development with sustainability (a study of small scale ... · they are handicapped with scarce raw...

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Development with Sustainability

(A Study of Small Scale Sector with Special Reference

to Handicrafts and Handlooms)

Vyshak A, Athira Vijayan and Prof. Anandavalli T

Department of Commerce and Management, School of Arts and Sciences

Amrita Vishwa Vidyapeetham, Amritapuri, Kerala, India

[email protected]

[email protected]

[email protected]

Abstract-- “Sustainable development is development that meets the needs of the present, without compromising the ability

of future generations to meet their own needs”.

Handlooms and Handicrafts, a traditional sector in India has lost its significance slowly in this current lifestyle of the

people. These sectors provide job opportunities for millions of people living in the backward regions. Their skills and

abilities are sustained from one generation to another. Weavers and artisans are blessed with the art of making

products that are eco-friendly, durable and sustainable in nature.

The aim of this paper is to assess the awareness of the people regarding declining stage of this sector. And we

identified that there is a continuing interest to use these products. The study conclude with a optimistic note that the

position of these sectors could be re-established and re-vitalized in our economy effectively through appropriate

strategies in a sector specific context.

Key words: - sustainable development, handicrafts, handlooms, declining, awareness etc.

I. INTRODUCTION

The handlooms and handicrafts sector has a unique place in our economy. The strength of these sectors lies in

its uniqueness, flexibility of its tradition.

The contribution of handloom and handicrafts is significant in terms of output and employment. It contributes to

about 14%of total production of textile industry. It is the second largest provider of livelihood for forty three

lakh people. As India‟s oldest cottage industry, it is the lifeline of our cultural heritage.

Deen Dayal Hath Kargha Protsalian Yojana

National Centre for Textile Design

Handloom Development Culture and Quality Dyeing Unit Scheme

Development of these sectors became an essential part for the sustainability of this economy. Nowadays, people

are running behind modern and machine-made products which caused a decline in demand of these sectors. A

lot of weavers and craftsmen are associated with these sectors. It is the most important sector which provides a

means of living for the people living in backward regions. It creates employment opportunities for rural area.

Sustainable development of these sectors is another key for the development of backward economy in our

country. Poor and uneducated people are underestimated in our country but their skills in designing of handicraft

products and handloom production is still considered an exquisite talent. Many foreigners from Germany, USA,

Netherlands, and France etc. are interested in buying these products. They appreciate our ethnic culture. But the

demands for these products are declining in our country itself.

International Journal of Pure and Applied MathematicsVolume 119 No. 16 2018, 1323-1335ISSN: 1314-3395 (on-line version)url: http://www.acadpubl.eu/hub/Special Issue http://www.acadpubl.eu/hub/

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The products from these sectors are sustainable in nature. It possesses great sustainability as it can be preserved

for a long time. They are not harmful for the people and cannot be destroyed easily. They are eco friendly in

nature and its sustainability by developing and bringing back its demand is important for our country.

II. STATEMENT OF THE PROBLEM

This study is undertaken to analyze the problems faced by Indian artisans and weavers in the field of handicrafts

and handlooms. We also focused on sustainability of the environment through the use of these products and

development of the nation as well. It also describes about their inability to access in the expo market and lack of

awareness about the promotional schemes available.

III. METHODOLOGY

Using stratified random sampling method primary data is collected from 200 people from various parts of the

country through online surveys and telephonic interviews with the managers of Lifestyle94 India and Legendary

Global merchandising export-buying house. Secondary data were also collected from websites, government

reports, various journals etc.

IV. REVIEW OF LITERATURE

The earth today is burdened by increasing the population and its consequent impact n human environment. The

1983 UN General Assembly which created the World Conference on Environment and Development ensured

that priority should be given to world‟s poor. The United Nations Conference on Environment and Development

also stressed the need to maintain healthy practices for achieving sustainable development. The socio-economic

pillars for sustainable development are not to be sidelined. (Dr. Saroj Kumar Singh, 2016).

We are in need of new user practices, policies and cultural meanings(S K Mahapatra and Radha K C, 2017)

Vanaja Menon in her paper “A study of the marketing of handicraft products by cooperation‟s in Kerala(1999)”

states that the handicrafts sector is largely a household based industry carried out by the contribution of family

members.

Hilka Pelizza Vier Machado (2016), focuses on the importance and growth of small businesses in the paper

“Growth of small businesses: review and perspective of studies”. Growth is often the respect of good

administration of resources and capacities: administration of the origin of resources, capacities and learning on

accumulation methods and generation of sustainable projects, coupled with the method of accessing the

resources. There may also be a discontinuity with employment generation and technology advancement. The

article states that further studies should be developed for a contextual and comprehensive explanation.

It is also relevant to note the evidence of effective marketing through social media. It is now a cost effective

solution to reach various demographic segments. (Amrita S M, Mohan R, 2016).

A study by Parala Venkata Sree Vyshnavi and Suja S Nair on „Handloom Sector in India‟ (2017) gives a

detailed picture of the handloom sector in India and the various initiatives taken by the government. It is

necessary to provide awareness on the same.

