SECTOR OVERVIEW The handloom sector occupies a distinct and unique place in the Indian economy, besides being the largest generator of non-farm rural employment. The handloom industry is largely household based, carried out with labour contributed by the entire family. It is dispersed, spread across thousands of villages and towns in the country. Along with the artistry of weavers, the Indian handloom industry demonstrates the richness and diversity of Indian culture. The sector, which employs about 4.3 million people , is the second largest employment provider for the rural population in India after agriculture. The sector accounts for 14.9% of the total cloth produced in the country (excluding wool, silk, hosiery and khadi)and have the largest infrastructure with 2.3 million weaving looms.
The total handloom cloth production in India reached 6.7 billion sq. m in 2005- 06, registering a growth rate of 2.3%. Handloom industry in India is best known for its distinctiveness, style, traditionalism and modern technology. Each and every state in India has the capability of boasting innovative printing, weaving, embroidery and designing trends.
Kozhicode, Palghat &Trichur Tamil Nadu - Arrupukottai, Anakaputhur, Arani, Arokonam, Ayyampettai, Andipatti & Bhawani
SOME MAJOR EXPORTERS: Prapum-INDIA Vardaans- INDIA G.B.T Exports-INDIA Indu arts-INDIA C.P. Exports- INDIA J.K. Traders-INDIA Global Exports- INDIA
HANDLOOM EXPORT PROMOTION COUNCIL It is registered under the Companies Act, 1956, was constituted in 1965 by the Government of India as the nodal agency for export promotion efforts related to the cotton handlooms textile sector. The HEPC provides to its members a wide range of services which inter- alia consists: - Dissemination of trade information and intelligence - Publicity abroad for Indian handloom products - Organising business mission/buyer seller meet and participation in trade fairs abroad - Providing impetus to modernisation of handlooms for the export market - Consultancy & guidance services for handloom exporters
DOMESTIC INDUSTRY Arunachal Pradesh: Weaving, cane and bamboo work, carpet making, wood carving, ornaments Goa: Pottery And terracotta, brass metal work, laquerware / wood turning, crochet and embroidery, bamboo craft, fiber craft Himachal Pradesh: Woven craft, wood craft, stone craft, metal craft, jewelery Karnataka: Wood work, Mysore silk, metal ware, Mysore paintings Rajasthan: Antiques, pottery, dhurries and carpets, fabrics, furniture and wood carving, gesso work, jewelery and gemstones, leather ware, metal crafts, paintings, puppets and stone carving Jammu and Kashmir: Textile work, papier mache, wood carving
Madhya Pradesh: Painting, textile weaving, pottery, metal work Orissa: Palm leaf writing, weaving craft, patachitra, applique artwork Andhra Pradesh: Banjara embroidery, folk paintings, kalamkari and block printed fabrics, wood carving, Hyderabad pearls, metal works Assam: Cane and bamboo, metal crafts, pottery, handlooms Sikkim: Woolen carpets, wooden carvings, thangka paintings, handlooms West Bengal: Dhokra metal casting, pottery, muslin, kantha embroidery Bihar: Madhubani painting, bangle making, stone work, khatwa Punjab: Woodworks, phulkari, mudwork
HANDLOOM & CARPETS April to Sept US$ 116.7 mn 2009-10 to US$ 156.3 mn 2010-11 ,34% growth US,UK,Germany & Japan include IKEA, Wal-Mart, Target Corporation, Habitat and Town & Country Linen. 24 % USD 653 mn 2010-11,Middle east & Latin America staple synthetic carpets- 64.21%, silk carpets 27.11%, handmade woolen tufted carpets 23.28% & handmade woolen carpets 22.87%
MAJOR EXPORT DESTINATIONS Handloom export promotion council (HEPC) is a statutory body constituted under The Ministry of Textiles, Government of India to promote the exports of all handloom products like fabrics, home furnishings, carpets and floor coverings etc. The handloom industry mainly exports fabrics, bed linen, table linen, toilet and kitchen linen, towels, curtains, cushions and pads, tapestries and upholstery’s, carpets and floor coverings etc. The export of handloom products increased from US$ 116.7 million in 2009-10(April-September) to US$156.3 million in 2010-11, registering a growth of 34%.
