Introduction
The handloom sector of India is one of the biggest unorganized economic activities. The handloom industry in India has a long tradition of outstanding artisanship that represents and preserves vibrant Indian culture. India's handloom artists are globally known for their unique hand-spinning, weaving, and printing style. They are based out of small towns and villages of the country which transfer skills from one generation to the next. The handloom industry is the country's largest cottage industry, with 2.8 million looms. It is also the rural region's second-largest employment provider, employing around 3.52 million people in direct and allied activities.
India produces several traditional products such as sarees, kurtas, shawls, ghagra cholis, lungies, fashion accessories, bedspreads, etc. In the contemporary product category, the country produces fashion fabrics, western dresses, bed linens, drapes, kitchen linen, decorative furnishings, rug durries, etc. The handloom sector of India has the advantage of being less capital intensive, eco-friendly, having less power consumption and having the ability to adapt to market conditions.
According to the Handloom Census 2019-20, about 35.22 lakh handloom workers were employed across the country, out of which 25.46 lakh were women with a share of 72.29%. The sector employs 26.73 lakh weavers directly and indirectly throughout the country with 72% of them being women.
Export Trend
The major exported handloom products from India are mats and mattings, carpets, rugs, bedsheets, cushion covers and other handloom articles. During FY23, the mats and mattings exported from the country had a share of 12.40% of the total exports of handloom products. Home textile constitutes over 60% of India's total handloom exports. In FY24 the export of carpets and other textile floor coverings accounted for US$ 1.87 billion and Rs. 9,863 crore (US$ 1.15 billion) in FY25 (Until December 2024). During FY23, the cotton durries exports were valued at Rs. 1,159.41 crore (US$ 144.61 million).
Indian silk scarves are popular around the world. These handloom-made products form a sizable chunk of the total handloom exports during FY23 and accounted for Rs. 106.06 crore (US$ 13.2 million). The total linen products made from handlooms, i.e., cotton, bed linen, toilet linen, kitchen linen, bed sheets, napkins, pillowcases, cushion cases, tablecloths, etc. had a share of about 26.6% in FY23 exports.
The major handloom export centers are Karur, Panipat, Varanasi & Kannur where handloom products like Bed linen, Table linen, Kitchen linen, Toilet linen, Floor coverings, embroidered textile materials, curtains etc. are produced for export markets. In FY23, India exported cotton yarn/ fabrics /made-ups, handloom products etc. worth US$ 10.94 billion. From April 2023 to February 2024, the export of cotton yarn/ fabrics/ made-ups, handloom products etc. stood at US$ 10.59 billion.
Export Destinations
India exports handloom products to more than 20 countries in the world. Some of the top importers are the USA, UAE, Spain, UK, France, Italy, Netherlands, Australia, Germany, and Greece. The USA was the biggest importer of handloom products from India, consistently the top importer for the past eight years. During FY24, the country exported handloom products worth Rs. 1,146 crore (US$ 138.45 million). The exports to the UAE, which was the second largest importer of handloom from India during the same period amounted to Rs. 79.81 crore (US$ 11.16 million).
The USA constituted a total of 29.4% of India’s handloom exports during FY24, UAE accounted for 11.1%, and Spain stood at 6.4% of total Indian handloom exports.
Some of the other handloom importers from India are South Africa, Sweden, Brazil, Canada, Portugal, Russia, Denmark, Belgium, Poland, Israel. During FY24, these countries accounted for around 13.76% of India's total handloom exports.
Government Initiatives
National Handloom Development Programme (NHDP)
The NHDP program has several components that focus on various stages of the handloom business. The Cluster Development Programme (CDP) provides financial benefits to clusters and during FY22, assisted 66 clusters. In addition to this, the government provides Handloom Marketing Assistance (HMA), the Urban Haats scheme and handloom awards to develop the industry and encourage businesses in India. For the development of mega handloom clusters, the Government of India plans to provide financial assistance of Rs. 30 crore (US$ 3.9 million) to at least 10,000 handlooms.
Market Access Initiative (MAI)
The MAI launched in 2018, revised in 2021, and will be in effect till March 2026. This scheme will function as a catalyst to promote India's exports on a sustained basis. MAI is based on a product-specific approach with market studies and research on evolving the specific markets. The main activities of this initiative are marketing the products internationally, building capacity, supporting statuary compliances, conducting studies, developing projects, providing portals for foreign trade facilitation, and supporting the smaller and traditional industries. Through the MAI, various components (Trade fairs, exhibitions, market research, buyer-seller meets, etc.) of industry development will have specific ceiling budgets.
Raw Material Supply Scheme (RMSS)
The Raw Material Supply Scheme (RMSS) was approved for implementation from 2021-22 to 2025-26, with objectives of providing quality yarn at subsidized rates to eligible handloom weavers, setting benchmark prices in the market, overcoming poor dyeing facilities, and facilitating weavers' engagement in the sector. Components of the scheme include a freight reimbursement for transportation of yarn and a price subsidy of 15% on certain types of yarn with quantity restrictions, distributed through Direct Benefit Transfer (DBT) to linked bank accounts.
Governing Body
The Handloom Export Promotion Council (HEPC)
The HEPC was formed in 1965 and is a not-for-profit organization. The council supports and promotes the export of Indian handloom fabrics by undertaking market studies and trade missions, disseminating information, advising governments, and providing guidance and consultancy to exporters. The HEPC also organizes and participates in international trade fairs and buyer-seller meets in India and abroad. The HEPC was constituted of 96 members and its present membership is around 1500 across the country. This council is constituted under ‘The Ministry of Textiles, Government of India’ to promote exports of all handloom products like fabrics, home furnishings, carpets, floor coverings, etc.
RELATED SITES
No. 29A, Rajasekaran Street
Mylapore,
Chennai - 600034,
Tamil Nadu,
India
Tel.:+91-44-28476124
Fax: +91-44-28476126
Email: hepc@hepcindia.com
Website: www.hepcindia.com
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