Essay, 14 pages (3500 words)

The textile industry


The Textile industry occupies a exceeding topographic point in our state. One of the earliest industry, which is come into being in India, it accounts for 14 % of the entire Industrial production, contributes to about 30 % of the entire exports this consequence shows it is the 2nd largest employment generator after agribusiness. The Production of Handloom Fabrics and fabrics was about 5722 millions. sq. mtrs. in 2004-05, and it is look frontward to touch the about 6871 millions. sq. mtrs. in 2006-07. This industry is meaning an one-year growing of around 4 % .

Today, India ‘s fabric sector comprises four of import sections:

  • Modern fabric Millss
  • Independent Power looms
  • Handlooms
  • Garments


The Handloom sector take portion in a really important function in the state ‘s economic system. It is one of the largest economic activities which given that direct employment to over 65 lakhs individuals employed in weaving and allied activities. As a consequence of effectual Government engagement through fiscal support and achievement of assorted developmental and public assistance strategies, this handloom sector has been capable to last competition from the power loom and factory sectors. This handloom sector supply about approximately 19 % of the entire fabric produced in the state and besides this sector adds well to export net incomes. Handloom sector is alone in its flexibleness and versatility, allowing proving and encouraging inventions. The strength of Handloom lies in the introducing advanced designs, which can non be replicated by the Power loom sector. Thus, Handloom forms a portion of the heritage of India and exemplifies the profusion and diverseness of our state and the creativeness of the Weavers. The Office of the Development Commissioner for Handlooms sector has been implementing, since its puting up in the twelvemonth 1976, there are assorted strategies for the publicity and development of the handloom sector and supplying back uping to the handloom weavers in a assortment of ways.

Some of the major plans relate to:

  • Modernization and Up step of Technology
  • Input Support
  • Marketing Support
  • Promotion
  • Infrastructural Support
  • Social welfare Measures
  • Composite Growth Oriented Package
  • Development of Exportable Merchandises
  • Research & A ; Development

The assorted strategies put to deathing by the Office of Development Commissioner for Handlooms address the demands of weavers who constitute the disadvantaged societal strata and occupational groups, which are iies at the underside of the economic hierarchy. Concerted attempts are being made through the strategies and plans to heighten production, productiveness, and efficiency of the handloom sector and heighten the income and socio-economic position of the weavers by upgrading their accomplishments and supplying infrastructural support and indispensable inputs.


In order to show fiscal aid in an incorporate mode to the handloom weavers and beef up the design section of the cloth, Government of India had taken new enterprises in add-on to ongoing other strategies and plans by establishing new strategy, which viz. , Deen Dayal Hathkargha Protsahan Yojana and set up a National Centre for Textile Design ( NCTD ) late.


This strategy has come into existance with consequence from April 2001. It is a comprehensive strategy for handloom sectors to take attention of a broad scope of activities such as, merchandise development, infrastructural and institutional support, preparation of weavers, supply of equipment and selling support, etc. both at macro and micro degrees in an incorporate and co-ordinated mode for an overall development and benefit of handloom weavers. It besides, efforts to supply such installations, which would enable the weavers within co-operative crease every bit good as exterior, to take up production as per the market demand. The strategy efforts to help the demands of weavers for working capital, basic inputs, making consciousness and to back up quality cloth productions through appropriate design intercession for addition in productiveness along with proviso for promotion, selling and conveyance inducements, etc.

The Government of India has sanctioned a amount of Rs. 240. 69 hundred thousand and released a amount of Rs. 120. 28 hundred thousand as first installment Central portion for execution of 64 undertakings.


National Centre for Textile Design was set-up in January 2001 in Handloom Pavilion, Pragati Maidan, New Delhi to advance traditional & A ; modern-day designs to enable the fabric industry, peculiarly the Handloom sector, to be antiphonal to the quickly altering market demand.

Aims of the Scheme-

  • To associate weavers to the market and supply him with adequate tools to react to the quickly altering market state of affairs and demands.
  • To associate all people belonging to the fabric industry with the developments in other Fieldss.
  • To give weavers, workers and interior decorators greater exposure and entree to national and international markets thereby giving them a better support and avenues for more sustainable development.


