SUSTAINABILITY OF THE HANDICRAFT

The Indian handicraft and handloom industry forms an integral part of rich cultural heritage
of country. It is an unorganised, decentralised, labour intensive cottage industry which
provides employment to craftspersons in rural and semi urban area.
There are around 23 million people engaged in this industry today and the tangible
contribution by this sector is evident in significant export earning with major destinations
being developed markets like US, UK, UAE, Germany, France, LAC, Canada etc.
The global market for crafts is projected to reach around USD 700 billion by 2019, Indias
present share is below 2 per cent, representing significant growth opportunity.
Strengths Of The Sector

Availability of abundant and cheap labour

Use of Local resources

Low capital investment

Unique craftsmenship

As a low carbon footprint industry (using natural and organic material), it has
environment benefits too.

Challenges Faced By The Sector

Low literacy and education level

Poor exposure to modern technological skills

Lack of adequate finance

Poor institutional framework

At macro level competition from mechanised goods.

Efforts Taken By The Government

a) Weavers Service Centres of the office of DC Handloom under the Ministry of Textile,
plays pivotal role in skill upgradation, capacity building and provide technological
intervention to handloom weavers for better productivity as artisan engaged in production
need to be reminded and made aware about the value of their skills and also to upgrade
it continuously.
b) Mega Handloom Clusters scheme: In developing clearly identified geographical
locations that specialises in specific products, skill upgradation imparting design inputs,
improving infrastructure facility and health facilities to meet and understand the changing
demands both at domestic and at international level.
c) India Handloom Brand: Launched on occasion of first national Handloom Day on
August 7, 2015, for branding high quality handloom products with zero defects and zero
effects on environment.

d) Also an MoU was signed between Ministry of Textiles and Ministry of Skill Development
and Entrepreneurship to promote skill development and Entrepreneurship in handloom
industry.
Some More Problems Faced By The Sector

Lack of professional guidance that is available to artisans in product design to cater to

swift changes in consumer tastes and preferences. To address this concern, NIFT has
integrated the craft cluster initiative into its curricular that allows students to work in
collaboration with artisans and weavers from different geographical areas of country. For
example, NIFT (Chennai) has been working with Kozhikode cluster in Kerala which deals
predominantly with 2-age old crafts of region viz. handloom weaving and uru.

Absence of direct marketing outlets and difficult access to urban areas persist as
challenges to artisans today. Therefore market linkages of artisans and cluster has to be
strengthened, technology can be used for this purpose, e-commerce is thus a priority of
Ministry of Textiles.

The craft sector can benefit through multi-stakeholder approach by increased

participation of different stakeholders, each of whom can support artisans in different
ways. For example, Aqua weavers of North East Development finance Corporation, an
Assam based organisation which turned to the perennial and polluting water hyacinth to
come up with range of interesting products like bags, home dcor, utility products.

A Look into GI Products

GI protects the traditional knowledge of the communities of weavers through GI registration
for an many as 143 products. For example:
1. Chanderi(MP) a woven fabric origin around 1305 AD
2. Kota Doria sarees woven at Kaithoon and villages of Rajasthan made of cotton and
silk yarns.
3. Pochampali(Telangana),
Kanjeevaram
silk
(Tamil
Kalamkari(Andhra), Maheshwar, Kantha(West Bengal).

Nadu),

Srikalahasthi

4. Jamdani(West Bengal) Vividly patterned sheer cotton fabric.

Conclusion
In an increasingly mechanised, homogenised world, ensuring the sustainability of skills,
techniques and traditional knowledge behind Indias myriad handicrafts and handloom is a
major challenge, rigorous efforts is therefore needed to be made to provide children of
artisans with education, training, access to market and with wages for a dignified livelihood
to enable them to continue their family and community which have gives India a unique
place in world of handcrafted products.

ENSURING WORKERS WELFARE

Textile industry is one of the oldest & largest industries in India and Government of India has
been trying to provide healthy environment to textile industry workers so that they can
produce qualitatively better produce and thus Government of India is implementing welfare
scheme according to their needs some which are as follows:
1.

Welfare Measures for Power Loom Sector

(a) Group Insurance Scheme (GIS) - Power Loom Weavers, being in low income strait, are
not covered by any life or health insurance scheme as they live in unhealthy
environment. Thus, GIS was launched in July 2003 continues in 12th Plan and is
implemented by Ministry of Textiles. It covers insurance against permanent or partial
disability and natural or accidental deaths.
(b) Textile Weaver Rehabilitation Fund Scheme (TWRFS) - Under this, workers are provided
interim relief in event of closure or partial closure of a textile unit or any part of it. As
many as 1,17,751 workers of 98 closed textile mills across India were paid relief to tune
of Rs. 319.66 crore till August 2016.
2.

