India : Handloom Industry Surges Despite Stiff Chinese Competition

Despite stiff competition from China and the powerloom sector, the Indian handloom industry has seen an upswing in exports during April 2002-January 2003. Cotton handloom exports from the country including fabrics and made-ups has gone up by about 26 per cent to $456.35 million (Rs 2,214.98 crore) from $362.94 million (Rs 1,722.80 crore) in the corresponding period of previous year. Ministry of textiles had fixed a target of $550 million for handloom exports for the full year ended March 2003.

According to the latest figures available with the Handloom Export Promotion Council (HEPC), export of fabrics during the period has gone up to $148.97 million (Rs 723.02 crore) as against $83.34 million (Rs 395.61 crore) in the same period of the previous year. This shows a growth of 79 per cent in dollar terms and 83 per cent in rupee terms. In the case of made-ups, a major contributor to the overall exports of handloom, exports have increased to $307.38 million (Rs 1,491.96 crore) from $ 279.59 million (Rs 1,327.18 crore) in the corresponding period of the previous year.

The USA and the UK continue to offer good market for the Indian handloom products. They account for nearly 42 per cent of the overall exports from the country. During the period April 2002-January 2003, exports to USA has gone up by about 41 per cent to Rs 726.86 crore while in the case of UK, it increased to Rs 201 crore from 175.19 crore in the same period previous year.

Exports to other countries including France, Canada, Italy, Sweden, Australia, Spain and UAE has also gone up during the period. According to industry sources, there has been a constant innovation in the handloom industry in terms of design and products over the past couple of months. “The industry has been reeling under competition from China and the powerloom sector. We have been innovating designs so that it cannot be replicated by the powerloom sector. The industry has also been looking at different markets to export their products. This initiative has helped us improve exports during the period”, they said.