At WeaverStory, where we primarily focus on handloom textiles, we hope the Finance Minister addresses some of the critical challenges faced by this sector. The handloom industry often suffers from conflicting incentives provided to the powerloom sector. This overlap makes it increasingly difficult to engage more artisans in handloom weaving, which is already a dying craft. To revive and sustain handloom weaving, there is an urgent need for an ongoing ecosystem of support. Access to working capital should be made easier for weavers. Currently, artisans often need to sell their existing stock before producing more, creating bottlenecks that hinder growth.Additionally, prior to the introduction of GST, the handloom sector was largely untaxed. Even with the current 5% GST, the impact on handloom weavers has been significant. Handloom and powerloom should not be treated at the same level. A more favorable tax structure, such as removing GST from handloom products or increasing the tax on powerloom items, would be a step in the right direction.
Other challenges include rising input costs, particularly for materials like silk and cotton yarn, which are predominantly used by large mills and not readily available for handloom artisans. The post-lockdown surge in raw material costs has added immense financial stress, which consumers often do not fully understand or appreciate. Support for stabilizing raw material pricing or subsidies for essential materials would greatly benefit the sector. Furthermore, the handloom sector doesn’t rely on electricity like powerloom factories, yet much of the incentives in the electricity domain favor the latter. Incentives should be extended to those promoting handloom, especially for organizations and artisans participating in international exhibitions.
Hence, the budget should prioritize policies that protect and nurture handloom weaving, ensuring the craft continues to thrive and contributes to India’s rich heritage.
Inputs for Global Entrepreneurs by Nishant Malhotra, Founder of WeaverStory
