The handloom industry plays a vital role in providing sustainable employment, stimulating local economies, and promoting social empowerment. By choosing handloom, one chooses a sustainable and economically beneficial future. Gauravi Patel points out that heritage apart, the traditional craft has a number of economic advantages over mass-produced goods, making them a viable and sustainable choice for consumers.
Handlooms, a traditional craft that has been passed down through generations, offer a unique blend of cultural heritage and economic benefits. These wares and textiles, woven by hand, present several economic advantages over mass-produced goods, making them a viable and sustainable choice for consumers.
When consumers prioritise buying locally made handloom items, it strengthens nearby economies. Retailers, wholesalers, distributors, embroiderers, dyers, and printers all contribute to job creation and the maintenance of local craftspeople. Purchasing handmade goods creates a ripple effect that benefits various sectors of society, resulting in multiplier returns.
Handloom artisans retain ownership and control over their creations. They have the freedom to design and produce textiles according to their creative vision, without the constraints often imposed by mass-production industries. Moreover, they have control over their tools and selling strategies, allowing them to adapt quickly to market changes and customer preferences.
The handloom industry of India is one of the oldest and the largest cottage industries in India. The sector is one of the largest sectors of unorganised economic activities. And, with over 28 lakh looms, it is India’s largest cottage industry and the second-largest employment provider in rural areas with the direct and indirect or allied engagement of more than three million people.
As per the Handloom Census 2019-20, there are more than 35,22,500 handloom workers employed across India and of these a little over 72 per cent are women handloom workers. The handloom industry is flourishing owing to large exports from India that includes items such as carpets, bedsheets, other handloom articles, etc.
The demand
The major handloom export centres in India that produce wares for export are Kannur, Varanasi, Panipat and Karur. The popular items of export include curtains, linen, embroidered textile materials, etc. The top importers of Indian handloom products are USA, UK, Spain, Australia, Italy, Germany, France, South Africa, the Netherlands, and UAE.
For the last eight years, USA remained the biggest importer of handloom products from India. In 2022-23, USA imported handloom wares from India amounting to a total of USD 58 million. The second largest importer in the same year was UAE with imports valuing USD 12.72 million. In terms of share, USA exports comprised 32 per cent of the total handloom exports from India in 2022-23 while UAE exports totalled seven per cent and Spain came to 6.9 per cent.
In the 2022-23 period, other countries that also imported handloom items from India included Japan, Brazil, Portugal, Sweden, South Africa, Canada, Russia, Malaysia, Singapore and Belgium with the share totalling to 14 per cent.
More than 60 per cent of India’s total handloom exports are the home textiles. In 2022-23, the export of rugs and carpets alone totalled INR 784.93 crore (US$ 97.95 million). In the same period, cotton durries exports accounted for INR 1,159.41 crore (US$ 144.61 million). Indian silk scarves, in high demand around the world, accounted for INR 106.06 crore (US$ 13.2 million).
In the period from April 2022 till March 2023, India exported handloom products worth USD 10.94 billion and these primarily included cotton yarn / fabrics / made-ups. In the period following that, from April 2023 to February 2024, the export of these same items was valued at USD 10.59 billion.
Low production cost
Handloom items have lower manufacturing costs compared to factory-made items. The production process doesn’t require expensive machinery or high energy consumption, making it cost-effective. The savings in production costs can be passed on to consumers, making handlooms an affordable choice.
Additionally, they also offer shorter supply chain times. The production process, from raw material to finished product, is often localised. This reduces the time and cost associated with transporting goods across long distances, leading to quicker delivery times and lower carbon emissions.
Also, there are reduced inventory risks unlike mass production, which often requires large minimum orders. Handloom production can be easily adjusted based on demand. This flexibility prevents overproduction and reduces the risk of unsold inventory. Handloom producers also have the ability to be more responsive to market trends. They can quickly adapt their designs and production based on changing consumer preferences, ensuring their products remain relevant and in-demand.
Handloom products offer flexibility in product customisation because each piece can be individually crafted to meet specific customer requirements, allowing for a high degree of personalisation that is not possible with mass-produced items.
Boosting local economy
Handlooms have strong connections to local economies. They provide employment opportunities and help preserve traditional skills and knowledge. By purchasing handloom products, consumers are directly supporting local artisans and contributing to the economic vitality of their communities. The handloom industry, a traditional sector of the Indian economy, is a significant source of livelihood for millions of people, particularly in rural areas.
This industry is characterised by its labour-intensive nature, with a substantial portion of the workforce being women. By employing them, the industry provides the weavers, artisans and other workers with a steady source of income. It plays a crucial role in income generation and poverty alleviation.
Interestingly, handloom workers typically earn higher wages per unit produced compared to those in mass-production industries like garment manufacturing. This is because handloom products are often seen as premium goods due to their unique, handmade quality and the labour involved. Consumers are willing to pay a higher price for these items and that means better wages for the artisans.
The handloom industry also stimulates local economies. The money earned by handloom workers is often spent within their local communities, supporting other businesses and services. This cycle of income and expenditure helps to boost the overall economy.
A significant portion of the handloom workforce is made up of women. This industry promotes female participation in formal employment, empowering them economically and socially. Women who work in the handloom industry often gain increased independence, self-confidence, and respect within their communities.
The income generated from handloom work helps improve access to education and healthcare services. Families with a steady income are more likely to send their children to school, leading to better educational outcomes. Similarly, they are more likely to seek medical care when needed, leading to improved health outcomes.
Trade balance
Handloom exports contribute significantly to India’s foreign exchange earnings, positively strengthening its trade balance. The export of handcrafted items promotes tourism, encourages cross-cultural exchanges, fosters diplomatic relationships between countries, and showcases Indian craftsmanship on the international stage. Additionally, exporting handloom products supports domestic industries by attracting foreign investment and increasing demand for locally sourced raw materials.
Investing in the handloom industry uplifts rural areas by driving economic activities, improving living standards, promoting inclusive growth, supporting agricultural diversification, enhancing food security, encouraging agroforestry integration, and conserving natural resources. Handloom centers act as hubs for entrepreneurial training, skill development, value addition processes, and marketing schemes. While rural transformation occurs gradually, it significantly impacts India’s holistic economic growth trajectory.
The handloom industry plays a vital role in providing sustainable employment, stimulating local economies, and promoting social empowerment. By choosing handloom, one chooses a sustainable and economically beneficial future.