The Handlooms ( Reservation of Articles for Production ) Act, 1985 purposes to protect 1000000s of handloom weavers from the invasion made on their support by the power loom operators and fabric factory sector, by reserving certain classs of fabric articles for sole production by handlooms.


Handloom sector is mostly dependent on the organized factory sector for supply of its chief natural stuff viz. yarns. This sector uses the majority of its narration in the signifier of Hankss. The Cardinal Government ensures regular supply of narration to the handloom sector by implementing the order ( Hank Yarn Packing Notification ) by doing it obligatory on the whirling Millss to pack a prescribed % of the narration produced by them in hank signifier.


The Scheme was introduced in 1992-93 with an aim of supplying all type of narration to the handloom weavers ‘ organisations at the monetary value available at Mill Gate.


National Handloom Development Corporation ( NHDC ) , a Government of India project, is the lone bureau authorized to implement the strategy. The strategy benefits the undermentioned organisations and their member weavers.

  • All Handloom Organizations of National/State/Regional degree.
  • Handloom Development Centres ;
  • Handloom producers/exporters/manufacturers registered with the Handloom Export Promotion Council ( HEPC ) or any other Export Promotion Council under the Ministry of Textiles, or with the State Directors of Industries ;
  • All approved export houses/trading houses/star trading houses for production of handloom points ;
  • Members of recognized/approved handloom associations ;
  • NGOs carry throughing CAPART norms ;
  • Any other bureau, with the blessing of the Development Commissioner for Handlooms ;
  • All types of narration required for production of handloom points are covered under the strategy

The Government of India is bearing the full outgo under the Scheme. The narration is being arranged by NHDC from the Millss as per the demand of the user bureaus and transported to the travel down of the bureau.


The working capital demands of the Weavers’Cooperative Societies ( WCS ) and State Handloom Development Corporations ( SHDC ) for production, procurance, selling, purchase and sale of narration, National Bank for Agriculture and Rural Development ( NABARD ) provides refinance installations through State Cooperative Banks ( SCB ) , District Central Cooperative Banks ( DCCB ) and Commercial Banks at concessional rates of involvement. The National Scheduled Castes and Scheduled Tribes Finance and Development Corporation, National Backward Classes Finance and Development Corporation, National Minorities Finance and Development Corporation besides provides working capital loans to the Weavers identified communities.


The cardinal authorities demands to acknowledge the value of the handloom sector in sustainable development. On its ain, the authorities would ne’er be able to supply employment to such a big work force. Traveling by the logic of liberalization itself, the authorities in bend ought to explicate, promote and promote policies that sustain this employment. Government has to guarantee a ‘level playing field ‘ for this sector towards healthy competition among the different sub-sectors of fabric industry.

The followers are aspects that require immediate attending:

  1. Raw Material supply
  2. Entree to raw stuff such as narration, dyes and dyestuffs has become a job. Weaving is a rural and semi-rural production activity and weavers have to travel far to acquire these natural stuffs. To exceed it off, narration monetary values are steadily increasing. As a consequence, there is a perennial deficit of narration for the weavers. Despite a few strategies, the hank yarn entree issue has non been resolved.

  3. Natural stuff monetary values
  4. Handloom chiefly uses natural fibers such as cotton, silk and jute. Monetary values of these fibers have been increasing during production and processing. Cotton production in India is expensive because of intensive and high use of dearly-won agricultural inputs such as pesticides and fertilizers. Second, while the fibre production most frequently happens in the locality of the weavers, their processing is done in distant countries, and as such the monetary values to the weaver are higher.

  5. Infrastructure and Investing
  6. Investing in handloom sector has therefore far been limited to input supply costs. There is no investing on sectorial growing. While there have been some piece-meal undertakings such as work shed-cum-housing and undertaking bundle strategies, they simply perpetuate the bing conditions. There has been no believing on basic demands of the manufacturer. Facilities such as land, H2O and electricity need to be provided in many topographic points that are a seaport for handloom fabrication. On the other manus, power looms are acquiring more useable support from the authorities in securing land, H2O and electricity.

