HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

HANDLOOM INDUSTRY OF INDIA-

A STUDY ON ITS MARKET, TREND and SUSTAINABILITY

1. Sudarsan Behera, Principal, Institute of Handloom Weaving and Design, Khordha under
Directorate of Textiles and Handlooms, Odisha, E-mail- sudarsan1962@gmail.com
2. Dr. Asimananda Khandual, Head of Dept. Fashion and Apparel Technology, College of
Engineering and Technology, Bhubaneswar, Odisha, E-mail- asimte@cet.edu.in,
khandual123@gmail.com

Abstract

The Indian Textiles and Apparel Industry had to undergo a sea change in the post WTO regime as
expected prior to the process of globalisation. There was a sceptical outlook for a drastic change
after 01.01.1995. Now one country’s market is free and open for rest of world after process of
globalisation with permanent institutional set up of World Trade Organisation (WTO) in 1995 at
Geneva along with 161 countries including India in lieu of previous GATT (General Agreement
on Trade and Tariffs). In this article, detail analysis has been made on the stability of Indian
economy in Textile and allied sector. Strength, Weakness, Opportunity and Threats (‘SWOT’)
analyses of Indian Handloom industry clearly indicate the responsible factors for the sustenance
of the sector. Market domain, trend, scope and its sustainability have been analysed. The study
reveals that the post WTO adverse impact as expected is not as visible as forecasted for the sector.

KEYWORDS
Handloom, Odisha, SWOT, WTO, PPP mode, Private Partnership, Organisation

1. Introduction

Handloom Textiles constitute a timeless facet of the rich cultural heritage of India. As an economic
activity, the handloom sector occupies a place second only to agriculture in providing livelihood to the
people. Hourly labour cost in industrial sector of a country impacts a lot for sustainability of the
particular industry. Though high hourly cost of labour indicates the status of development of the public
in the country, low hourly cost of labour indicate the scope of industrial growth. Now India has a greater
scope for industrial growth particularly in Handloom and Textile field as observed from the current
analysis. As per recent statistics, the sector contributes 14% to industrial production, 4% to India’s Gross
Domestic Product (GDP) and constitutes 13% of the country’s export earnings. By now, the country
supplies 95 per cent of world demand for hand woven fabric. The ikat and other handloom fabrics with
intricate and artistic designs, produced in leading handloom clusters of India play a vital role in export
market and attract foreign consumers to its market fold. It is accelerated after registration of those
traditional designs under Geographical Indication (GI) of IPR.

The Indian Textiles and Apparel Industry had to undergo a sea change in the post WTO regime as
expected prior to the process of globalisation. There was a deadline to all the countries for a drastic
change after 01.01.1995. The monopoly bi-lateral trade system has been phased out and multi-lateral
trade system has been introduced. Now one country’s market is free and open for rest of world after
process of globalisation with permanent institutional set up of WTO in 1995 at Geneva with 161
countries(WTO, 1995) 1 in lieu of previous GATT (General Agreement on Trade and Tariffs). India is
enrolled as one of the above countries with effect from 01.01.1995. Now WTO completely takes care for
TRIPs (Trade Related Intellectual Property Rights). Government of India, being well conscious during
the transition period, has changed its attitude and policies to face the challenges. This sector has
significant levels of environmental and social impact, and it has not yet developed an overall vision to
achieve sustainability up to the mark. (Maximilian Martin, 2013 2 and Muthu,20143). The textiles and
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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

apparel sector comprises a lengthy supply chain, which is subject to mass environmental and social
impacts.
Most of the current innovations in the apparel industry intended to achieve sustainability focus on raw
materials (that is to say, eco-friendly raw materials) and products. Nevertheless, innovations are also
being carried out in the process, logistics, recycling, and upcycling. Along this line, the World Economic
Forum 2010 (WEF, 2010)4 summarizes the limitations of current sustainability initiatives as follows:

current trends towards sustainability are welcome but inefficient. The shifts … are focused on
incremental, rather than transformative, change. While they may improve sustainability at the
margins, they are rooted in a model of consumption that is itself unsustainable.

However, the post WTO adverse impact is not as visible as forecasted in case of Textiles or
Apparel sectors. Textile sector includes the power-loom or mill sector, composite and handloom sections
which provide larger employment opportunity next to agriculture in the country like India. A visible
amount of foreign exchange also is added to the economic globe of India through it.

