Business EconomyPosted at: May 18 2026 4:25PM


Need for generating awareness and integration of schemes in handloom and handicraft sector: Report

Sourav Shekhar
New Delhi, May 18 (UNI) There is an apparent need for generating awareness and integration of various schemes in the handloom and handicraft (HH) sector, initiated by different ministries such as MSME, textiles, and culture, said a joint report of the Institute for Human Development (IHD) and Crafts Council of India (CCI) released here on Monday.
The report, "Economics of Indian Craft", noted that the handloom and handicraft sector, which is a main source of livelihood for many families, faces multiple issues like low income of workers, limited access to markets, and various obstacles the establishments face in day-to-day operations.
Basically, official data for this sector was limited, and previously, an attempt was made in the Sixth Economic Census. At that time, each manufacturing unit was asked whether it was engaged in handloom or handicraft activities.
The primary survey was conducted in five states covering Assam, Rajasthan, Tamil Nadu, Uttar Pradesh, and West Bengal, both in rural and urban areas.
The handloom industry is characterised by manual weaving techniques, often using traditional looms operated by skilled artisans. This survey covers only the manufacturing component of Handloom and Handicraft (HH) activity.
"Only the persons/units engaged in manufacturing the handloom or handicraft products were covered in the survey, excluding thereby the units which were exclusively engaged in the trading, that is, the purchase and sale of handloom/handicraft products."
The survey found that in employment terms, out of 61 lakh persons, about 29.4 lakh were engaged in the handloom sector and 31.7 lakh were involved in the handicraft sector.
"In terms of the total number of HH units, the rural areas had a little higher share (18.7 lakh units) than the urban areas (15.2 lakh units).
''If we look at the state-wise rankings, then Uttar Pradesh ranked first (12.5 lakh units), followed by the States of Rajasthan (8.5 lakh), West Bengal(7.4 lakh), Tamil Nadu (3.3 lakh), and Assam (2.2 lakh units).''
The survey noted that female ownership in handloom establishments is followed by Rajasthan (94.5pc), Uttar Pradesh (78.2pc), Assam (68.8pc), and West Bengal (47.9pc).
"In the handicraft establishments too, the female ownership was quite significant in Uttar Pradesh (65.1pc), West Bengal (49.5pc), and Assam (44pc)."
Many organisations operating from within the household premises, and a significant proportion of handloom establishments, remain unregistered under any formal scheme or programme.
A high proportion of owners of HH units under the proprietary and partnerships have a low education level.
"Among 61 lakh workers engaged in the HH sector, the proportion of hired workers was relatively low in each State. The proportion was the lowest (5.2pc) in Uttar Pradesh and highest (37.4pc) in the State of Assam. The proportion of hired workers is generally higher in urban areas compared to rural areas."
The survey found that the majority of establishments reported that their workers were trained through traditional and inherited knowledge.
Lack of market access and financial constraints were reported by the majority of HH establishments in each state except Uttar Pradesh.
In terms of Gross Value Added (GVA), HH establishments of the five states contributed about Rs 51,445 crore.
It is with the reference year being the last accounting year (prior to the date of survey) for establishments maintaining accounts, and the last 365 days for those not maintaining accounts.
The percentage share of the HH sector in respect of GVA in relation to the overall Gross State Value Added (GSVA) by the manufacturing sector for the year 2023-24 works out to be 9.6pc for Assam, 9.9pc for Rajasthan, 0.9pc for Tamil Nadu, 3.6pc for the State of Uttar Pradesh, and 6.8pc for West Bengal.
''If we talk about GVA per worker, then the average for the five states was about Rs 84,000. In this dimension, West Bengal showed the highest number with Rs 1.25 lakh, and Uttar Pradesh has the lowest, Rs 44,000 per worker. ''
Many artisans continue to use only traditional techniques, which limits the market value. For addressing this issue, continuous up-skilling through training programmes is necessary.
"There is also an urgent need to create and implement schemes in order to improve access to raw materials, finance, and social security, given the fact that the handloom and handicraft."
"The sector is a crucial source of livelihood for millions, particularly women, as well as other vulnerable and marginalised communities."
Over the past decade, this sector has sustained many crises such as COVID-19, demonetisation, GST issues, and market fluctuations.
"However, the proportion of establishments with a decline in the scale of production in relation to the position ten years before, as well as in comparison with the pre-COVID period, has been substantially high."
The survey suggested linking youth with artisan activities through entrepreneurship schools and through higher education systems can also ensure the sector's sustainability.
Enhancing social security is also vital to retain and attract talent in this sector, which needs partnerships with other sectors to develop schemes for health, pensions, and overall well-being.
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