Welfare Schemes For Handloom Workers

Handloom weavers are spread across India and are also found in remote and tribal areas,
therefore, their social security life is getting more complex day by day.
(a) Mahatma Gandhi Weaver Insurance Scheme (MGWIS)- Similar to GIS for power loom
weavers, it covers insurance against permanent or partial disability and natural or
accidental deaths.
(b) Health Insurance Scheme (HIS) In 12th Plan, the Cabinet Committee on Economic
affairs has approved HIS on pattern of Rashtriya Swasthya Bima Yojana (RSBY) of
Ministry of Health and Family Welfare. On March 29, 2016, the Ministry of Health issued
detailed directives to provide benefits of RSBY to handloom weavers which also provide
for an insurance cover of Rs. 30,000 to hospitalised patient.
3.

Economic Assistance to Poor Artisans

Artisans who are poor and more than 60 and have won awards like Shilp Guru/ National
Award/ National Merit Award and whose annual income is less than Rs. 30,000 are given
monthly assistance of Rs. 3,000.
4.

Welfare Scheme for the Weavers of Handicrafts Sector

(a) Rajiv Gandhi Shilpi Swasthya Bima Yojana(RGSBY)

-

Aims at providing medical facilities to the artisan along with 4 other family members.

Artisans pay only on Rs. 30 for his registration and Government of India bears 75% cost
of scheme and rest 25% by State Government (for NE and J&K, GOI born out 90%).

Now scheme is merged with RSBY and from April 2017 Ministry of Health and Family
Welfare will be responsible.

(b) Aam Aadmi Bima Yojana (AABY)

-

Life Insurance Corporation of India implemented Janshri Bima Yojana in 2004-05 to

provide Life Insurance cover to artisans of handicrafts sector.

Its name has been changed to Aam Admi Bima Yojana on the recommendation of
Expenditure Finance Committee (EFC).

5.

Welfare Scheme for Workers of Jute Sector

(a) Jute workers welfare scheme Cleanliness of Mill Area: aims at providing cleanliness
facilities to the workers of jute mills along their family members cleanliness blocks
having toilets, wash basin etc for men-women provided in these mills.
(b) Scholarship for promotion of Education aims at providing scholarship for promotion of
education among the children of jute mill workers especially female children.
(c) Life Insurance Scheme Mill workers belonging to SC and ST is valid initially for 3 years
(August 2016-March 2019). This scheme has 2 components -(i) Pradhan Mantri Jiwan
Jyoti Bima Yojana (PMJJBY). (ii) Pradhan Mantri Suraksha Bima Yojana (PMSBY).

The Ministry of Textiles gives top most priority to the interest of the workers and endeavours
continuously to improve various welfare schemes meant for them and thus monitors the
scheme from time to time for the benefit of textile workers.

Q1 Successful implementation of labour welfare activities are an extension of

democratic values in an industrialized society. In light of this statement, discuss
about the governmental initiatives taken for labour welfare in textile sectors. Also
suggest what further can be done to ensure the welfare of workers in textile industry.

JOB CREATION AND INCLUSIVE GROWTH

In India, growing workforce and demographic dividend has put this issue of job creation on
centre-stage and textile and apparel industry, with its high employment elasticity, holds
immense scope for absorbing large chunk of Indian workforce.
Revival of Indian Textiles

For several centuries, India was a major producer and exporter of silk and cotton textiles
goods because of its core traditional strength. But this got impacted by colonial rule
owing to its policies. Post independence, with opening up of Indian economy in early 90s
coupled with Governments special focus in textile, this sector once again entered into
growth phase.

The Indian textile industry holds inherent advantage of raw material availability of natural
as well as manmade fibres and availability of employable manpower. Leveraging its
advantage India emerged as 2nd largest exporter of textile and apparel in world, with an