Handloom Textiles constitute a timeless facet of the rich cultural Heritage of India. As an
economic activity, the handloom sector occupies a place second only to agriculture in providing
livelihood to the people. It is estimated that handloom industry provides employment to 65 lakhs
workforce directly and indirectly and there are about 35 lakhs looms spread all over India during 2007-
08 (Handloom Mark)5. Again as per recent statistics, the sector contributes 14% to industrial
production, 4% to India’s GDP and constitutes 13% of the country’s export earnings. With over 45
Million people, employed directly, the industry is the second the largest sources of employment
generation in the country. The domestic textile and apparel industry in India is estimated to reach USD
100 Billion by 2016-17 from USD 67 Billion in 2013-14. Exports in textiles and apparel from India are
expected to increase to USD 65 Billion by 2016-17 from USD 40 Billion in 2013-14. The total fabric
production in India is expected to grow to 112 Billion square metres by 2016-17 from 64 Billion square
metres in 2013-14 (Textiles and Garments-Make in India.com) 6. By now, the country supplies 95 per
cent of world demand for hand woven fabric (Handloom Industry of India:
www.ibef.org/exports/handloom-industry-india)7 . India’s fibre production in 2013-14 is 7 Million
Tonnes and is expected to reach 10 Million Tonnes in 2016-17.

The India International Handwoven Fair ( IIHF) (Handloom Export Promotion Council:
hepcindia.com/)8 is the first of its kind in India was organised to showcase the exclusive products of
handloom industry to the buyers of the world community. IIHF was conceptualized by Handloom
Export Promotion Council (HEPC) in 2011 to identify sustainable marketing solutions for the
stakeholders of Indian Handloom industry. IIHF 2015 witnessed a significant improvement in terms of
number of overseas visitors with visit of 96 importers as compared to 80 importers during IIHF 2014
.Overseas Buyers from 31 countries viz. Australia, Belgium, Denmark, Finland, France, Germany,
Hungary, Italy, Japan, Mauritius, New Zealand, Poland, Serbia, Slovakia, Taiwan, UK, UAE, Malaysia,
Spain, Libya, Botswana, Chile, Egypt, Morocco, Zimbabwe, Ireland, Netherlands, Palestine, Panama,
Singapore and USA, participated in the event. Buyers from Ireland, Chile, Netherland, Botswana, Libya,
Palestine and Panama were present for the first time. Nearly 43% of the visitors came from EU region
followed by 25% visitors from Asia and Middle East region , 17% from ASEAN+2 (predominantly from
Australia ) region and 15% from USA,Canada and LAC region , Out of 96 overseas visitors 76% of
them were first time visitors for this event and 24% were repeat visitors. Consequent on successful
organisation of last five editions, Handloom Export Promotion Council is organizing the 6 th edition of
India International Hand-woven Fair, at Chennai Trade Centre, Chennai, Tamilnadu, from 9-11 March
2016 (Handloom Export Promotion Council: hepcindia.com/)8

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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

In the sector, women are involved in pre and post-loom activities like winding, bleaching,
dyeing, finishing and embroidery. Indian handloom industry has peculiar and different features in
comparison to other countries as follows (Behera, S. 2009, 44)9.
 It is perfect blend of both tradition and modernity with inherent heritage.
 Huge range of coloured products beyond spectrum.
 Exquisite design with handcrafted finish and expression of heart and soul of the weavers.
 Both full and leisure time activity.
 Adorned with high sense of ethical and aesthetic qualities.
 The craft is cultured based and tradition oriented.
 High level of value addition by handy process.
 Decentralised and widely dispersed.

The ikat or tie and dye fabrics with intricate and artistic designs, produced in leading handloom
clusters of India play a vital role in export market and attract foreign consumers to its market sphere.
Now these traditional designs, after getting registered through geographical indication under IPR,
override the sphere of export market of other traditional fabrics. The ‘Patola’ (Buhler, A. Fischer, E. and
Nobholz, M. L, 1980)10, double ikat silk sari of ‘Patan’ of Gujurat, Bandhani (Mohanty, B. C. and
Krishna, K, 1974)11, (ikat on fabrics of Rajsthan and Gujurat and many parts of world), Pagdu Bandhu,
Buddavasi and Chiticki (Mohanty, B. C. and Krishna, K, 1974)12 (ikat on yarn of Andhra Pradesh), and
Bandha (Meheta, R. N. 1961)13, (tie and dye on yarn of Orissa) ‘are now world famous due to their
quality, craftsmanship and design characteristics. Odisha ikat ranks one among other ikat producing
states in India. In spite of several hurdles, there are so many reasons for the stability of Indian economy
in Textile and allied industries which can be observed from the ‘SWOT’ of the handloom industry, being
a major contributor to it.

2. METHODS

The authors have take the help of ‘SWOT’ analysis, key stabilizing factors, present market information,
export market scenarios, hourly labour cost and market trend analysis etc to judge the sustainability of
the Indian-vs-Odisha handloom industry.