  7. Design betterments
  8. While there are suggestions that handloom sector should increase its design in response to alterations in the market, the constrictions are many. The deficiency of alteration is non due to the weaver non being conformable to alter, as is bandied. Rather, it is due to involuntariness of the investor to take hazards and supply inducement to weavers for set uping the alteration.

  9. Market for merchandises
  10. Handloom merchandises require more visibleness. This means better and wider market web. One-off exhibitions organized with the support of authorities do non do

  11. Patenting designs/varieties
  12. Handloom designs are non protected. As a consequence, investors are non interested lest they end up with the hazard and those who copy the benefits. Protection options include development of handloom/silk/jute Markss and enrollment under Geographical Indications Act.

  13. Free export/import trade – chance
  14. Post the WTO Agreement on Textile Clothing, there is traveling to be more free export and import of fabrics. The handloom sector, as a traditional country, can claim some particular bundles or prejudiced steps, to protect this sort of production.

  15. Concerted system
  16. While co-ops do assist in maximising the benefits for weavers in the full concatenation of production, their present status a cause of concern. The handloom co-op system is riddled with corruptness and political intervention. Cooperatives have to go independent of district-level authorities officers in footings of direction and decision-making.

  17. Mediators ( individuals/institutions )
  18. Government has created a few research, preparation and input establishments to assist the handloom sector. These establishments include weaver service centres, establishments of handloom engineering, NIFT, etc. But their public presentation has been below par and their presence has non helped in Obviating the jobs of handloom weavers.

  19. Budget allotments
  20. Allotments for handloom in national and province budgets are being reduced. This has to be reversed. Budget has to increase with new strategies which address the jobs of the sector, in position of the linkage and the demand to protect rural employment.

  21. Enhancement of Value
  22. There is a demand for heightening the value of handloom merchandises through use of organic cotton and organic narration, application of natural dyes and by increasing the productiveness of the looms through research and invention – for illustration, alterations in the breadth of the looms and some appropriate proficient alterations.

  23. Competition and unjust competition from Millss and powerlooms
  24. Competition is now uneven, with factory and powerloom sector acquiring subsidies in assorted signifiers. Second, power looms have been undermining handloom markets by selling their merchandises as handloom.

  25. Wagess, employment and support issues

Wagess have non increased in the last 15 old ages. Some subdivisions of handloom weavers are populating in hand-to-mouth conditions, with no house or assets. These issues need to be addressed by the authorities ; at least efficaciously implement the Minimum Wages Act.


PESTLE Analysis:

The PESTLE analysis is a utile tool for understanding market growing or diminution, and as such the place, possible and way for a concern. A PEST analysis is a concern measuring tool. PEST is an acronym for Political, Economic, Social and Technological factors, which are used to measure the market for a concern or organisational unit. The PEST analysis headers are a model for reexamining a state of affairs, scheme or place, way of a company, a selling proposition, or thought.

