The Evolution and Challenges of India's Handloom Industry

India's handloom industry, a symbol of the country's rich cultural heritage, has faced numerous challenges and transformations over the decades. From the reservation of specific articles for handloom production to the rise of power looms, this sector's journey is a complex tapestry of regulations, market dynamics, and artisans' resilience. Here's a deep dive into the evolution of the handloom industry and the challenges it faces today.

Historical Context: A Sector in Flux

1928: The handloom sector experienced widespread unemployment, signalling the beginning of its turbulent journey.

1932: The Tariff Board, led by Dr. John Matthai, recommended providing yarn to handloom weavers at subsidized rates. This pivotal moment marked the government's initial recognition of the sector's struggles.

1942: Following the recommendations of a fact-finding committee, the All India Handloom Board was established in 1945 to support and regulate the industry.

1950s: A series of committees and commissions, including the Textile Enquiry Commission and the Karve Committee, examined the industry's challenges. Their reports highlighted the need to reserve certain fabrics for handloom production and to limit the output of mills and power looms.

The Rise of Power Looms
Despite efforts to protect the handloom sector, the rise of small-scale power looms posed a significant threat. By 1955, power looms had gained a foothold, with the Commission recommending their integration into the textile economy due to their higher productivity and efficiency.

1974: The Sivaraman Committee reported that one power loom could displace six handlooms, underscoring the challenges faced by traditional weavers.

The Handloom Reservation Act of 1985
The Handloom Reservation Act of 1985 was a landmark in the industry's history, reserving 22 textile articles for exclusive production through handlooms. However, this list was later reduced to 11 items, including sarees, dhotis, towels, bedsheets, dhurries, dress materials, blankets/kambalis, lungis, shawls/mufflers, woollen tweed, and mekhala.

Legal and Policy Challenges
The Act faced legal challenges from power loom associations, leading to a Supreme Court stay in 1986. This delay allowed power looms to proliferate, often using loopholes to produce and market handloom items at lower prices. The stay wasn't vacated until 1993, but the handloom sector had lost significant ground by then.

Modern Challenges and the Path Forward
The introduction of GST on cotton yarn and handloom fabric in 2017 and the dissolution of the All India Handloom Board in 2020 have further complicated the industry's landscape. Despite these challenges, the handloom sector continues to adapt, with many stakeholders advocating for policy support and modernization.

As a small craft-based e-commerce business owner, my commitment to the handloom sector is unwavering. We believe in preserving this traditional craft by incorporating it into modern designs and offering customers unique, handcrafted products. By raising consumer awareness about the history and challenges of the handloom industry, we aim to inspire a more mindful approach to handcrafted textiles.

Disclaimer: This information is compiled only to bring consumer awareness and in no way to demean any political party, hard-working individual, industry, or government agency. I extend due credit to the Ministry of Textiles, the Planning Commission, & many academicians like Mr Siddarth, a Doctoral student in public policy. However, I make no representation or warranty of any kind, expressed or implied, regarding the accuracy, adequacy, & availability of complete information. The Indian textile sector is more complex than it looks from the outside, so it requires a mindful approach to creating policy, its implementation, care for the craft/craftsperson & last but not least, questioning ourselves about consumer responsibility.
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