2.1 SWOT OF INDIAN HANDLOOM INDUSTRY (Behera, S.2009, p-44-45)9

STRENGTH
1. India has been known as land of Cotton, occupying 1/4th of total land on cotton cultivation.
2. Exclusive products with traditional technology not replicable in power looms.
3. Large skilled, semi-skilled work force in the sector.
4. Hourly labor cost less than most of the other competitors and have low product cost.
5. Little or no demand for energy.
6. Diversified products at different clusters of India.
7. Important products are covered under IPR protection by Government.
8. Continuous government care for the weavers and very large co-operative base in the country.
9. Cluster Development Program and various developmental schemes in PPP mode.
10. Resistant to industrial set back
WEAKNESSES
1. Inadequate and qualitative raw material provision to weavers through out year
2. Lack of market intelligence, managerial talent and TQM system
3. No or poor standardization for measurement of quality, cost and overheads
4. Slow process on product diversification and technical innovations, mechanization of
laborious process
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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

5. Use of hazardous banned chemicals in some pockets

6. Rigidity of weavers to take a change over on existing product
7. Large number of non-viable organizations in handloom sector
8. No control on overheads, pricing, heavy inventory, damaged stocks etc
9. No BEP analysis and maintaining MIS
10. No code of ethics for the mass engaged in the industry and mode of accountability
11. Government only takes care for 30% of weavers under co-operative fold
12. Interference by political systems
OPPORTUNITIES
1. Good domestic market and scope for export market
2. Government policies in favor of the sector
3. Institutional finance through NABARD
4. Implementation of Cluster Development Program in most of the handloom clusters across the
country covering master weavers and weavers beyond co-operative fold
5. Service through WSC, IIHT, NHDC, Textile Committee and HEPC etc
6. Opening of Banks for Raw materials, Designs, Apparel park etc
7. Implementation of welfare schemes like, Work-shed, MGBBY, HIS etc
8. Formulation of New Textiles policies and Handloom reservation Act
9. Attention of government on non-tariff barriers like, eco-friendly regulations, defining work
ethics, labor ethics including minimum wages act etc.
THREATS
1. Migration of weavers to other trades
2. Imitation of products, design by composite and power loom industry
3. Import of goods at cheaper price after globalization
4. Resistance in adopting eco-friendly process
5. 99% of rural producers are not aware of impact on LPG (Liberalization, Privatilisation and
Globalization)
6. Decrease in per capita cloth consumption
7. Income level of weavers is going lower day by day
8. Closure of government rebate schemes
9. Poor level of cohesion among rural institutions
The details of export to top 20 countries (Handloom Export Promotion Council: hepcindia.com/) 8 are
annexed at Annexure-II (A, B, C). The hourly labour cost is very low in India in comparison with other
countries, especially in respect of our main competitor China. The hourly labour cost of different 25
countries including India, China and Bangladesh are stated in annexure-III (Werner International Report,
2014)14. From highlights of Werner International Report it is observed that Switzerland still in 1 st place
with the highest hourly labor cost in textile industry and the position is kept constant since 1987. USA
occupies the 11th position. It is remarkable that China is rapidly approaching the 3US$ per operator hour
from 2.1 US$ in 2011 and only from 0.69 US$ in 2000. The hourly cost in India is increased from 0.58
US$ in 2000 to 1.12 US$ in 2014 still very lower rate than China, although India is the 2 nd largest
country among textile producing countries. For India to maintain and grow its market share, it is an
absolute prerequisite to be able to produce at global competitive operating cost. In theory India should
be in an ideal position to so, however it is observed that two other cost factors are not within control i.e.
financing and energy. These two factors should be focussed on priority basis in future plan and strategy.

As regards to Odisha Handloom Sector, it contributes a lot to the volume of national level Sales
Turnover. The sales figure in handloom industry of Odisha for last six years with respect to the country
is annexed at annexure-IV. (handlooms.nic.in/Writereaddata/Handloom%20report.pdf)15.(Directorate of
Textiles, Odisha, Bhubaneswar and 3rd national handloom census)
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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

2.2 KEY FACTORS:- STABILIZING INDIAN HANDLOOM INDUSTRY

• Creation of better scope for global market.
• Catching the trend-Emanation of consumers.
• Perfect SWOT analysis
• Revival of traditional designs and methods for new ethical productions
• Accelerating technological advances by exposure and capacity building of task force.
• % of garment export increases rapidly vis-à-vis fiber, yarn and fabric.
• Interface between deign-fashion with textile/apparel manufacturer and garment.
• Development of design concept as per need of international consumer.
• Cluster approach- thrust not on speed and productivity but on craftsmanship and value addition.
• Prototype production under IHDS in each growing cluster.
• Importance on TQM system introduction
• Resistance of handloom weavers to economical set back
• Credit flow by different commercial banking institutions through SHG, ACC, SCC
• Discouragement in use of artificial and synthetic products and popularity in traditional crafts
due to emanation of customers and IPR protection of leading products
• Clear vision statement of each handloom pockets in India