The US, The UK, Germany and Japan are the major importers of Indian handloom products. Japan had been importing textile products primarily from China, but recently the focus has shifted to India, primarily due to its preference for handloom products in Silk, Flex and Jute. Some of the leading international players that import Indian handloom products include IKEA, Wal-mart, Target Corporation, Habitat and Town and Country Linen.
EXPORTS FROM INDIA: Total World trade in Handicrafts, Gifts & Decorative US$ 235 billions of which China accounts for 71 billion India at 3 billion. Minister “Dayanidhi Maran” was asked the domestic apparel industry to target exporting $25 billion worth garments by 2012, Apparel export industry provides employment to 2.5 million workers directly and three million indirectly.
COUNTRYWISE EXPORT’S SHARE OF HANDLOOMSDURING 2010-2011
GLOBAL MARKET OF TEXTILE INDUSTRY The global textile industry is expected to grow to about $ 700 billion by this year. Barely five years after the expiry of MFA(Multi- Fibre Arrangement) the firms with robust capabilities will gain in the global trade of textile and apparel. Abolishment of quotas has presented the buyers with an option to source from the most efficient and cost effective vendors and countries, for suppliers it has opened the stiff global competition driven by low costs and new legislation.
MAJOR COMPETITORS OF INDIAN HANDLOOMINDUSTRY US Textile Industry - during the 18th century Great Britain was determined to dominate the textile industry. - Britain had the power loom, a steam- powered , mechanically operated version of a regular loom for weaving. - in recent years, the US textile industry faced a challenging time - the exports were almost reduced by 5%
UK Textile Industry - the textiles and the clothing industry is the 9th largest manufacturing sector, and has a turnover of 17.7 billion per year. - the industry faces a severe competitive squeeze from low cost textile suppliers in other countries. - the strong impact of exchange rate is one of the reasons behind the collapse in production of this industry.
China’s Textile Industry - textile industry is a traditional pillar industry for the china’s economy - China’s textile industry plays an important role in the earning of foreign exchanges and contributes greatly to the development of China’s economy. - the industry has also undergone sharp plunges in economic efficiency due to unfavorable environments both in international and domestic market.
FOREIGN TRADE POLICY With a view to continuously increasing our percentage Share of global trade and expanding employment opportunities, certain special focus initiatives have been identified/continued for Market Diversification, Technological Up gradation, Support to status holders.
HANDLOOMS(a) Specific funds are earmarked under MAI / MDA Scheme for promoting handloom exports.(b) Duty free import entitlement of specified trimmingsand embellishments is % of FOB value of exports during previous financial year.c) Duty free import entitlement of hand knotted carpetsamples is % of FOB value of exports during previous financial year.
(d) Duty free import of old pieces of hand knottedcarpets on consignment basis for re-export after repair is permitted.(e) New towns of export excellence with a thresholdlimit of Rs 150 crore shall be notified.(f) Machinery and equipment for effluent treatmentplants are exempted from customs duty.
HANDICRAFTS (a) Duty free import entitlement of tools, trimmings and embellishments is% of FOB value of exports during previous financial year. Entitlement is broad banded, and shall extend also to merchant exporters tied up with supporting manufacturers. (b) Handicraft EPC is authorized to import trimmings, embellishments and consumables on behalf of those exporters for whom directly importing may not be Viable. (c) Specific funds are earmarked under MAI & MDA Schemes for promoting Handicraft exports.
(d) CVD is exempted on duty free import of trimmings, embellishments and consumables.(e) New towns of export excellence with a reducedthreshold limit of Rs 150 crore shall be notified.(f) Machinery and equipment for effluent treatmentplants are exempt from customs duty.(g) All handicraft exports would be treated as special Focus products and entitled to higher incentives.