In FY22, exports of handloom products from India stood at US$ 266.88 million.
Source: Directorate General of Commercial Intelligence and Statistics (DGCIS)
Last updated: Feb, 2024
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 23.77 lakh looms. It is also the rural region's second-largest employment provider, employing more than 3 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.
The sector employs 43.31 lakh weavers directly and indirectly throughout the country with 77% 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 2021-22, the mats and mattings exported from the country had a share of 29.60% of the total exports. Home textile constitutes over 60% of India's total handloom exports. In 2021-22 the export of carpets, rugs and carpeting accounted for Rs. 930.78 crore (US$ 124.89 million). During 2021-22, the cotton durries exports were valued at Rs. 1,419.10 crore (US$ 190.47 million).
Indian silk scarves are popular around the world. These handloom-made products form a sizable chunk of the total handloom exports during 2020-21 and accounted for Rs. 61.5 crore (US$ 7.7 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 23.5% in 2020-21 exports.
The major handloom export centres 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 April-March 2022-23, India exported cotton yarn/ fabrics /made-ups, handloom products etc. worth US$ 10.94 billion. From April 2023 to August 2023, the export of cotton yarn/ fabrics/ made-ups, handloom products etc. stood at US$ 4.82 billion.
Export Destinations
India exports handloom products to more than 20 countries in the world. Some of the top importers are the USA, the UK, Spain, Australia, Italy, Germany, France, South Africa, the Netherlands, and UAE. The USA is the biggest importer of handloom products from India, consistently the top importer for the past 8 years. During 2022-23 (April- September), the country imported handloom products worth US$ 33.75 million. The exports to the UK, which was the second largest importer of handloom from India during the same period increased to US$ 6.50 million.
European Union constituted a total of 18% of India’s exports during 2021-22, Bangladesh accounted for 12%, and UAE stood at 6% of total Indian handloom exports.
Some of the other handloom importers from India are Canada, Brazil, Greece, Belgium, Chile, Denmark, Thailand, Sri Lanka, and others. During 2021-22, these countries accounted for 37% of India's total handloom exports.
Government Initiatives
National Handloom Development Programme (NHDP)
The NHDP programme has several components that focus on various stages of the handloom business. The Cluster Development Programme (CDP) provides financial benefits to clusters and during 2021-22, 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 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 also 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.
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