2.3 MARKET INFORMATION

(Observations from recent market study: Plunkettresearch:
https://www.plunkettresearch.com/)16
1. Retailing was making a strong comeback in late 2014 in the United States, after a dismal drop
during the recession of a few years back, while retailing has, until recently, been a significant
growth industry in emerging nations including China, India, Mexico and Brazil.
2. Retail sales in the U.S. totalled an estimated $5.321 trillion during 2014, according to Plunkett
Research, up about 5% for the year, and up dramatically from only $4.0 trillion during 2009.
3. Surveys show that consumers are focused on increasing their savings and paying down debt.
This means that a large number of consumers wait to purchase until they can pay cash. When
consumers do borrow, today’s low interest rates will be a great benefit. (Observations from
recent market study: Economictimes.Indiatimes)17

4. Textile Ministry eyes $60 billion exports in 2014-15

The textile industry employs 80 million people directly and indirectly.
Tex Trends 2014 is an initiative by the Ministry of Textiles, with financial assistance under the
Market Access Initiative (MAI) of Ministry of Commerce and Industry.
(Observations from recent market study: Businesstoday) 18
5. The availability and cost of labour is also becoming an issue in China. “We must take advantage
of this situation. As exporters, we must be allowed to hire temporary labour. Garment exporters
cannot survive on permanent labour, since demand is highly volatile.”
6. Textile exports were worth $30.37 billion in 2013/14, up from $26.36 billion in the previous
year – a growth of 15.24 per cent, compared to a decline of 3.11 per cent in 2012/13
7. According to commerce ministry data, the share of textiles in export earnings increased from
8.78 per cent in 2012/13 to 9.72 per cent in 2013/14
8. Readymade garments grew at over 14 per cent to $1.32 billion, manmade textiles grew near 12
per cent to $433 million while cotton yarns grew over four per cent to $808 million.
9. Improving export competitiveness over Asian peers such as China (on a depreciated rupee), a
drop in raw material prices, and healthy demand from US and Europe not only boosted exports
but also helped Indian textile companies earn higher profits in the last fiscal.
10. % of garment export increases rapidly vis-à-vis fiber, yarn and fabric.
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11. Need of interface between textile/apparel manufacturer and garment.

12. Design concept as per need of foreign consumer.
13. Thrust not on speed and productivity but on craftsmanship and value addition.
14. Challenges to be started from consumers and ended with consumers.
15. Consumers now drive the production mechanism not the vice-versa.
16. Brand can be developed only after leveling, coding and packing.
17. Traditional vs contemporary design system is as like as “push and pull” model of “supply and
demand” chain.
18. Creating ethic fusions is much popular in USA (value added ethical products).
19. High demands for eco-friendly products.
20. Growth of Industries in PPP mode.
21. Prototype production before commercialization (productionÒ cross sectional consumer panel
Ò reactions and scanningÒ rectification Ò commercial production Ò advertisement).

2.3 EXPORT SCENARIOS DURING LAST 06 YEARS

Handlooms contribute a major share to apparel sector and during last 06 years, it is seen that US
is the biggest buyer for India and it covers Rs. 658.95 crores (Handloom Export Promotion Council:
hepcindia.com/)8 during 2014-15. The details of export of handloom items is annexed at Annexure-I
(Handloom Export Promotion Council: hepcindia.com/) and summarized as follows.

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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

Export of handloom products was Rs.1253 crore (US$ 241 Million) during FY 2009-10 and
witnessed a steady increase during the Fys 2010-11, 2011-12 and 2012-13 registering Rs.1575 crore
(US$ 303 Million), Rs.2624 crore (US$ 505 Million) and Rs.2812 crore (US$ 521 Million) respectively.
Subsequently export witnessed a decline during FY 2013-14 registering Rs.2233 crore (US$ 372
Million). However, export has marginally increased during FY 2014-15 reaching Rs.2246 crore (US$
374 Million) hence, the export market is completely suitable to handloom industry.

