afoot, there’s loads which will be done to push handlooms within the country. Backed by literature review, the subsequent suggestions for promoting loom business in India square measure created for thought.

Regular Supply of Raw Materials

Good quality yarn is that the basic staple for weavers that are unfold across the country. NHDC is to blame for providing / supply yarn to the weavers. However presently the yarn required by weavers is provided by NHDC. NHDC ought to proportion its operations and came upon a network of regional yarn depots with support from non-public sector mills. It’s vital that almost all weavers ought to get delivery of yarn as per demand in a very timely manner.

Introduce New Design Elements

While protective the normal styles, there’s a necessity to at the same time evolve with the time. Weavers ought to be engaged in style workshops and target-hunting to experiment to enhance marketability of latest product. There’s a necessity for innovation and experimentation in styles by the artisans in order that they will differentiate and face up to competition from the mechanized processes. Abhiyan (UBA) theme beneath that village clusters in eight districts across totally different Indian states are adopted by the India Institute of Technology (Delhi). The target is to handle the organic process challenges faced by the agricultural individuals and supply solutions that might facilitate in their property growth. Similar initiatives will be smitten the support of personal fashion institutes which will add clusters and support the weaving community.

Improve Credit Delivery

Easy access to credit and increasing awareness concerning the obtainable schemes has to be unfold among the artisans in order that they will enjoy the initiatives. Weavers should get the credit on soft terms as they’re imagined to with the new initiatives like gap from bank accounts, direct delivery of subsidies and digital governance. they ought to be brought beneath the horizon of January Dhan– Aadhaar-Mobile (JAM) Trinity as this might effectively cut leakages by sanctioning higher delivery of Direct profit Transfer (DBT), eliminate faux beneficiaries and cause money inclusion.

Focus on quality standards

Extensive education campaigns ar required to focus on the importance of high standards within the raw materials utilized in loom product. consumers in international markets ar notably sensitive to sensible quality product. top quality product can therefore fetch higher costs for the weavers. Weavers additionally got to be target-hunting on use of quality dyes. Workshops on colouring processes and color abstinence processes ought to be control frequently.

Leverage e-commerce platforms

E-commerce platforms should be wont to increase the reach to newer customers and markets. Already platforms like Amazon and Flipkart ar operating with many artisans to require their product international. This trend should be powerfully inspired, and e-commerce firms ought to give support in areas like finance, selling and provision to the artisans.

Connect with private sector through CSR

Leverage the experience of personal firms by connecting ladies weavers with company CSR funds through CSR programmes in line with global organization SDG goals to realize gender equality and empower all ladies and ladies and eradicate economic condition.

Scaling up marketplaces for handloom products

As handlooms ar a serious supply of attracting for tourists, marketplaces like urban center Haat ought to be replicated across the country. Such market places ought to be came upon in cities like metropolis, Jaipur, Jodhpur, Shimla, Kochi, Mysore, and Ahmedabad as these cities see massive influx of tourists.

Have a National Campaign on Handlooms

There is a necessity to possess a National Campaign for Handlooms going on the far side cloth. By victimisation electronic and medium, campaigns ought to be run to focus on the novelty issue of ancient Indian loom product

Use of multi-channel marketing

Tie-ups will be promoted with massive malls, retail chains, sustenance joints to earmark some house of show and sale of loom product. As these places see sensible footfalls, it’ll facilitate in promoting handlooms sales.

Strengthen Common Infrastructure Facilities

There is a need for regular quality assessment of yarns, dyeing, finishing and packaging to create permanent space for handlooms in domestic and international markets. Also, Common Facility Centre /dyeing units promoted under the Cluster Development Programmes of Integrated Handlooms Development Scheme (IHDS) should be scaled up in partnership with the State governments to cover all the major weaving clusters in the country.

Promote Handloom Mark

The Handloom Mark, which is an indicator of high-quality products should be widely promoted as it can help in realising premium prices for handloom products just like higher prices are charged for organic food products.

Have more State Level Initiatives

It is notable that Kerala supplies its own handloom products woven by traditional artisans in energy efficient looms. The state provides free handloom uniforms to students in government schools. This brings a pool

of weavers under the government scheme which envisages the strengthening of the handloom sector in the state. The state also plans to revive its Kerala Handloom Brand alongside its handloom uniform project to bring more value addition to its products and good marketing. Similar initiatives can be taken in other states to boost the handloom industry.

Develop Comprehensive Database for the Sector

The latest available comprehensive data set on the sector available is the Third Handloom Census conduct- ed in 2009-10. To be able to regularly review the growth trends in the sector and make appropriate policies, there is a need to have more recent and updated data on the socioeconomic indicators of the sector. In 2016, Government had announced that Fourth Handloom Census will be conducted. This should be expedited.

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