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Contributing to Economic Growth

Tirupati in Andhra Pradesh and Raghurajpur in Odisha have become the first two chosen for a project to link textiles and tourism together.

Why is Raghurajpur in Odisha significant?

1. This craft village is located near the temple city of Puri in Odisha.

2. It is famous for its pattachitra, palm leaf art, traditional stone carving and idol making with papier-mache.

3. It is perhaps India’s only village where every household is involved in producing handicrafts.

4. The village hosts Indians, as well as foreigners and tourism, has given a new identity to this village.

How important are textiles and handicrafts sector?

1. The handloom and handicrafts sector together provide about 111 lakh employment both in the organized and unorganized sector.

2. The textile industry contributed 7% of the industry output, 15% in export earnings and over 2% in GDP of India in 2017-18.

3. Overall textile exports during the fiscal year 2017-18 were US$39.2 billion.

4. The industry is now on the way to become the second largest manufacturer and exporter in the world after China.

5. By linking the textiles and handicrafts, the traditional sector got a facelift.

6. It is also helping this sector to contribute more to economic growth by being a key source of employment.

What are the challenges faced by the Textile Sector?

1. Manufacturing costs of the textile sector in India are higher due to the fragmented structure of the industry and the presence of MSMEs.

2. Duty disadvantage of up to 9.6% in important consumer markets like the EU is a major challenge as compared to competing countries like Bangladesh, Sri Lanka, Turkey and Pakistan, which have zero duty access.

Which are the measures taken by the government?

Handicrafts:

1. It is mainly an un-organized and diversified sector with an estimated 70 lakh artisans practicing 32 broad crafts throughout the country.

2. Approximately 22.85 lakh artisans have been trained under Pahchan initiatives to organize and standardize Indian handicrafts.

3. 35 crafts have been identified as endangered crafts and 92 crafts have been registered under the Geographical Indication Act.

4. There is a scheme of handicraft mark to establish authenticity of handmade products.

5. There is a direct marketing portal for handicrafts artisans to provide direct market access facility to genuine artisans. Any handicraft artisan registered under Pahchan can use this portal for marketing their products.

6. The interest of cotton farmers being protected through Minimum Support Price (MSP) as it is an important component for the textile and handicrafts sector. MSP has been increased for 2018-19 by 28% and 26% for Medium Staple Cotton and Long Staple Cotton respectively.

Textiles:

1. There is a package for garments and made up sectors. It offers Rebate of State Levies (RoSL) and labor law reforms and relaxation of Section 80JJAA of Income Tax Act.

2. Products such as fiber, yarn, and fabric in the textile value chain are being strengthened and made competitive.

3. Assistance is being provided to exporters.

4. Interest equalization rate for pre and post-shipment credit for the textile sector has been raised from 3 to 5%.