Handloom sector needs ministry convergence, wider scheme awareness: EAC-PM

EAC-PM chairman S Mahendra Dev said better coordination across ministries and wider awareness of government schemes are key to supporting the handloom sector

Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM) S Mahendra Dev on Monday noted several problems plaguing the handloom and handicrafts sector, such as raw material supply, marketing constraints and low wages, and called for convergence of departments across the government.

 

“There are several schemes running across several ministries including the Ministry of Textiles, Ministry of Skill Development, as well as the Ministry of Culture. There may need to be a convergence of these departments and awareness on schemes needs to be enhanced,” Dev said at the launch of a survey by the Institute for Human Development (IHD) and the Crafts Council of India (CCI).

 

The sector requires removal of middlemen, better enhancement of design technology, increased use of institutional credit and the promotion of cluster development, he said.

 

A survey by the IHD and the CCI estimated that India’s handloom and handicraft sector supported nearly 11.3 million workers and 6.5 million establishments nationwide, highlighting its role in manufacturing employment.

 

Across five surveyed states, the sector employed an estimated 6.1 million people through 3.4 million units and contributed around ₹51,445 crore annually in gross value added (GVA). The report also found widespread informality, with most units operating on a small, home-based scale and reporting declining production over the past decade.

 

The findings were based on a primary survey across Assam, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal, selected for geographical spread and concentration of handloom and handicraft activity. Researchers surveyed 4,659 manufacturing units across rural and urban areas, covering three districts in each state. Units engaged solely in trading were excluded.

 

Union textile minister Giriraj Singh acknowledged the concerns raised in the report and said the gradual rise in income of handloom and handicraft workers is important.

 

He noted that it is not just the government but also the society’s responsibility to help the handicrafts industry.

 

Singh pointed out that there were 29 weaving service centres across India and currently the textile ministry is focusing on upskilling workers in the Guwahati centre. Weavers' Service Centres (WSCs) are government-run technical institutes across India, designed to support the handloom and textile sectors. They provide skill development, technological upgrades, design assistance, and market linkages.

 

The ministry is running an initiative through its survey division and its research coincides with the IHD-CCI survey, he said.

 

“In the first phase, we have selected six weaving service centres across five states,” said Singh. The government is helping workers in these centres with raw material procurement, designing as well as market access to sell their products, he added.

 

“In the next six months, we will extend the implementation of this study or initiative across the whole country,” Singh said.