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India : Budget allocations for Handloom sector: Issues & problems by Dr. D. Narasimha Reddy
January 8, 2007 |  |
Introduction:
Another budget is in the offing, in one or two months. While the larger issue of medium term fiscal policy is raised in many forums, the annual budget is a sure reflection of poor budget management in India. Growth is normally enabled through budget allocations.
Annual budgets do also indicate the priorities of the government, and the direction in which it wants the growth and development to happen. Unfortunately, there is no linear link between budgets, plan and policies of the government. What is said in policies is not reflected in the policies, and what the policy says is not followed up with allocations. Planning process is entirely different, with insufficient linkage with the policies and budget allocations.
This situation can be clearly seen in the case of handloom sector.
Big disappointment:
Presently, handloom weavers are facing severe livelihood crisis because of adverse government policies, globalisation and changing socio-economic conditions. There have been number of suicides. Ineffective implementation of the schemes meant for handloom development and the changed context of textile industry - increasing unfair competition from the powerloom and mill sectors - has been responsible for the crisis in the handlooms.
There appears to be an inadequate appreciation among the legislators and policy makers of the actual state of the handloom sector, the appalling conditions of weavers and the fate of the policies meant for them, and the consequences therein for the individual, communities and the economy.
Government policies are increasingly influenced by the globalisation processes and are related to WTO-induced trade regimes. Government of India has been continuously reducing budget allocations for the handloom sector over the past several years. This is especially glaring in the last five years.
Click here to read Budget Allocations for Handloom Sector; Issues and Problems by Dr. D. Narasimha Reddy:.
GET LATEST UPDATE ON UNION BUDGET 2007-2008
| | | | Centre for Handloom Information and Policy |  |
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