The Aakhya Weekly #140 | Fraying Threads: The Decline of India’s Weavers
In Focus: Weavers Are Breaking Ties with Their Looms
by Mohini Tiwari
The shimmering gold, the deep temple crimson, and the intricate peacock blue threads that festoon Lakshmi’s wooden handloom are soiled. For over six months, the fabric has remained untouched, and each morning, Lakshmi runs her fingers over the lifeless threads, and not a single rupee is earned. Why? Why, when 95% of the world’s handloom fabric comes from India?
The Indian handloom industry is the oldest and one of the most significant industries in the world, with a history of thousands of years. It is the country’s second-largest job-creating sector after agriculture, employing more than 65 lakh people. Its craftsmanship and elegance portray our rich tradition and heritage’s history. The hand-spinning and weaving techniques of Indian weavers are famous all over the world. It has survived through transmitting knowledge and expertise from one generation to another. From Kashmir to Kanyakumari, handloom weaving is a family enterprise, deeply woven into the nation’s economy and the socio-economic fabric of rural India.
Despite its historical significance, the handloom sector has witnessed a steady decline over the years. An in-depth analysis of the last few Handloom Censuses demonstrates a worrying downward trend in the total number of weavers. As per the records of the First Handloom Census (1987-88), there were approximately 65 lakhs weavers and allied workers. By 2010, this figure dropped further to about 24 lakhs, and the Forth Handloom Census ( 2019-20) highlighted a further reduction, revealing a total of 3,522,512 handloom weavers and workers across the country. Year-on-year observations depict a continuous decline, with several weavers stating that increasing competition and inadequate government support drive them to seek alternative livelihoods. With an alarming reduction of 38% over two decades, the projection for the number of handloom weavers remains bleak unless serious intervention is undertaken.
Furthermore, the funds allocated to the handloom sector in the national budget have consistently declined; the allocations for the handloom sector were a mere 7.83% of the total textile budget in FY 2019-2020, a drastic drop from 27.54% in 1997-98. The FY 2024-25 allocation stands at ₹4,417 crore, however, the question remains whether this will tangibly support the handloom industry.
The handloom industry ensures the fulfilment of 15 of the 17 sustainable development goals set by the United Nations.
Understanding Handloom & Reasons for Its Downfall
Handloom weaving is an eco-friendly, sustainable craft that requires minimal energy consumption. Unlike power looms, it relies on manual operation, reducing the carbon footprint and promoting environmental sustainability. However, despite its rich legacy and ecological benefits, the weavers are struggling to sustain their craft because of the following reasons:
Rising Raw Material Costs: The escalating costs of silk yarn, cotton yarn, zari, dyes, and chemicals have significantly strained the handloom sector. While India remains the world’s largest cotton producer, export-driven price volatility has created domestic shortages, forcing weavers to procure raw materials at inflated prices. The Mill Gate Price Scheme (MGPS),1992, was meant to provide affordable yarn through National Handloom Development Programme (NHDP) depots, but logistical inefficiencies and middlemen interference have restricted its benefits.
Wage Disparities: Weavers earn disproportionately lower wages than their counterparts in informal jobs. The wages are often one-fourth of what people earn in roles such as shopkeeping or office assistance, making the profession financially unsustainable. The sector’s lack of structure leads to irregular payments and a lack of social security. Despite policies, their weak implementation leaves artisans without pension or health insurance. With inadequate state interventions in wage standardisation and collective bargaining, skilled weavers are forced to abandon the trade, exacerbating the industry’s workforce crisis.
Weak Enforcement of the Handlooms (Reservation of Articles for Production) Act, 1985: The Act, aimed at protecting traditional weavers by reserving certain textile items for exclusive handloom production, remains poorly enforced. Rampant power loom encroachments—especially in Varanasi, Tamil Nadu, and Andhra Pradesh—violate these protections, diluting the market for authentic handwoven products. Due to inadequate monitoring mechanisms and weak penalties, large-scale industrial producers can imitate handloom designs at lower prices, forcing artisans to either migrate to wage labour or shut down ancestral weaving operations entirely.
Imposition of Goods and Services Tax (GST): The 5% GST on cotton yarn and 12% GST on silk yarn have made raw material procurement costlier for handloom weavers, drastically impacting profitability. Additionally, a 5% GST on finished handloom products has increased retail prices, making handcrafted textiles less competitive against mass-produced power loom alternatives. Before GST, handloom products enjoyed tax exemptions under the Khadi and Village Industries Commission (KVIC) framework, promoting affordability. However, uniform taxation without sector-specific exemptions has disproportionately burdened small-scale weavers, accelerating the industry’s decline.
