Handloom Sector in Union Budgets
Handloom sector has a turnover of Rs.60, 000 crore per year. Handloom products have a market demand of Rs.100, 000 crore per year. Handloom exports have reached Rs.4000 crores per year. More than 3 crore people are dependent on this sector. It is eco-friendly production, which has all the technological capacities within the country. No royalty needs to be paid to Western countries in this period of concern over carbon emissions and climate change.
Handloom sector invests more than Rs.25, 000 crores on accessing cotton yarn, and Rs.9, 500 crores on dyes and chemicals every year. Handloom production is dependent on private money lending to the tune of Rs.35, 000 crores, and pays interests between 18 to 24 percent. Handloom sector gets a paltry budget allocation of Rs.328 crores. Given the employment potential and its contribution to GDP, government has to increase the budget allocation to at least Rs.5, 000 crores, and ask NABARD to increase the credit availability for handloom sector from the current Rs.75 crores to Rs.10, 000 crores.