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EXPORT TO TOP 20 COUNTRIES DURING FYS 2009-10 TO 2014-15

It is observed that USA was the biggest buyer of India during last 06 years. The country has started with
US$ 103.09 Million (Rs. 536.05 Crores) during 2009-10 and reached to US$ 109.83 Million (Rs. 658.95
Crores). A small country like Malasia started its import from India with US$ 0.85 Million (Rs. 4.42
Crores) during 2009-10 and reached to US$ 4.68 Million (Rs. 28.07 Crores) during 2014-15. The details
are shown in Annexure-II (A) (Handloom Export Promotion Council: hepcindia.com/)8

SALES TURNOVER OF ODISHA HANDLOOMS FOR LAST 06 YEARS

Odisha Handloom Industry consists of 43652 handlooms against total handlooms of 23, 77,331
available in the country ass per latest handloom census during 2009-10. It shares 1.836 % of total
handlooms available in the country and contributes 13.9614 % of total production in Square Meter of
Fabrics. The detail position of production and loom position during last 06 years is enclosed at
Annexure-IV (handlooms.nic.in/Writereaddata/Handloom%20report.pdf)15.

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2.5 HOURLY LABOUR COST ANALYSIS

Hourly labour cost in industrial sector of a country impacts a lot for sustainability of the
particular industry. Though high hourly cost of labour indicates the status of development of the public
in the country, low hourly cost of labour indicate the scope of industrial growth. Now India has a greater
scope for industrial growth particularly in Handloom and Textile field. Hourly labour cost analysis
(Survey Report Textile Industry Labour Cost of Werner International, 2014) 19 indicates that India keeps
its position at 22 among 25 countries with availability of an hourly labour cost of 1.12 US$ (Rs. 67.20)
in compassion to the highest hourly labour cost of Rs. 55.00 US$ (Rs. 3300.00) available in Switzerland
during 2014. USA keeps its position at 12th among top 25 countries with Rs. 16.80 US$ (Rs. 1008.00).
In case of India, the hourly labour cost has been increased from 0.58 US$ (Rs. 30.16) in 2000 to 1.12
US$ (Rs. 67.20) in 2014. With respect to hourly labour cost, small countries like Indonesia, Pakistan and
Bangladesh are quite below with hourly labour cost of 0.80 US$ (Rs. 48.00), 0.60 US$ (Rs. 36.00) and
0.50 US$ (Rs. 30.00) respectively. The details of hourly labour cost of all the leading 25 countries is
attached herewith at Annexure-III

Hence, there is a clear and conducive atmosphere in India for growth in Textile and Handloom
Sector.

2.6 TREND ANALYSIS

From Trend Analysis it is observed that USA keeps the highest position in import from India
followed by U.K. during last 04 years reaching at Rs. 659 Crores and Rs. 181 Crores respectively during
2014-15. Of course Germany had occupied 2 nd position during 2009-10 and 2010-11 and now its
position has been placed at 03. Sweden and Spain has occupied the last 9 th and 10th position with import
value from India as Rs. 54 Crores and Rs. 51 Crores during the year 2014-15. The details are enclosed at
(hepcindia.com/ )8 Annexure-II (B).

In the other hand, in terms of % to total export value, USA shares 29.34% with Rs. 659 Crores
and UK shares 8.07% with Rs. 8.07 Crores respectively. Where, Sweden shares only 2.40% at Rs. 54
Crores with 9th position, Spain occupies the 10 th position with a nominal share of 2.25 % with an import
value of Rs. 51 Crores only from India. The country wise position of all the top 10, is enclosed at
(hepcindia.com/)8 Annexure-II (C)
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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

