Yojana and Kurushetra Gist

Yojana And Kurukshetra Gist – April 2019

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Major Highlights in Yojana and Kurushetra magazines

The most important sector covered are Indian textile sector with Art and craft industry and handloom industry. Khadi industry is also a major highlight for this month. Another important highlight is rural tourism.

Indian Textile and Handloom Industry

Indian policymakers ruled out fast domestic industrial expansion in a misguided attempt to help small scale industries. As a result, India was stuck with debilitating rules and regulations while the whole world was progressing. India’s share is 3.1 per cent in the global garment industry, lower than most countries in the world.

Components:

  • Power looms – 61.32% contribution
  • Mills – 3.34%
  • Handlooms – 11.28%

Exports: India’s overall textile exports for FY 2017-18 were US$ 39.2 billion and are expected to increase to US$ 82 billion for FY 2018-19.

Market Size:  Currently US$ 150 billion. Expected to reach US$ 250 billion. The sector contributed 7% of industry output, 2% of GDP and 15% to export earnings.

Investment: FDI during April 2000 to December 2018 was US$ 3.09 billion.

Major Investments – May 2018 – ₹27,000 crore since June 2017. Government is aiming to boost exports by US$ 31 billion and create more job opportunities and attract investments.

Textile-art-craft-india

To Clothe a Billion People

The decentralised power looms/ hosiery and knitting sector form the largest component of the textiles sector.

An Excellent Vehicle for an Employment Creation Strategy, or NOT!

India needs to create formal and productive jobs to generate exports and growth. Women need more jobs in this sector.

Why India is losing out

  • India’s competitors have zero tariffs and better market access
  • On logistics, India is weaker than other countries by increased costs and time for procurement and exports are not made directly adding travel costs
  • Labor costs especially regulations on minimum pay, taxes, lack of flexibility and high minimum wages
  • The industry is not in par with the demand

Way Forward: Employment, exports and social transformation is needed to make India’s markets boom

Government Initiatives and Schemes in textile sector

The government has allowed 100% FDI

Other initiatives taken are:

  1. The DGFT has revised rates
  2. As of August 2018, the government has increased basic custom duty to 20%
  3. It has announced a special package to increase investments
  4. It has started the A-TUFs scheme to help with investments
  5. IWDP is approved to provide support in the wool sector

Various Schemes introduced

  1. Scheme for Capacity Building in Textile Sector (SCBTS) with an outlay of Rs 1,300 crore (US$ 202.9 million) from 2017-18 to 2019-20
  2. PowerTex India Scheme
    1. Pradhanmantri Credit Scheme for Power loom Weavers
    2. Pradhan Mantri Mudra Yojana
    3. Solar Energy Scheme
    4. In-situ Upgradation Scheme for Plain Powerlooms
    5. Yarn Bank Scheme
  • Scheme for Integrated Textile Parks improves employment generation with the use of infrastructure
  1. SAMARTH- scheme for capacity building in Textile Sector provides skilling programmes and livelihood
  2. Silk Samagra- integrated silk development scheme has four components
    1. R&D, Training, Transfer of technology and IT initiatives
    2. Seed organizations and farm extension centres
    3. Coordination and Market Development for seed, yarn and silk products
    4. Quality Certification System (QCS)
  3. North Eastern Region Textile Promotion Scheme (NERTPS) develops handloom sector by providing government support
  • National Handicraft Development Programme (NHDP) has the following components:
    1. Base Line Survey & Mobilization of Artisans
    2. Design & Technology Upgradation
    3. Human Resource Development
    4. Direct Benefit to Artisans
    5. Infrastructure and Technology Support
    6. Research and Development
    7. Marketing Support & Services
  • Comprehensive Handicrafts Cluster Development Scheme (CHCDS) has mega clusters and special projects
  1. Scheme for promoting usage of geotechnical textiles in North East Region (NER) has the following objectives:
    1. To demonstrate use of geotechnical textiles as cost-effective technology
    2. To improve the durability, function and life of infrastructure in NER
    3. To promote the use of geotechnical textile materials
    4. To stimulate investment and development of technical textile industry
    5. Develop a set of standards and specifications
    6. Introduce modern cost-effective technology

Achievements

I-ATUFs was launched, 381 new block level clusters were sanctioned, 20 new textile parks were sanctioned and employment increased to 8.62 million in FY18 from 8.03 in FY15.