export value of US $ 40 bn. i.e. approx 5% of global trade. Textile sector contributes 2%
to countrys US $ 2.3 trillion GDP and is second largest employer after agriculture.
Indias Demographic Dividend
1.28 billion people India is 2nd most populated country almost 66% Indian population i.e.
approx 850 million at working age which is likely to increase by 169 million by end of 2030.
Therefore, this demographic dividend can be utilised in labour intensive sectors like textile
and apparel by India to emerge as manufacture hub.
Employment Potential
The sector currently employs more than 5 crore people directly and 6.7 crore in allied
sectors like cotton, jute, sheep rearing etc. As a thumb rule it is presumed that for an
investment of Rs. 1 crore in a fully integrated textile and apparel manufacturing set up, 30
jobs are created while for apparel manufacturing alone 70 jobs are created for every 1 crore
investment.
Inclusive Growth
Majority of Indian population resides in rural parts, where basic education and other facilities
are not available. Thus person from rural area can become employable in textiles sector with
3 to 4 weeks training and for these reasons the employment creation in this sector goes
unrivalled.
Women already constitute 70% of workforce in apparel sector. It also provides job
opportunities to millions in under privileged sectors of society and gives them means of
stable income.
Textile Market Growth Projections
Increasing disposable income of consumers and propensity to spend on clothing items has
increased the growth prospects for this sector and therefore, it is expected that textile and
apparel market will grow from US $ 119 bn to US $ 400 bn by 2025-26.
Skilling People Creating an Enabling Environment
Job creation requires high growth for which large investment in manufacturing is required.
This, in turn, will increase the demand for skilled labour to which a lot of focus should be
given. Few Govt initiatives in this regard are:

Integrated Skill Development Scheme (ISDs) for development of skilled workforce in

textile sector which leverages the expertise of textile training institutions.

Furthermore skilling in unorganised sector is promoted under Handloom Sector and

Handicrafts sector scheme of Government of India.

Under Skill India Mission an elaborate and effective training framework has been
implemented.

For textile and apparel sector, 2 sector skill council have been formed (a) Textile Sector
Skill Council (b) Apparel Made ups and Home Furnishing Sector skill Council.

Special Package for Garment Sector

To spur growth in garmenting industry, Government delivered the special package which
includes labour reforms like introduction of fixed term employment which will help increase
labour supply and employability in garment sector during peak season, increase in overtime
limit from 50 hours to 100 hours which will lend to increase earning for workers easing of
section 80 JJ AA of Income Tax to support employment in garmenting sector.
Government will also bear entire 12% of EPF contribution for 3 years for new employers
also EPF made optional those who earning less than 15000 per month which will leave more
in hand cash with workers.
Conclusion
Through its recent initiative in Textile and Apparel Sector, the Indian Government has
opened a new narrative narrative of optimism, of enhancing exports,of jobs creation and of
consequent social transformation. Thus textile sector will attract large scale investment and
will serve to attain the vision of hon'ble PM.
Q2 How can textile & apparel sector generate elasticity for job creation & lead to
inclusive growth. Also discuss the steps taken by government to augment these
sectors.

TECHNICAL TEXTILES THE SUNRISE INDUSTRY

Textiles engineered for specific end-use requirement are called Technical Textile (TT).
These textiles are preferred for technical end use over plastics, metals, papers & films due
to unique properties, porous structure, light weight, high length to thickness ratio, drapability
and many more attributes.
Opportunities and Factors
1. Population hike and used life span, thus great demand of TT in hygiene and healthcare
textile.
2. Increase income and hence increased purchasing power of Indian consumer. Therefore,
more spending on products of luxury, comfort, improved lifestyle, cleanliness, etc.
3. TT is highly techno-oriented and relatively new, therefore less domestic competition.
4. Higher returns compared to conventional textiles attracts entrepreneurs.
5. Majority of Indian consumers are now well educated because of penetration of
internet/TV etc about the benefits of the use of TT and cost effectiveness.
6. Demand of TT depends on growth of particular sector. Therefore, increase in automobile
sector has generated demand for automobile textiles and medical tourism for medical
textiles.
7. Growing industry demand for certain TT products.

8. India 2nd largest textile based economy in world, hence strong pressure of entire supply
chain, import-export relationships, infrastructure, benefits the TT Sector.
9. Cheap Labour useful for growth of TT.
Challenges
(1) Lack of speciality of Raw Material: Non-availability of high performance raw material,
fibres, yarns, fabric etc. Therefore, importing such materials adds to cost and time.
(2) Lack of Technology: Similar to raw material, technology also imported which adds to cost
and time hence affects competitiveness.
(3) Lack of skilled manpower: Being based on complex structure, TT require high interdisciplinary knowledge and skilled workforce.
(4) Lack of proper norms/standards: Being at infancy stage, norms and standards of many
TT products not available or obsolete.
(5) Lack of Awareness: Majority of Indians still lack education and live in rural places and
thus are either not aware or cant afford TT products.
(6) Lack of World Class R&D Facilities: Indian universities/colleges/R&D centres require to
invest more to setup world class R&D centres with a clear focus on product oriented
R&D.
(7) Lack of Uniform Coding System: In order to identify and distinguish TT products for
exports, a uniform coding system for TT (HSN codes) is required.
(8) Lack of well organised TT Sector Being in SME sector, it is more decentralised than
conventional textile manufacturers.
(9) Lack of Business specific Infrastructure: in terms of easy logistics, water, waste disposal,
telecommunication, high speed interact, etc.
(10)

Competition from global players like China.

