FACE LIFT TO HANDLOOM SECTOR - An Imperative Beginning
About The Sector
The handloom sector is one of the largest employers in India, providing employment to about 65 lakh persons. The sector represents the continuity of the age-old Indian heritage of hand weaving and reflects the socio-cultural tradition of the weaving communities. The Government of India has been following a policy of promoting and encouraging the handloom sector through a number of policies and programmes. Most of the schematic interventions of the Government of India in the Ninth and Tenth Plan period have been through the state agencies and cooperatives in the handloom sector. However in the face of growing competitiveness as well as opportunities emerging in the post liberalization environment, the logic of economic liberalization for handlooms will sooner or later, involve elimination of subsidies for handlooms. The issue has therefore, to be seen in the context of productivity, employment generation, protection and promotion of traditional skills and the need to provide a safety net to the poor in a Country where any economic programme must some how have target in this direction.
This sector is highly decentralised and dispersed and handloom weavers can be found in over 400 clusters in the country. In view of the high employment in the sector and cost disadvantages faced by handlooms compared to the Mill and Power loom sectors and due to the manual nature of production, the Govt. of India had been following a policy of protection of the Handloom sector since long. This policy consists of subsidy for production of yarn supply, marketing rebate on sales, and exemption from excise duty on hank yarn which has recently been discontinued.
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