Growth Drivers

  • Rising per capita income
  • Organized retail landscape & e-Commerce
  • Favorable demographic trends
  • Changing lifestyles

Market Intelligence in Textiles

A comprehensive database on different segments of the textile industry will be carried out to provide handholding support to the exporting fraternity of the country as well as the policy makers. This Database will provide macro level information on all sectors as well as

  • Provide Real-time Database
  • Suggest remedial measures/ information on change in business environment in domestic segment
  • Augmenting Market Information for export competitiveness and policy

Khadi and Handloom

Weavers are locked in a losing battle with societal indifference and governmental neglect as the sector is abandoned by economic policies. In 2015, Narendra Modi recognised August 7 as National Handloom Day. The growth in power looms, now supplying more than 70% of Indian textiles destroyed the handloom sector. Then there was the illegal encroachment of handloom markets through perfect imitations of handloom products. Subsequent to liberalisation, there was no need for any subterfuge as the removal of import restrictions and deregulation of industries gave a big boost to the power loom and mill sectors.

During the previous decade 5.5 million handloom workers were rendered unemployed or their employment had been reduced due to the displacement of 1386 thousand handlooms (each handloom providing part or full employment to 4 person) by 231 thousand power-looms (each power-loom displaced six handlooms).

The six biggest benefits of handlooms are:

  1. Large premium design choices
  2. High ROI
  3. Employment generator
  4. GreenTech
  5. Ripe for tech disruption
  6. Women’s empowerment

Problems in the sector:

  • Exploitation of workers
  • Unrelenting competition
  • Lack of access to reasonably priced inputs
  • Inadequate government investment
  • Lack of proper documentation and awareness
  • Sanctity of product identity

The story today

In addition to the Handloom Reservation Act, the government brought in handloom marks in 2000, the Geographical Indicator Act in 2003 and most recently in 2015 the All India Handloom Brand in an effort to promote handlooms.

Road Ahead: Time to weave out the knots

There is a need to work on challenges in the form of outdated technology, inflexible labour laws and infrastructure bottlenecks.

  • The government needs to move away from export-specific subsidy
  • Need to align our production with the global consumption patterns
  • Flexibility in labor laws and adequate skilling are required
  • Technology upgradation schemes will help Indian players
  • The consciousness for energy-conservation as well as reducing greenhouse gas emissions must be increased
  • Vocational education must be given
  • Mobilization and organization of weavers and related artisans must be made
  • Focus on building research, design, development and marketing capabilities
  • International Quality Standards need to be maintained

khadi-handloom-india

Textiles & Handloom: Prelims Oriented News

  1. Project ReWeave: An initiative by Microsoft to connect artisans to buyers directly, support weavers in increasing their income and provide training
  2. Technical Textiles: A high technology sunrise sector with functional fabrics that have applications across various industries
  3. Cotton: Kharif Crop that is lightweight, non-perishable, has low weight loss and long duration
  4. Jute: 2nd most important crop; biodegradable fibre; requires large quantities of water; labour intensive; used in manufacture of ropes and packing materials
  5. Unique and treasured fabrics of India – according the GI status: The GI protects the knowledge of the artisans and the cultural heritage
  6. The first cotton mill established in the year 1861 was at Ahmedabad
  7. After independence, the Khadi and Village Industries Commission (KVIC) was established as a statutory body by the Government of India under the KVIC Act 1956.
  8. Indian indigo-dyed cotton ikat was found in a Pharaoh’s tomb
  9. Silk: Queen of Textiles – Produced by insects on the mulberry plant. Sericulture is the rearing of insects for silk

Rural Tourism in India

Types:

  1. Agriculture tourism
  2. Cultural tourism
  3. Nature tourism
  4. Adventure tourism
  5. Food routes
  6. Community eco-tourism
  7. Ethno-tourism

Different Schemes of Government of India

  1. Swadesh Darshan
  2. PRASAD
  3. Special Tourism Zones
  4. e-Tourist Visa Facility

Impact of Rural Tourism

Positives

  • Impact on economy
  • Influence mindset and change perspectives
  • Better connectivity
  • Educate the urban travellers

Negatives

  • Unplanned and urgent development
  • Shift in occupation

 

Ecosystem for Rural Tourism

  • Accessibility, Accommodation, Attractions and Amenities
  • Swagat, Swachchata, Soochna, Suvidha, Suraksha, Sahyog and Samrachana

Promote Rural Tourism

  • Resource Mapping
  • Awareness Creation
  • Skilling the Unskilled

rural-tourism-india

Rural Tourism: Prelims Oriented News

  1. First Tribal Circuit Project under Swach Darshan scheme
  2. The Endogenous Tourism Project
  3. Buddhist Circuit
  4. Eco tourism
  5. First mention of sustainable tourism – Sargent Committee report of 1946
  6. J&K has highest number of tourist sites (26)
  7. Majuli in Assam is the largest river island on the Brahmaputra river
  8. Sunderbans village life has the largest mangrove in the world according to UNESCO
  9. Pochampally, Telangana gets the ‘iconic weaving clusters of India’ by UNESCO World Heritage Sites
  10. Banavasi in Karnataka is famous for wood carving, stone cutting, etc
  11. Raghurajpur in Odisha is famous for Pattachitra painters and Gotipua dance troupes
  12. Govardhan eco village in Maharashtra won UNWTO Ulysses Award for Innovation