The Policy Landscape
Challenges persist despite the government’s efforts through various programs and schemes for the handloom sector. Industrialisation, globalisation, and digitisation have brought significant changes, creating opportunities and hurdles. These factors have made handlooms highly competitive yet volatile and vulnerable.
The NHDP was introduced for 2021-2026 to strengthen India’s handloom industry through market facilitation, training, raw material access, and financial support. However, its execution has been plagued by systemic inefficiencies that continue to undermine its objectives. Digital illiteracy among weavers has restricted their access to online marketplaces, while the absence of an organised e-commerce strategy has left artisans dependent on intermediaries who take unfair commissions. In addition, power loom traders and middlemen are known to manipulate government-backed handloom fairs, occupying spaces meant for artisans, misleading consumers, and undercutting genuine weavers. Furthermore, raw material procurement remains a significant challenge—middlemen manipulate yarn prices, proliferate substandard materials, and cause logistics delay.
How do we Revive Traditional Looms?
To address these challenges, NHDP could launch a dedicated National Handloom E-Commerce Platform with zero-commission sales, ensuring direct market access for weavers. The central and state governments have initiated geotagging to authenticate the origin and reputation of handloom products. However, the government must accelerate its implementation to maximise its impact, integrating it with digital platforms. Moreover, Cluster-based yarn storage facilities within 20 km of major handloom hubs should be established to prevent logistical delays. The transport subsidy must be converted into an upfront discount, eliminating reimbursement lags. Lastly, a Raw Material Price Control Authority (RMPCA) should be set up to regulate subsidised fixed rates for essential yarns, similar to MSP in agriculture, preventing middlemen from exploiting weavers.
While the Ministry of Textiles plays a primary role in managing handloom-related schemes, the industry's revival requires collaborative efforts from the Ministry of MSME, the Ministry of Skill Development, and the Ministry of Commerce. As consumers, we must change our attitude to favour handloom clothing, as it embodies centuries of artistry, cultural heritage, and sustainable craftsmanship. Since handloom products require labor and artistry, they cannot be produced at a lower cost. Ensuring the sector’s survival should be our collective responsibility, seeing it thrive again in line with India’s diverse and culturally rich legacy.
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Sahkar Taxi for Fair Ride-Hailing
Union Home Minister Amit Shah announced the Government of India’s new initiative– 'Sahkar Taxi,' a government-backed cooperative ride-hailing service designed to directly benefit drivers by ensuring they retain their entire earnings without intermediary deductions. This initiative aligns with the Prime Minister’s 'Sahkar Se Samriddhi' vision.
Drawing inspiration from existing platforms like Ola, Uber, and emerging cab aggregators, Sahkar Taxi seeks to empower drivers through cooperative societies, allowing for the registration of various vehicles, including two-wheelers, taxis, auto-rickshaws and four-wheelers. Meanwhile, ride-hailing platforms in India are struggling to meet rising consumer demand due to a shortage of vehicles.
The announcement follows increased scrutiny of Ola and Uber, with the Central Consumer Protection Authority (CCPA) issuing notices to investigate allegations of discriminatory pricing based on device type. Additionally, the government plans to broaden its investigations into pricing strategies across other sectors, such as food delivery, to protect consumers from potential exploitation.
Delhi Unveils ₹1 Lakh Crore Budget for 2025-26, Focuses on Education, Infrastructure, and Welfare
The newly formed Delhi government, led by Chief Minister Rekha Gupta, has unveiled an ambitious ₹1 lakh crore budget for 2025-26, reflecting a significant 31.6% increase from the previous year’s allocation of ₹76,000 crore. Funded through central grants and loans, the budget prioritises education, which receives the highest share of ₹19,291 crore (19.3%), followed by ₹12,952 crore for transport, including roads and bridges, and ₹12,893 crore for healthcare.
Key allocations include ₹5,100 crore for the Mahila Samriddhi Yojana, providing ₹2,500 per month to economically disadvantaged women over 18. Additional funds are set aside for expanding Ayushman Bharat, increasing pensions for senior citizens, widows, and destitute individuals, and establishing decentralised sewage treatment plants to curb Yamuna pollution.
Capital expenditure will rise from ₹15,089 crore in 2024-25 to ₹28,115 crore under the ‘Viksit Delhi’ initiative. The government will secure a ₹15,000 crore loan through the National Small Savings Fund and receive ₹12,096 crore in central grants. Additionally, projected tax revenue is expected to grow by 17%, from ₹58,750 crore in 2024-25 to ₹68,700 crore.
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