V. SMALL SCALE INDUSTRIES AND ITS GROWTH

Government of India had introduced many policies and initiated various services to develop the economic

growth through more emphasis on small scale industries and its growth overtime. Small scale industries

positively contributed to India‟s GDP. It provided additional employment opportunities to many people. It

International Journal of Pure and Applied Mathematics Special Issue

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focused to provide more equitable distribution of national income. It acted as a helping hand to the large scale

industries and facilitates them in work.

Reserve Bank of India uses an expanded definition of small scale industries which include: (i) Small scale

industrial undertaking which are engaged in the manufacturing, processing and preservation of goods in which

the investment in plant and machinery not to exceed Rs. 5crore. These would include units engaged in mining or

quarrying servicing and repairing of machinery. (ii) Tiny enterprises whose investment in plant and machinery

do not exceed Rs.25 lacs. (iii) Power looms. (iv) Traditional industries which require high workmanship and

techniques and also village and household industries producing common goods of consumption predominantly

by using simple tools. (v) The decentralized and informal sector like handlooms and handicrafts. (vi) The

industry related to services/ business enterprises. (vii) Food and agro-based industries. (viii) Software industry.

SSI provides many employment opportunities using available skills and little capital to rural households. They

are mostly labour-intensive. Operational adjustments are easier in small scale units to meet the seasonal demand

of production in various sectors. Small scale industries provide status of independent entrepreneurship to a large

number of people in our country.

They are handicapped with scarce raw materials, lack of provision in credit and finance, low technical skills and

managerial abilities. It is therefore essential to develop an overall approach to strengthen the competitive

abilities of these sectors by removing their disabilities.

VI. FACTORS AFFECTING HANDICRAFT AND HANDLOOM INDUSTRY

Handloom and handicrafts industries are considered as the second leading sector in the economy. This

provides greater sustainability and growth for the small scale industries. Now they are currently

declining. Rising trends in fashion industries, competition from cheaper machines, scarcity of physical

capital etc. are some reasons for its declining. There is a great demand of hand printed textiles,

handmade products like choir products, brassware products, Christmas ceramic gifts and more. These

products have great demand in the global market due to its style, traditionalism, heritage, ethnicity

and culture. Rajasthan, Assam, Haryana, Andhra Pradesh, Kerala, Tamil Nadu, Kolkata are the

leading manufacturing states. Even though these sectors are unorganized, the growth and development

of small scale sectors is crucial for the improvement in GDP. The greatest strength of these sectors is

innovation, designs and creativity of the weavers and artisans. At this declining stage also weavers

and craftsman occupies an important place in the hearts of people.

These sectors are even famous from the Indus valley civilisation period. It provided a lot of

employment opportunities for the people living in rural areas. This will also help in the rural

development of the nation. Handloom and handicrafts sectors are labour-intensive, decentralized and

cottage based industries. According to the Economic Survey 2002, 23 million people were engaged in

this sector. It goes on to increase to 65.72 lakh during 2005-2006 and recorded 75.17 lakh people

during 2010-2011. It has no negative impact on sustainability and it help to make footprints in the

global markets.

Growing demand for artificial machine made products affected these industries and stopped

its growth. No innovative methods and technology advancement lead to its stagnation. Increase in

manufacturing expenses, wastage of resources and improper utilisation of raw materials also affected

their growth.

95%of handlooms in the global market have been produced in India. Introduction of New

Textile Policy of 1985 increased the use of power looms which had a negative effect in the handloom

industry. It showed a huge decline in their growth during 2010-2013. However, it showed a slight

increase in its growth from 2015-2016 according to Handloom Export Promotion Council. Lack of

market demand, future uncertainty, less investment both national and international affected these

sectors.


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VII. GROWTH PROSPECTS

Handicrafts Export Data by Export Promotion Council of Handicrafts

ANALYSIS: From the above chart from the FY1986-1987 to FY2005-2006 the export of Indian handicrafts were

growing at a slow pace. But still it was positively contributing to the GDP of the nation and helping in economic

development. But all of a sudden in FY 2009-2010 the demand fell rapidly which affect ted their growth from

past few years. After that it increased slowly till FY 2012-2013. From FY 2013-2014 to FY 2016-2017 the

export of handicraft showed a satisfying growth rate. It was preferably showing a constant growth with not

much change from past five years. Still the demand in the foreign market is positive for the handmade goods.

Export of Handlooms by Ministry of Textiles

ANALYSIS: According to the data presented by the Ministry Of Textiles, there is not much improvement in the

market share of handloom industries. From FY 2009-2015 it had a slow growth. This can be clearly understood

as the demand of handlooms got decreased due to its competition with power loom industries. In 2016 it tried to

increase its market share better than past few years but not as much as expected. So, Ministry Of Textiles

assumes that by FY 2023 there will be a drastic improvement in the hand loom sector as the production and

growth of handloom products will get increased.