Government Initiatives
1. Schemes for Growth and Development of Technical Textiles (SGDTT) was aimed to
develop Centres of Excellence (COEs) to develop awareness about technical textiles.
Services offered at COE are Training, Technical Consultancy, R&D, DPR (Detailed
Project Report), Pilot Scale Production, Standard Formulation, Incubation, and Prototype
Development.
2. Technology Mission on Technical Textile (TMTT): It is aimed to improve basic
infrastructure (like testing facility, R&D, skilled manpower, promotion of entrepreneurs
etc.).
3. Focus Incubation Centres It would be provided to new entrepreneurs until they
establish themselves in business, and then they could shift to their own facilities.
4. Schemes promoting usage of Agro textiles and Geotechnical textiles in NE Region.

5. Additionally, several State Governments are also offering incentives to investors and
Loan subsidy schemes towards new and upgradation of machinery under TUFS (Techno
Upgradation Fund Scheme) and ATUF (Amended Techno Upgradation Fund Scheme).
6. STZP (Scheme of Integrated Textile Parks). Setting up of greenfield industrial park
specific to textile sector and designing infrastructure specific to the industrial
requirement.
7. Focus Product Scheme for TT (MEIS): To promote TT exports by providing duty credit
Scripps.
8. Ministry of Textiles is also working on regulatory norms for TT products which will help to
increase demand and consumption.
9. Manufacturing Regions for Textile in Apparel Sector (MRTA) to promote and sustain
investments, also for establish of manufacturing facilities for domestic and export led
production in apparel and other textile sectors.
Conclusion
TT are new emerging areas in field of textiles and India today is at an advantageous position
compared to many technical textile manufacturing countries because of unique advantages
like lower labour cost, raw material availability, huge domestic market, etc. Adding to this,
helpful government policies provide huge opportunity to this sunrise industry.
Q3 What do you understand by Technical Textile. What are its benefits over
conventional textile. Analyse the scope of technical textile in emerging as a sunrise
industry.

ACCELERATING GROWTH IN INDIAN TEXTILES(SCHEMES)

1. Indian textiles Sector 2nd largest employer after agriculture, generating employment to
over 45 million people and contributing 4% to countrys GDP, however gets diluted due
to certain disadvantages like
-

Technological obsolescence

Multiplicity of taxes and levies

Poor productivity of labour

High cost of capital

Lack of aggressive marketing and poor infrastructure etc.

Of this, technology obsolescence of Indian textile can be overcome by modernisation which

increases production, enhances quality, reduces cost of production, rationalises labour, etc.
Therefore, as a matter of long term strategy, industry requires technology upgradation for
which Government of India introduced Technology Upgradation FundScheme (TUFS) in
1999 for the promotion of modernisation of textile sector and then Amended Technology

Upgradation Fund Scheme (ATUFS) from 13th January 2016. TUFS contributed nearly
79% of total investment since its inception till 31.3.2015.
2. Research and Development Scheme: to give full support for basic research 70% in
case of applied research and 60% in research contracted by industry.
3. Special Package for Employment Generation and Promotion: by Union Cabinet of
Rs.6000 crore for exports in textile and apparel sector.
4. Focus Incubation Centres: to provide new entrepreneurs to test and commercialise
their products on a Plug and Play model.
5. Market Development Assistance: for participating in International inhibition and
organising buyers sellers meet in Indian market.
6. Mega Cluster Development Scheme: to create common facilities in the textile cluster
and to create forward and background linkages in these clusters.

Other Initiatives by Ministry of Textiles

1. In-situ upgradation of 74500 plain power looms for Rs. 39 crore to modernise and
upgrade textile sector.
2. 56.50 crore for subsidy support for establishment of 44 Group Worksheds.
3. 10.37 crore assistance through corpus funding to set up 29 Yarn Banks.
4. Funding 72 textileparks under Scheme for Integrated Textile Parks (SITP).
5. Social welfare scheme like Textile Workers Rehabilitation Fund, Group Insurance
Scheme, Pradhan Mantri Rojgar Protsahan Yojana etc.
Inspite of challenges like setting up of common effluent treatment plants to meet the
directives of court, strengthening of its fibre base both cotton and manmade, penetration in
International Markets enough foreign tender agreements, India is well poised towards growth
in textiles through vibrant entrepreneurial base and proactive government support which will
help this sector to grow to its fullest potential.