3. RESULTS AND DISCUSSION

Handloom sector has seen fires and waters to adapt its sustainability in past. Very less hourly
labour cost, high level of indebtedness, unemployment and underemployment, even starvation and
suicide are the chronic problems that many weavers in India are facing as on today. In fact, they faced
the challenges at different crucial periods in past ages. On the other hand Government has been pleased
often to take initiative at appropriate time for revival of the sector. To name few, in past, ‘Janata Cloth
Scheme, Textile Policy-1985, Handloom Reservation Act-1985 and Hank Yarn Obligation scheme,
Cluster Development Programme etc have helped the weavers to strengthen their livelihood. Cluster
approach for strengthening the handloom industry definitely will drag a path towards export orientation
on adoption of following strategies.
1. To organize the weavers beyond co-operatives and develop entrepreneurship among them.
2. Formation local bodies like Federations, Consortiums etc among weavers including members
from co-operatives, SHGs, Master Weavers and also individuals for sustainable growth of the
area and lead the market.
3. Export sale at various clusters: Bigger handloom cluster may establish export centre to monitor
the exportable production and its export basing on the need of the buyers of different countries.
It can co-ordinate with the State level export cell and provide the information on latest market
trend and demand, colour forecast etc to the producer segments.
4. State level export cell: One State Level Export Cell may help to disseminate the information
among the producer segment, collected on market trend, fashion, style and color etc by its
machineries. It also can receive the orders from various agencies and supply the required fabrics
to them as per their demand. Though Boyanika, Bhubaneswar has started the work it is to be
well oriented focusing towards export.
5. Cluster monitoring cell with rigid system of accountability: Responsibility and accountability
should be fixed on the cluster level executives for each of the tasks or assignments allotted to
them on business.(Redefining the present job Role or Chart)
6. Continuous participation in International events: The cluster level cells through state level
export cell should participate in international events continuously and maintain the feedback for
future plan of action.
7. Injection of broadlooms for production of wider fabrics: Since, broad looms are very less in the
state for production of wider fabrics (Bed Spreads), special drive may be taken to introduce new
broad/wider looms for production of sufficient bed sheets/bed spreads and co-ordinate sets.
8. Cost comparison with printed (Imitation of Ikat) and woven goods: Value added handloom
fabrics to be produced for increasing the remuneration of the producers and distinct it from
printed goods. It can be done by analyzing the cost comparison of printed and woven goods. The
initiation on introduction of embroidery effects on woven ikat/Jalla fabrics should be more
accelerated.
9. Planning for timely production: Definite planning to be made to complete the lot of production
sufficient ahead from the date of requirement for supply.
10. Setting up Apparel Park at state level: As per present market scenarios, apparel parks at
cluster/state level in PPP mode are to set up for production of garments as per latest market
trend, style, color etc.
11. Adoption of eco-friendly dye stuffs, chemicals and processes: Depending upon present
international demand for eco-friendly products and ban on dyes-chemicals causing carcinogenic
effect, adoption of eco-friendly dye stuffs, chemicals and processes is of more importance. The
potential market opportunities for plant-derived natural products for textile applications is huge,
compared to synthetic counterparts, in terms of significant cost reduction and environmental
friendliness ( Islam, S. et al., 2013, Samanta, A.K., Agarwal, 2009 ) 20 . It is a matter concern
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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

that the textile processes use water, energy, and chemical intensive and cause serious
environment hazard. Thus, global awareness on environmental demands natural fiber-based
textiles, natural dye and finishes are gaining momentum in academic, research and industrial
research (Kartick K. Samanta, S. Basak,S. K. Chattopadhyay, ed. S.S.Muthu, 2014) 21,22.
12. Use of trade mark (graphical representation of product): Latest market survey says that
consumer can pay more if the products are branded and leveled with Total Quality Management.
Hence branding of products by using registered trade mark is more essential in present
era.Levinson Elsa of Stockholm University has conducted an important survey to see if
consumers have a willingness to pay extra for an environmentally friendly garment or the
garments those are produced by environmental friendly process. He has reported that 89% of the
respondents expressed their willingness to pay extra (Levinson, Elsa, 2010)23 .
13. Use of Geographical Indication and other IPR: Now people are more conscious about IPR and
the products can be protected by using GI and other IPRs and restrict others to replicate them
without authorization or royalty.
14. Restriction on dumping of specific product: Lastly but not least, restriction is to be made on
dumping of specific product for prolonged period to avoid accumulated losses.

4. CONCLUSIONS

Presently, various components under National Handloom Development Programme all over
India has given a new direction through holistic approach for stabilization and development of small and
medium enterprisers involved in various trades with ‘Make in India’ concept. NHDP, through
Development Commissioner for Handlooms, New Delhi is providing all sorts of assistance to the
weavers in each segment with an aim to cover all the individual, co-operative, master weavers along
with the Self Help Groups. Apparel Training and Design Centre, Bhubaneswar, National Institute of
Fashion Technology, Bhubaneswar, Indian Institute of Handloom Technology, Bargarh, Institute of
handloom Weaving and Design, Khordha etc are functioning in the state to interface with apparel and
garment industry. Government has come forward to set up garment industry in PPP mode to connect
with the production of ikat fabrics by handloom weavers of the state. Recently, the initiatives taken by
Government of Odisha to set a large garment industry in the campus of ‘Utkal Spinning Mills, Khordha
by allotting 10 acres of land out of total available land of 41 acres of the mill’ are praise worthy. The unit
is supposed to be set up as a joint venture between Odisha Government and ‘Sai Export Garments’,
Panjab providing direct employment to more than 2500 unemployment youths of Odisha. But the main
objective is to create more workforces i.e. multiple ikat weavers in the state. (Daily Odia news paper the
‘Samaj’, 2015)24

As per provision under cluster development programme, diagnostic study is being conducted
first with the broad objectives to identify the critical issues, developing capsules for different issues
linked with business cycle at various handloom clusters, strategy for application of the capsules, vision
building of each cluster and provide sustainable livelihood to the weavers including all the remedies for
the identified weaknesses and threats to the industry. Here is a clear and conducive atmosphere in India
for growth in Textile and Handloom Sector.