The Model ‘s Factors

  • Political factors, are how and to what degree a authorities intervenes in the economic system. Specifically, political factors include countries such as revenue enhancement policy, labour jurisprudence, environmental jurisprudence, trade limitations, duties, and political stableness. Political factors may besides include goods and services which the authorities wants to supply or be provided ( merit goods ) and those that the authorities does non desire to be provided ( demerit goods or virtue bads ) . Furthermore, authoritiess have great influence on the wellness, instruction, and substructure of a state.
  • Economic factors include economic growing, involvement rates, exchange rates and the rising prices rate. These factors have major impacts on how concerns operate and make determinations. For illustration, involvement rates affect a house ‘s cost of capital and hence to what extent a concern grows and expands. Exchange rates affect the costs of exporting goods and the supply and monetary value of imported goods in an economic system
  • Social factors include the cultural facets and include wellness consciousness, population growing rate, age distribution, calling attitudes and accent on safety. Tendencies in societal factors affect the demand for a company ‘s merchandises and how that company operates. For illustration, an ageing population may connote a smaller and less-willing work force ( therefore increasing the cost of labour ) . Furthermore, companies may alter assorted direction schemes to accommodate to these societal tendencies ( such as enrolling older workers ) .
  • Technological factors include ecological and environmental facets, such as R & A ; D activity, mechanization, engineering inducements and the rate of technological alteration. They can find barriers to entry, minimal efficient production degree and influence outsourcing determinations. Furthermore, technological displacements can impact costs, quality, and lead to invention.
  • Environmental factors include conditions, clime, and clime alteration, which may particularly impact industries such as touristry, agriculture, and insurance. Furthermore, turning consciousness to climate alteration is impacting how companies operate and the merchandises they offer — it is both making new markets and decreasing or destructing bing 1s.
  • Legal factors include favoritism jurisprudence, consumer jurisprudence, antimonopoly jurisprudence, employment jurisprudence, and wellness and safety jurisprudence. These factors can impact how a company operates, its costs, and the demand for its merchandises.

Which are used to measure the market for a concern or organisational unitstrategic program.


Soon, handloom weavers are confronting several livehood crisis because of inauspicious authorities policies, golbalisation and altering socio, economic status. Government have been highly inauspicious retrograde and determinental to involvement of the handloom weavers Government polocies are increasing influenced by the globalisation procedure induced trade governments. Control on export get liberalized abd the domestic market go unfastened to import the fabric scenario in the state is likely to undergo drastic alteration in term of accomplishments, input like design, market tendency and altering demand therein. Government has created a few research timing and input unstitution to assist the handloom sector but their public presentation has been below par and their presence had non helped in rid ofing the job of handloom weaver.

Soon their no subsidies for handloom sector. They are wholly withdrawn. Government has to distribute the caste and profrssional dimensions of handloom sector. Government has to acknowledge the function of different communities in the handloom sector and apportion fund suitably.


The Handloom sector plays a really of import function in the state ‘s economic system. It is one of the largest economic activities supplying direct employment to over 65 lakhs individuals engaged in weaving and allied activities. As a consequence of effectual Government intercession through fiscal aid and execution of assorted developmental and public assistance strategies, this sector has been able to defy competition from the power loom and factory sectors. This sector contributes about 19 % of the entire fabric produced in the state and besides adds well to export net incomes. Handloom is unparalleled in its flexibleness and versatility, allowing experimentation and encouraging inventions. The strength of Handloom lies in the introducing advanced designs, which can non be replicated by the Power loom sector. Thus, Handloom forms a portion of the heritage of India and exemplifies the profusion and diverseness of our state and the prowess of the weavers.

Technological factor set uping

Hand weaving has been associated, particularly in the post-Independent policy preparations, with impressions of ‘cultural heritage ‘ , ‘ancient ‘ , ‘traditional ‘ industry in the state. In this rhetoric, its significance as an autochthonal engineering was frequently forgotten. On the footing of their construction, handlooms can be divided into a ) primitive looms, B ) cavity looms – throw bird and wing shuttle – and degree Celsiuss ) frame looms* . In the name of technological upgradation, since early Five Year Plans, it was envisaged to change over cavity looms into frame looms. However, such transition should take into history the addition in the sum of fabric woven, for frame looms are capable of weaving greater volumes than cavity looms and the possibility of marketing this. The greatest disadvantage of frame loom is that it occupies more infinite and is non easy to run due to increased quivers while weaving. Furthermore, it besides costs much more than a cavity loom. Pit loom has the advantage of salvaging infinite, less expensive and more wellness friendly. Besides, merely cavity looms are 122 capable of doing saris of finer counts with intricate excess woof forms. Since 1985, technological upgradation of handlooms has been synonymous with the transition of handlooms into powerlooms. However, a elaborate survey of the impact of such a transition on labors involved in handlooms, the substructure required, channels of marketing the increased volume of fabric produced, rehabilitation of the affected handloom weavers, has ne’er been paid attentiveness. Any transition, in the name of modernisation or technological upgradation, should hold the public assistance of the weavers as their paramount end.