KHADI: A ZERO CARBON FOOTPRINT INDUSTRY

Azadi ke phele Khadi for nation and Azadi ke baad Khadi for fashion, these lines
said by Honble Prime Minister has its very essence lead since past. As a nation we have
remained distinctly grooved to cultural and traditional ways of lives.
In 1920, mid of British imperialism in India, Gandhiji launched khadi, as a political
weapon of nationalism within the swadeshi movement. By calling it the livery of freedom, he
brought the eternal symbolism of self sufficiency to India. Khadi and Village productivity
became a grand source of nationalism. Khadi became a symbol of peace and icon of our
freedom and national existence based on the efforts and contribution of rural masses.

Khadi is by far the largest rural productivity programme in world wherein 1000s of
families directly reach their produce to consumers without the menace of middlemen.
Essentiality of Khadi

Over 5000 institution and more than 320 lakh micro enterprise forms the vast network
machinery, implementing the objective of KVIC.

Khadi activity is predominantly women based and over 80% khadi artisans are women.

The sector generates over Rs. 40,000 crore turnover, out of which 40% flows back under
khadi activities to rural communities as livelihood support.

At a time now, when world is talking about ill effects of climate change due to synthetic
textile industries, the khadi sector which is hand spun, hand woven, using no electricity in
production is the basis for India to establish it on world stage as a zero carbon footprint
industry.

Synthetic textile industry is one of the largest greenhouse gas emitter, amounting to
about 1/20th of total carbon produced and therefore khadi can became a yarn of future.

Initiatives by Khadi and Village Industries Commission (KVIC)

KVIC was established as statutory body by Government of India under KVIC Act, 1956. It is
a tribute to power of self sufficiency that built a nation.
1. One yarn, one Nation Under this tagline KVIC organised a one month national Khadi
Exhibition from 5th May to 4th June 2016 in Srinagar-showcasing products made by 198
Khadi Institutions from all over the country.
2. KVIC appointed international fashion designer Mr. Ritu Bai as Advisor to commission so
that state of art multi fashion design can be made on khadi garments and promoting it in
country as abroad.
3. World`s largest charkha[30 feet long, 17 feet tall, 9 feet wide] made of Burma teak,
installed by KVIC at T-3, IGI Airport, where millions of people all over the world can
pause and appreciate its historic symbolism for India.
4. One of the main mission of KVIC is employment generation in rural areas and over 2
million opportunities have been created under PMEGP (Pradhan Mantri Employment
Generation Programme) which will further help in halting the rural migration.
5. KVIC also wishes to utilise solar energy to run weaving units thereby reducing
dependence of physical labour.
With this background, KVIC has an onerous responsibility of engaging the poorer and rural
masses in productive employment. Bringing insurance to weavers, including them in reliable
network of health services, enhancing educational capacity and getting their efforts a global
recognisation is most coveted objective of KVIC.
Q 4 The potential of Khadi as an instrument of poverty alleviation was recognised by

our early planners. While the output and employment of Khadi and Village Industries

have grown manifold during the last five decades, their role in the context of the new
paradigm of development has been questioned. Discuss

PROMOTING INDIAN JUTE SECTOR

Jute is the 2nd most important fibre after cotton & has several socio-economic and
environment related advantages. On agriculture side it provides supplementary income to
farmers& approx 40 lakh farmers are believed to be involved in jute cultivation.
Recently with the advent of synthetic fibres popularity of jute waned, but due to
environmental concerns such as use of plastics which are non biodegradable, jute being bio
degredable is poised to make a comeback and therefore the Jute Packaging Material Act
was conceived to create a demand for jute sacking, the most important jute product.
The Jute Packaging Material Act Boon or Bane?
Under JPM (compulsory use in packing commodities) Act, 1987, Government
specifies the commodities and the extent to which they are compulsorily required to be
packed in Jute Packaging Material. In India, foodgrains and sugar are to be packed in jute
sacking which is purchased directly by Government from jute mills.
Therefore, this law has given tremendous support to jute mills in last 3 decades, and it was
hoped that in this protection phase Indian jute industry would diversify, develop new
products, and create new markets. But contrary to this, industries became more and more
dependent on JPM Act for its survival and dependent on one product i.e. sacking purchased
by government. Thus, JPM has not incentivised jute industry to diversify adequately. The
extent of development of new products and markets, remained at very modest level.
Whereas in Bangladesh, jute industry was exposed to market forces. The jute industry got
indirect help from government and govt encouraged private commerce to use jute
packaging. Therefore, Bangladesh has done significantly better than India, both in terms of
production of raw jute and exports. Indian jute mills, not able to make inroads to foreign
market, is also losing domestic market steadily due to cheap imports from Bangladesh.
Improvement of the Fibre and Fabrics
Fibre Quality produced in India is average or below average. This quality of fibre is
primarily used in making coarser yarn, suitable for making sacks. Farmers are not inclined
towards producing better quality fibre as there is no sufficient demand and premium for high
quality fibre.
Another concern lies in retting of jute as water sources are shrinking and this limited
resource is facing farmers to rett jute in road side ditches, dirty water which further results in
poor quality jute fibre.
Solution to this lies in encouraging farmers to adopt better agronomic practice such as
use of certified seeds, timely access to manures/pesticide,line sowing& timely weeding etc
and better promotion of this high value aided jute so that demand increases.