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Annexure-I
Table indicating export of Handloom products during FYs 2009-10 to 2014-15 (hepcindia.com/ )
S.No. Category HS Code Product Description 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15
Value Value Value Value Value Value
INR USD INR USD INR USD INR USD INR USD INR USD
12 50079010
51129050 Handloom fabrics 11.32 2.17 40.07 7.70 16.02 3.08 4.57 0.85
0.002 4.22 0.71 4.87 0.81
Combed wool 0.01 0.001 - - - - 0.01 - - - -
3 52083121 Sarees of handloom 3.57 0.69 0.68 0.13 1.52 0.29 4.16 0.77 - - - -
4 52084121 Sarees of handloom 0.06 0.01 1.16 0.22 0.01 0.001 1.22 0.23 3.12 0.52 0.19 0.03
5 52084921 RMH 8.65 1.66 5.63 1.08 18.37 3.53 10.40 1.93 9.12 1.52 5.36 0.89
6 52085920 Sarees of handloom 0.03 0.01 0.05 0.01 0.03 0.00 0.24 0.05 0.39 0.06 0.34 0.06
7 Fabrics 52091111 Dhoti,handloom 4.81 0.92 2.87 0.55 2.44 0.47 2.02 0.37 1.57 0.26 0.90 0.15
8 52091112 Saree,handloom 0.82 0.16 0.70 0.14 0.69 0.13 1.13 0.21 1.38 0.23 1.77 0.30
9 52091113 Casement,handloom 0.10 0.02 0.16 0.03 0.13 0.02 0.00 0.0003 - - 0.01 0.00
10 52091114 Furnishing items 0.36 0.07 0.12 0.02 0.01 0.002 0.09 0.02 0.00 0.001 0.10 0.02
11 52091119 Other fabrics, 33.89 6.52 19.22 3.70 34.32 6.60 17.55 3.25 33.88 5.65 73.58 12.26
12 52095111 Lungis of handloom 1.46 0.28 0.53 0.10 5.06 0.97 10.65 1.97 5.96 0.99 11.48 1.91
13 58021950 Terry towelling 0.13 0.03 0.30 0.06 0.00 0.0000 - - 0.01 0.001
Sub total 65.21 12.54 71.48 13.74 78.58 15.11 52.05 9.65 59.63 9.94 98.59 16.43
14 Floor 57024230 Carpets, rugs 0.28 0.1 15.85 3.05 68.98 13.27 91.03 16.86 163.75 27.29 125.69 20.95
15 coverings 57050024 Durries and druggets) 12.01 2.31 38.06 7.32 68.72 13.22 112.76 20.88 240.39 40.06 205.02 34.17
16 57050042 Mats and rugs 45.86 8.82 93.11 17.90 238.91 45.94 415.35 76.92 544.47 90.75 583.84 97.31
Sub total 58.14 11.23 147.02 28.27 376.61 72.43 619.14 114.66 948.61 158.10 914.55 152.43
17 Clothing 62141030 Scarves of silk 0.84 0.16 2.17 0.42 32.88 6.32 68.83 12.75 54.58 9.10 68.03 11.34
18 Accessories 62160020 Gloves , mitters 0.02 0.004 1.03 0.20 3.38 0.65 5.19 0.96 12.13 2.02 14.06 2.34
Sub total 0.86 0.16 3.20 0.62 36.26 6.97 74.01 13.71 66.71 11.12 82.09 13.68
19 63022110 Other bed linen, 105.86 20.36 126.05 24.20 198.12 38.10 136.43 25.30 87.53 14.59 96.63 16.11
20 63025110 Other table linen: 29.15 5.6 34.55 6.64 78.26 15.05 142.72 26.43 58.51 9.75 39.26 6.54
21 63026010 Toilet and kitchen 319.88 61.52 512.86 98.60 1091.56 209.91 946.41 175.26 75.38 12.56 64.89 10.82
22 63029110 Other linen, 37.09 7.13 42.79 8.23 65.14 12.53 123.31 22.84 107.44 17.91 108.15 18.03
23 63041940 Bed sheets and covers 32.91 6.33 70.38 13.54 114.00 21.92 82.35 15.25 99.51 16.59 37.39 6.23
24 63049211 Counterpanes 1.91 0.37 3.26 0.63 4.71 0.91 1.02 0.20 0.68 0.11 87.41 14.57
25 Madeups 63049221 Napkins 65.37 12.57 49.20 9.46 71.13 13.68 52.89 9.80 75.19 12.53 2.39 0.40
26 63049231 Pillow cases, slips 94.69 18.21 87.22 16.80 80.97 15.57 96.45 17.90 113.41 18.90 51.42 8.57
27 63049241 Table cloth, covers 191.27 36.78 157.46 30.28 153.17 29.46 180.60 33.45 134.04 22.34 66.53 11.09
28 63049281 Cushion covers 154.20 29.66 129.11 24.83 107.11 20.60 132.34 24.50 174.50 29.08 216.71 36.12
29 63049291 Other furnishing 79.73 15.33 108.53 20.90 97.94 18.84 145.62 27.00 187.77 31.30 236.37 39.39
30 63049991 Silk furnishing 9.45 1.82 25.05 4.82 5.49 1.06 3.34 0.62 5.72 0.95 131.41 21.90
31 63049992 Wool furnishing 3.24 0.62 4.37 0.84 5.90 1.14 8.61 1.60 14.04 2.34 3.43 0.57
32 63071030 Floor cloth 3.85 0.74 2.43 0.47 59.01 11.35 14.68 2.72 24.42 4.07 9.25 1.54
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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

