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National Handloom Development Corporation

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National Handloom Development Corporation
NameNational Handloom Development Corporation
Formation1980s
TypePublic Sector Undertaking

National Handloom Development Corporation is a central public sector undertaking established to promote the handloom sector through marketing, financing, and capacity building. It operates within a policy framework shaped by Ministry of Textiles (India), influenced by schemes such as the Integrated Handloom Development Scheme and interacts with institutions like the Office of the Development Commissioner for Handlooms, Small Industries Development Bank of India, Reserve Bank of India and regional handloom cooperatives. The Corporation engages with state bodies including the Government of West Bengal, Government of Assam, Government of Andhra Pradesh and national bodies such as the National Institute of Fashion Technology, Export Promotion Council for Handicrafts and Textiles Committee.

History

The Corporation was created amid policy reforms following recommendations from committees like the All India Handloom Board and reports by the Planning Commission and National Sample Survey Office, responding to crises noted during events like the post-1991 liberalisation era and earlier commodity distress in regions such as Vishweshwarapuram and Mirzapur. Early collaborations included memoranda with Handloom Weavers’ Service Centres, Cooperative Societies of India and partnerships with the Indian Council for Cultural Relations for export promotion. Over decades it adapted to initiatives launched under the National Rural Employment Guarantee Act and linked with missions like the Make in India campaign and Digital India for market access.

Mandate and Objectives

The Corporation’s mandate connects statutory aims articulated by the Ministry of Textiles (India), directives from the Cabinet Secretariat (India), and targets set by the National Handloom Census. Core objectives include improving market linkages through platforms like the Handloom Mark and national expos coordinated with the Central Cottage Industries Emporium, enhancing access to credit via schemes administered by the NABARD and SIDBI, and facilitating overseas promotion through offices coordinated with the Ministry of Commerce and Industry (India) and consular networks in cities such as London, New York City, Dubai and Singapore. It prioritizes artisan welfare consistent with judgments of the Supreme Court of India and guidelines from the Ministry of Labour and Employment (India).

Organizational Structure

Headquarters interface with regional units that liaise with state directorates such as the Directorate of Handlooms and Textiles, Odisha and institutions like the Khadi and Village Industries Commission. The board includes nominees from the Ministry of Textiles (India), representatives from the All India Handloom Board and experts from academic bodies such as Indian Statistical Institute, National Institute of Design and Jawaharlal Nehru University. Operational divisions coordinate procurement, quality control, marketing and training, collaborating with laboratories like the Bureau of Indian Standards and inspection bodies under the Textiles Committee and export facilitation through the Federation of Indian Export Organisations.

Programs and Initiatives

Initiatives have ranged from marketing campaigns at fairs like the India International Trade Fair and partnerships with e-commerce platforms and retailers such as Fabindia, Tata Group retail initiatives and boutique exports to Galeries Lafayette. Capacity building has involved training with the National Institute of Fashion Technology, design residencies linked to the National Institute of Design, and skill certification aligned with the National Skill Development Corporation and Craftmark. Collaborative projects addressed supply-chain gaps with NABARD credit linkage programs, microfinance models involving Reserve Bank of India guidelines, and pilot social security linkages with schemes of the Employees' Provident Fund Organisation and Employees' State Insurance Corporation.

Financials and Funding

Funding streams combine budgetary allocations aligned with approvals from the Ministry of Finance (India), project-specific grants under the Integrated Handloom Development Scheme, internal accruals from sales at emporia like the Central Cottage Industries Emporium and export revenues negotiated through the Export Promotion Council for Handicrafts. Financial oversight involves audits by the Comptroller and Auditor General of India and compliance reporting per standards of the Ministry of Corporate Affairs (India), with working capital relationships maintained with banks such as the State Bank of India and Punjab National Bank and refinancing arrangements through SIDBI and NABARD.

Impact and Outreach

The Corporation’s programs have supported clusters in regions including Bengal, Karnataka, Tamil Nadu, Gujarat, Assam and Nagaland, promoting designs showcased at venues like the Kala Ghoda Arts Festival and India Art Fair. Outreach has targeted artisan households identified in the National Handloom Census and promoted linkages to urban retail through collaborations with entities such as Dharavi rehabilitation initiatives, city-level craft hubs like Rangpur markets, and international buyers at exhibitions organised by India Trade Promotion Organisation. Evaluations cite increases in market access, participation in schemes overseen by the Ministry of Textiles (India), and participation in export consignments facilitated by the Federation of Indian Export Organisations.

Challenges and Criticism

Observers from institutions such as the Centre for Policy Research, Institute of Economic Growth, Centre for the Study of Developing Societies and commentators in publications like The Hindu, The Indian Express, Business Standard have highlighted issues including bureaucratic delays traced to procedures prescribed by the Ministry of Textiles (India), limitations in scale relative to needs documented by the National Sample Survey Office and constraints in competing with large textile manufacturers in markets served by Aditya Birla Group and Arvind Limited. Critiques include concerns about audit practices influenced by the Comptroller and Auditor General of India, challenges in beneficiary identification relative to the National Handloom Census, and gaps in digital adoption despite policies such as Digital India and platforms promoted by the Ministry of Electronics and Information Technology (India).

Category:Textile industry in India