Legal factor set uping

Handloom weavers are confronting terrible support crisis because of inauspicious authorities policies, globalization and altering socio-economic conditions. The national and province authoritiess do hold several strategies refering to production inputs, market support and development, meant to safeguard the involvements of the weaving community. Ineffective execution of the strategies and the changed context of fabric industry, increasing competition from the power loom and factory sectors have been mostly responsible for the crisis in the handlooms.

Lack of information to weavers sing assorted policies and strategies is no less a important cause for the dwindling lucks of the weaver community. Even authorities sections and implementing bureaus related to handloom suffer from unequal information and information resulting in a widening spread between policy preparation and execution. In the recent decennaries, due to miss of information and fast paced alterations, patterns in handloom sector became inactive and seemingly excess.

Environmental factor set uping

Soon after India ‘s independency the Congress Party constituted the Economic Programmes Committee to supply a wide way to the Congress Governments at the Centre and State degrees. The Committee, headed by Jawaharlal Nehru, 15 reported in January 1948.

Industries bring forthing articles of nutrient and vesture and other consumer goods should represent the decentralized sector of Indian economic system and should, every bit far as possible, be developed and run on a concerted footing. Such industries should for most of the portion be run on bungalow and little scale footing. This was a big country earmarked for rural, concerted and little graduated table industries. The general way indicated for province intercession was for enforcing limitations on big scale fabrication of most consumer goods while widening support to traditional systems of production. And yet, it is non likely that foreign trade occupied a major portion of the fabric economic system within India ‘s economic system at any clip before 1850. At the terminal of the 18th century, cloth export from India amounted to about 50 million yards1, whereas entire production within India could non hold been smaller than 1800-2000 million paces. Unfortunately, we know far more about the section of fabric production that traded abroad, thanks to European trade records, than about the section that traded locally and overland.


The penultimate article titled ” Ericulture as a Remedy of Rural Poverty in Assam: A Micro Level Study in Barpeta District ” byUtpal Kumar DeandManjit Dashighlights the function played by ericulture and endi-entrepreneurship in extenuating rural poorness and unemployment in Assam over a long period of clip. Ericulture is nevertheless non turning at a faster rate due to the deficiency of capital of the eri rearers and that of the common weavers that prohibits technological innovation and invention. Furthermore, the net income rate is non sufficiently high due to miss of organisation of the rearers and weavers and hence their hapless bargaining power. Ericulture generates employment for a big figure of unemployed people, particularly for adult females, partly or to the full in its assorted phases of activities ; despite the important rise in entire figure of households engaged in ericulture during 1991 to 2005, its portion to number work force declined due to comparatively faster growing of other ( third ) sectors of the economic system. The article concludes by detecting that endi-entrepreneurship is really of import from the point of employment and income coevals, which increase the part of ericulture well. Further, as ericulture is wholly manned by tribal adult females, it non merely helps the households by lending to income but besides provides protein full pupae to their kids and other household members.


The Handloom Textiles constitute a dateless portion of the rich cultural Heritage of India. The component of art and trade nowadays in Indian handlooms makes it a possible sector for the upper sections of market domestic every bit good as planetary. However, the sector is beset with multiplex jobs such as disused engineerings, unorganised production system, low productiveness, unequal working capital, conventional merchandise scope, weak selling nexus, overall stagnancy of production and gross revenues and, above all, competition from power loom and factory sector. As a consequence of effectual Government intercession through fiscal aid and execution of assorted developmental and public assistance strategies, the handloom sector, to some extent, has been able to surge over these disadvantages. Therefore, Handloom forms a cherished portion of the generational bequest and Exemplifies the profusion and diverseness of our state and the prowess of the weavers.


  1. texmin. nic. in/annualrep/
  2. apparel. indiamart. com/industry/handlooms/
  3. www. hepcindia. com
  4. texmin. nic. in/tex_07. htm
  5. www. ieport. com/epc. htm
  6. www. indiatogether. org/2009/dec/eco-handloom. htm
  7. indiaMBA. com
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