Jute ICare (Improved Cultivation and Advanced Retting Exercise) Project , launched
in 2015, aims at providing certified seeds at subsidised rate, seed drills to facilitate line
sowing, nail weeders to remove weeds, and popularise newly developed retting technology.
For example Novozymes, largest industrial enzyme manufacturer, with Indian Jute
Industry Research Association and Jute Corporation of India has prepared enzyme to
achieve retting with very limited water and within weeks time.
Technology level of machinery also dates back to days extent to British era. Even the latest
technology introduced with the help of Jute Technology Mission (JTM) belong to 1980s.
Therefore, availability of modern machine should be encouraged so that fine yarn can be
produced which is essential for meeting high value products and increasing income for
farmers.
Products and Possibilities Endless (OPPURTUNITIES)
Several products like hand bags, footwear, jute decorative items, tapestry, furnishing,
hand woven rugs and carpets, etc. are made from jute. Today, even the internationally
acclaimed brands (Harrods, Marks and Spencer) market products of jute and jute blended
fabrics. Therefore the need of hour is to create more designs according to changing
consumers taste.
Apart from wooden fabrics, a very important product using coarser variety of jute fibres are
non-woven textiles forming a part of technical textiles. Non- woven jute fabrics are used in
home insulation, air conditioners, and automobile interiors.
Jute Geo Textiles (JGT) with its strong eco-concordance and environmental benefits also
becomes natural choice for policy makers and civil engineers for addressing various
geotechnical problems in civil engineering.
Looking Beyond JPM Act Conclusion

Jute industry became more and more dependent on law for its survival, and
administered price regime has further eroded its competitiveness. Therefore, a fresh look
to JPM Act should be offered to encourage competitiveness and growth of sector.

The objective of increasing the income for jute mill workers and farmers can be served
much better if the value addition in jute products increased and that is possible with
diversification and creation of ew markets.

JPM Act would still be required to protect the industry during the period of its
transformation perhaps gradual reduction in extent of reservation under the law
coupled with support for industry to modernise and diversify would save the jute sector
from oblivion.

Q5 June industry in India is suffering from fall in domestic demand as well as rising
competition from international players like China and Bangladesh. Discuss the
scenario of Indian jute industry with respect to Jute Packaging Material Act 1987.

SILK TEXTILE INDUSTRY CHALLENGES AND WAY FORWARD

Sericulture refers to mass scale rearing of sericigenous insects in order to obtain silk.
Silk produced by other insects other than mulberry have now been given a new identity and
are called Vanya Silks.
Silk the Queen of Textiles has emerged as a much sought fibre after textile fibre all
over the globe. Silk Textile industry activities also align with 5 out of 17 SDGs like (i) poverty
alleviation (2) empowering women (3) sustainable and inclusive economic growth; (4) full
and productive (5) Rejuvenation of flora and reverse land degradation.
Other significant merits of sectors are High labour force participation rate , Involvement
of women (> 60%) , 60% income flows back to primary products, Eco-friendly operation, By
products (like sericin, pupae) providing extra income etc.
Strengths Of India Silk Industry

Contributes 14% to the worlds silk production

2nd largest producer after China

Indian Silk Industry with about 1.2 million practitioners and employment potential of 8.28
million people accounts for over 20% share of Textile sector.

Only country producing all 5 varieties of silk

Global monopoly for production of golden Muga silk

Southern zone agro climatic conditions suitable for sericulture throughout the year.

Exports

Even after being 2nd largest producer the market share of Indian silk export is less than
10% as about 85% silk goods produced are sold in domestic market.

