Indian Economy News

Fintech Tide, North-Eastern Handicrafts and Handlooms Development Corporation to support 2.1 million handloom weavers, 3.5 million handicraft artisans in Northeast

In order to empower and digitise the handloom and handicrafts industry in the Northeastern area, the UK-based SME-focused digital banking services provider Tide announced the signing of a Memorandum of Understanding (MoU) with the Northeastern Handicrafts and Handlooms Development Corporation (NEHHDC).

The partnership intends to increase market access for Northeast India's 800 clusters' 2.1 million handloom weavers and 3.5 million handicraft makers by fostering financial inclusion. The project would make it possible for the handloom industry to utilise digital solutions based on artificial intelligence, the Internet of Things (IoT), and ERP deployment, among other things, for inventory tracking and mapping.

The partnership comes at a time when the Government of India has been pushing for digitalisation of the handloom and handicraft industry, says Mr. Gurjodhpal Singh, Chief Executive Officer (CEO) of Tide India. They are happy to work with NEHHDC and are optimistic that our project will not only improve financial inclusion for these companies but also open fresh doors for expanding commercial prospects and promoting Indian culture and history.

As a part of the MoU, Tide will help with the financial inclusion of the weavers and artisans from the region, and provide masterclasses on topics such as leadership, marketing, capital investment, hiring and payroll, taxation, and legal, among others. The company will also build a network of artisans and weavers and help organise annual events for Small to Medium Sized Enterprises (SMEs).

The company also mentioned that the region contributes to 65% of India’s total handloom production with the highest number of handloom weavers in India and women participation of around 88%. The program is centred around the Tier-2 and Tier-3 regions and helps ‘women in business to benefit from the mentoring of knowledge-sharing sessions that will help overcome administrative challenges.

According to Brigadier Mr. Rajiv Kumar Singh (Retired), Managing Director, NEHHDC, Lack of access to money and formal financial expertise are prevalent difficulties for small enterprises and startups throughout the world. By giving nano entrepreneurs the skills, information, and resources, they need to successfully plan and manage their finances, the MoU between NEHHDC and Tide India will be a game changer that will address a critical part of their success. The partnership intends to improve the entrepreneurial ecosystem in Northeast India.

By linking artisans with potential markets and customers, the NEHHDC, which is an agency of the Ministry for Development of Northeast Region (DoNER), focuses on the growth and promotion of the region's indigenous crafts. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripura are the eight North-Eastern states in which it is active.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.