Sub total 1128.58 217.04 1353.25 260.24 2132.51 410.10 2066.77 382.77 1158.15 193.02 1151.25 191.88
Grand Total 1252.81 240.92 1574.95 302.87 2623.96 504.61 2811.97 520.79 2233.11 372.18 2246.48 374.41

Table indicating export of handloom products to top 20 countries during FYs 2009-10 to 2014-15 (hepcindia.com/ ) Annexure-II (A)

Table indicating movement of top 10 export destination during FYs 2009-10 to 2014-15 (hepcindia.com/ ) Annexure-II (B)
S.NO Country 2014-15 Export Value Position during Position during Position during Position during Position during Position during
INR crore 2014-15 2013-14 2012-13 2011-12 2010-11 2009-10
1 U SA 659 1 1 1 1 1 1
2 UK 181 2 2 2 2 3 3
3 GERMANY 155 3 3 3 3 2 2
4 ITALY 96 4 4 8 5 5 4

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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

5 FRANCE 91 5 5 5 7 6 5
6 AUSTRALIA 89 6 8 4 4 4 6
7 JAPAN 70 7 6 7 6 12 7
8 NETHERLAND 62 8 9 11 8 9 9
9 SWEDEN 54 9 12 14 12 11 10
10 SPAIN 51 10 11 16 11 13 13

Trend analysis
Table indicating top 10 destinations during FY 2014-15 (hepcindia.com/ ) Annexure-II (C)

Total 1508 67.12

Total exports during 2014-15 INR crore 2246

Hourly labour cost analysis (Survey Report Textile Industry Labour Cost of Werner International, 2014) Annexure-III

Sl No Name of the Country Approximate US$ per operator hour Remarks

01 Switzerland 55 Highest in world textile industry since 1987
02 Australia 38.5
03 Austria 34.5
04 Belgium 34.25
05 France 31.25
06 Germany 29.75
07 Ireland 25
08 Japan 24.75
09 UK 23.90
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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

10 Italy 22.15
11 Spain 19.60
12 USA 16.80 12th place
13 Israel 12.25
14 Taiwan 10.10
15 Portugal 9.80
16 Poland 5.15
17 Argentina 3.25
18 Mexico 2.40
19 China 2.15 Rapidly approaching 3 from 2.1 in 2011, 0.69 in 2000
20 Thailand 2.00
21 Malaysia 1.95
22 India 1.12 Increased from 0.58 US$ in 2000 to 1.12 in 2014
23 Indonesia 0.80 Lowest side
24 Pakistan 0.60 Lowest side
25 Bangladesh 0.50 Lowest side

SALES TURNOVER OF ODISHA HANDLOOMS FOR LAST 06 YEARS IN COMPARISON TO NATIONAL LEVEL TURNOVER
Annexure-IV
(handlooms.nic.in/Writereaddata/Handloom%20report.pdf)

Sl Year Odisha India

No. Turnover in Lakh units Turnover in Lakh units Remarks Remarks %
Sq Mtr Value Total Looms Sq Mtr Total working % Sq. Looms
working engaged for looms available Mtrs engaged
looms production
available

01 2009-10 103.15 8729.40 43,652 32170 680.6 23, 77, 331 15.1557 1.836

02 2010-11 43,652 29483 690.7 14.4549 1.836

89.84 9555.51 23, 77, 331

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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

03 2011-12 43,652 42563 690.1 13.1183 1.836

90.53 11327.81 23, 77, 331

04 2012-13 43,652 39468 695.3 13.2144 1.836

91.88 13438.84 23, 77, 331

05 2013-14 43,652 39939 711.6 13.9614 1.836

99.35 15912.19 23, 77, 331

06 2014-15 43,652 36037

115.63 20566.62

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 HANDLOOM INDUSTRY OF INDIA-A STUDY ON ITS MARKET, TREND & SUSTAINABILITY

Competing interests

The author declares that he has no competing interest.

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