However, exports to extent of 15% consists of all types of silk goods being exported to
traditional markets like USA, European Countries, and small markets of Asia Region.

Challenges and Way Forward

1. Urbanisation in Traditional Sericulture Area: Industrialisation and urbanisation
process has led to rising land and labour costs, thus hampering the horizontal expansion
of sericulture. Therefore, augmenting the production base to non-traditional areas like
M.P., Maharashtra will certainly augment the raw silk production to great extent.
2. Augmentation Bivoltine Raw Silk Production: Bivoltine sericulture is very technology
and capital intensive. Therefore to overcome this challenge we need to invest more for
quality bivoltine seed production, strengthening farmer level infrastructure, creating
advanced post-cocoon facilities. The popularisation of bivoltine sericulture depends on
three pillars Scale, Speed and Skill. Central Silk Board that is shouldering the
responsibility of developing the silk sector across the country has plans to produce about
8500 MT of bivoltine raw silk by2020 to make India import free country as far as silk is
concerned.

3. Depleting Water Table: Sericulture in India is practised in areas which are largely
dependent on rain. Hence excessive irrigation is causing depletion of water table. To
combat this problem, thrust on rain water harvesting, drip irrigation, etc. is required. Per
Drop, More Crop approach to promote sericulture through optimum utilisation of water.
4. Conversion Task: Producing quality cocoons, improved machinery and adopting
modern technology will ensure production of internationally competitive raw silk. Central
Silk Board has developed indigenous Automatic Reeling Machine (ARM) to extract silk
from Mulberry cocoons and promoting Make in India.
5. Improvement of Genetic Base: International collaboration for exchange of genetic
resources for developing high yielding and disease tolerant breeds is need of none and
therefore Central Silk Board (CSB) has initiated such projects with NIAs, Japan,
Bulgaria, Romania, China, etc.
6. Global Branch Recognisation: India is yet to find top place in international silk trade.
The global recognisation for its brand image, as China possess, can be done by
conducting exclusive international silk expose in India, participation of Indian exporters in
international arranging media campaigns, etc.
7. Thrust for Vanya Silk: Vanya Silk production is less than 25% due to

Limited area under Vanya Silk host plant therefore to ensure better productivity
need is to conserve the natural host flora and to take up block plantation of vanya
host plants in forest, revenue, and private lands.

High gestation period Need is the identification of high rooting, early sprouting,
and fast growing genotypes to reduce gestation period.

Demand-Supply gap in silkworm seed production Strengthening silk worm seed

production system and taking up research for vanya will address the issue.

8. Demographic Dividends and New Hopes: India will have more than 60% young
generation (<35 years) in near future. This will have added advantage for this industry.
Role of women is also becoming more important and therefore resulting in sab ka sath,
sab ka vikas.
9. Poor Credit Flow: Inclusion of sericulture under agriculture, fulfilling the criteria of
MSME qualifying for priority sector lending, CSBs initiative through Bankers Awareness
Programme, support to community Based Organisation awareness programmes with
NABARD for better understanding on financial requirements etc can help to get
adequate credit for sector.
10. IT and remote Sensing Applications: Existing and potential areas for developing
sericulture in selected states are mapped through ISRO remote sensing satellite images.

IT tools like App.net, Kiosk etc. to provide

farmers/reclers/weavers and thereby to empower them.

SILKS (sericulture Information Linkage Knowledge System) portal developed by

CSB with North Eastern Space Application Centre (NESAC).

right

information

to

11. Mechanisation in Sericulture: Mechanisation in mulberry cultivation, silkworm rearing,

seed production, disinfection and cocoon harvesting have added to production potential
in sericulture.
12. Price Volatility: Stable and remunerative prices for cocoons and raw silk should be
ensured and for this following interventions are suggested:

Unified National Cocoon Marketing

Introduction of e-auctioning in government markets

Creation of price stabilisation fund

Establishment of cocoon banks and yarn banks.

13. Silk for non-Textile Purpose: Owing to recent advances in biomedical sciences, silk
has increasingly been used as biomaterial to make scaffolds sponges, films, gels, nanoparticles and nano-fabrics. These high value products will bring additional benefits to
sericulture industry.
Conclusion
The potential of ever growing global and domestic market for silk, with features like income
generation in rural and semi-urban areas, high participation of women and socially under
privileged groups, potential of export earnings etc. has made silk industry attractive and
further it can be improved by prudent investment and farsighted development planning.

