Handloom Sector in Union Budgets


Summary


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. Handloomexports have reached Rs.4000 crores per year. More than 3 crore people aredependent on this sector. It is eco-friendly production, which has all thetechnological capacities within the country. No royalty needs to be paid toWestern countries in this period of concern over carbon emissions and climatechange.


Handloom sector invests more than Rs.25, 000 crores onaccessing 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 apaltry budget allocation of Rs.328 crores. Given the employment potential andits contribution to GDP, government has to increase the budget allocation to atleast Rs.5, 000 crores, and ask NABARD to increase the credit availability forhandloom sector from the current Rs.75 crores to Rs.10, 000 crores.


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