INDIAN TEXTILES: GLOBAL SCENARIO

Global recovery continues, but at an ever slowing and increasingly fragile pace In 2015,
the volume of world trade continued to grow slowly, recording weak but positive growth of
2.7%. Demand in global market across sectors, remains muted but amid a slowdown, Indias
textile sector managed to grow approx 1% in Financial Year 2016.
Textile Industry Trade: India and World

Indian Textile and Clothing (T&C) Industry is backbone of Indian economy as it

contributes in:
o

5% National GDP

21% employment

14% Industrial Production

Exporting 1/3rd of its production

Earning 12% forex

Creating jobs for 10 million people in less 15 years.

World Trade in T&C estimated USD 745 billion 2015 and expected to grow CAGR of
6% further increasing to USD 1,120 billion by 2020.

T&C sector employs over 170 million people worldwide predominantly in Asia.

In 2015, India achieved level of USD 37.22 billion in exports of T&C and its share in
world trade in T&C was 5%.

Top ten suppliers of textiles exported goods worth USD 319.35 billion during JanuaryDecember 2015, accounting a share of 71.21%. USA was largest importer of textiles in
2015, with imports reaching level of USD 29.01 billion.

India continues to be 2nd largest exporter of textiles to world after China exporting
knitted goods worth US 20.05 billion in January-December 2015 with 6.28% share in
world trade.

While many countries reported negative growth in import of textiles Vietnam imported
USD 19.16 billion followed by Bangladesh USD 8.94 billion both marking growth at
5.47% and 5.45% respectively.

The industry faced many challenges (2015-16) relating to global recession price
fluctuation of raw material like cotton, high cost of utilities like power and fuel,
infrastructural bottleneck i.e. high logistics and transaction cost.

Employment in Textile Sector

Industry making significant contribution to employment generation as every $ 1 billion

of output is estimated to generate 25000 direct jobs and forex (foreign exchange)
earnings.

According to Ministry of Skill Development and Entrepreneurship, Government of India,

the textile and apparel industry has a major role to play in Governments Make in India
campaign through its contribution to employment generation. Report states that overall
employment in sector would increase from about 33-35 million in 2008 to 60-62 million
by 2022.

Strength and Opportunities An Analysis

The Indian textile sector has much strength like:
(1)

High self sufficiency in raw material;

(2)

Leading producer of cotton in world;

(3)

Easy availability of low cost manpower

(4)

Strong entrepreneurial skills.

Opportunities available for growth of Indian Textiles:

(1)

Manufacturing of high value premium items by producing high value added products.

(2)

Technical Textile offers innovative and technologically superior products.

Conclusion
To achieve the vision set up by Honble Prime Minister i.e. to increase textile business size
from current USD 108 billion to USD 300 billion 2023 measures like following can be taken:

(a)

Focus on R&D, design and marketing capabilities

(b)

Building Indian Home Textiles and Garment brands for world and domestic markets.

(c)

Expedite negotiations on Indian FTAs with EU, Canada and Australia.

(d)

FDI and investment.

(e)

International Quality Standards need to be maintained across all level of production.

(f)

Improving productivity of sector training and skill building.

Some Facts and Extras about Indian Textile Sector

India is the 2nd largest producer of silk; 2nd largest textile manufacturer in world; highest
loom capacity with 63% share of the worlds market; and accounts for 24% worlds
spindles and 8% worlds rotors.

Global Competitiveness China global leader in textile and apparel trade 36.13%
share, India second 5.13% share, Bangladesh third 4.39% share.

E-Portal for Pashmina Products: named, www.phamb.co.in to sell pashmina products

and boost global sale.

Impact of GST on textile sector: Union Ministry of Textiles estimates that for the textile
sector as a whole, the adverse effect of a price rise on demand will be just neutralised by
a positive income effect if the GST rate applicable to all textile segment is 12%. But
demand in case of three textile segment namely khadi, cotton textiles, carpets would be
adversely affected. This will led to substitution effects within textile sector encouraging
greater use of man-made fibre based textiles and blends that use relatively more
synthetic fibre.

Impact of Brexit on Indian Textile Sector: India is the 3rd biggest foreign investor in UK
after US and France. Total trade between UK and India was 16.55 billion last year.
India saw UK as a gateway to enter the rest of Europe by setting up factories in UK
which enable their products to be sold in rest of Europe. Indian exports of $ 10 billion
worth of textiles and apparels to European Union of which 23% ($ 2.5 billion) goes to
Britain. With such close trading relationship the country sees Brexit as an opportunity to
develop closer ties with UK Trade/Industry and government need to harness efforts in
close co-ordination to reap the benefits.