VIII. DATA ANALYSIS

SWOT ANALYSIS OF HANDLOOM AND HANDICRAFT SECTOR

STRENGTHS

Low capital cost and investment

Traditionalism and ethnic culture

Long durability

Environment and user friendly

Government support at the initial stages

Easy availability of raw materials

Highly skilled labours

Low barriers for new entry

WEAKNESS

Lack of professionalism

Not much change in technology and design

Survival on government subsidies

Lack of promotional awareness

Don‟t have great access to foreign buyers and

markets

Low yield

Lack of infrastructure and communication

facilities


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OPPORTUNITIES

Large demand for these goods in the foreign

market

Large employment opportunities

sustainable development of the nation

Rural development

Product innovation and diversification

Trust and capacity building

Women empowerment

Development of domestic and international

tourism sector

Growth of e-commerce in this industry

THREATS

Decrease in the demand of these products

Decline in market share

Change in lifestyle of people

Competition from power loom and machine

made products

Competition of similar products

PEST ANALYSIS

POLITICAL ASPECTS:

The industry will not gain success and good reputation if it does not follow proper government policies to

consider it as legal and authorized company. They should take care of political factor before implementing

strategies. Tax policy, employment laws, political stability, trade and tariff restrictions are some of the political

aspects that the company must take care of.

Here, the government should implement beneficial policies for the sustainability of both the sectors.

ECONOMIC ASPECTS:

The economic stability of the nation is dynamic. Every organization must provide proper attention to the

economic stability. Competition, market condition, general economic conditions etc. has to be ascertained.

Interest rates, inflation rates, exchange rates, economic growth are some aspects.

The economic condition of the nation will affect the industries directly, for example high inflation rate will

increase the cost of production and will reduce the profit margin of the company.

SOCIO-CULTURE ASPECTS:

Social and cultural factors are very important where the business organisation operates. They operate in

compliance with the social sub systems. They have to fulfil the social responsibility to earn good reputation and

trust among the public. It have to take care of the need of the individuals as people belongs to different regions,

religions etc. population growth, age distribution, consumer behaviour, religion and culture are some aspects.

The changes in lifestyle of the people affect the demand for the goods produced by handlooms and handicrafts

industries. Power looms and machine made goods had a serious impact in the production process.

TECHNOLOGICAL ASPECTS:

To improve the efficiencies and effectiveness of these industries they have to improve their technical skills and

should be made aware about the modern innovative technologies to increase the production.

From the past few years lot of advancement in technologies positively affected the textile and craft industry but

also decreased the handmade demand of these goods and employment opportunities in these sectors got

decreased.


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SURVEY ANALYSIS AND INTERPRETATION

Table I: whether people love to purchase handicrafts and handlooms

options No. of responses

% of responses

Yes 180 90

No 20 10

Total 200 100

Fig 1: Love for the purchase of handicrafts and handlooms

The above data shows that 90% of people still love to purchase handlooms and handicrafts products among the

200 respondents.

Table II: different handloom products people love to purchase

options No. of

responses

% of

responses

Sarees 85 43

Shirts 64 32

Dhothis 18 9

Shawls 21 10

Others 12 6

Total 200 100

Fig 2. Different type of handloom products

Among 200 respondents participated in the survey and in that 43% purchases sarees, 32% purchases shirts,

9%dhothis, 10% shawls and 6% purchases other products like curtains, carpets, bed sheets, floor mats etc.

90%

10%

No. of responses

yes

no

01020304050

sare

es

shir

ts

dh

oth

is

shaw

ls

oth

ers

4332

9 10 6

No. of responses


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Table III: Different handicrafts products people love to purchase

options No. of responses

% of responses

Home

Accessories 82 41

Fashion

Accessories 60 30

Religious Accessories

43 21

Garden

Accessories 15 8

Total 200 100

Fig 3. Different Handicraft products

In the above data 41% of people love to purchase home accessories, 30% purchase fashion accessories, 21%

purchases religious accessories and 8% among 200 respondents love to purchase garden accessories from

handicrafts sector.

Table IV: Reason behind the purchase of handlooms and handicrafts options No. of response % of responses

Design and Beauty 72 36

Ethnic Culture 55 27

Quality of the Product 47 24

Price 26 13

Total 200 100

Fig 4: Reason behind purchase of handlooms and handicrafts

4130 21

8

No. of respondents

Price

Quality of the …

Ethnic Culture

Design and …

13

24

27

36

No. of repondents


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In the above diagram the respondents mentioned the reason behind the purchase of handloom and handicrafts

products which says 36% of people purchase because of its design and beauty, 27% purchase the products

because of its ethnic culture, 24% purchase due to its quality that can be sustained for a longer period and 13%

of people says the purchases are made on looking at the price factor.

Table V: Awareness about the declining stage of these industries

options No. of responses % of responses

Yes 168 84

No 32 16

Total 200 100

Fig 5: Awareness about the declining stage

From the survey collected among 200 respondents 84% people are aware about the declining stage of the

handlooms and handicrafts industries whereas 16% are not aware about it.

Table VI: what people would like to say about development of the economy through handicrafts and handlooms industries?

options No. of responses % of responses

It helps in promoting the skills and abilities

of backward society

74 37

It provides many

employment

opportunities for the people

68 34

It helps in the export of these products to

improve GDP

58 29

Total

200 100

84%

16%

No. of respondents

Yes

No


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Fig 6: Development of the economy through handicrafts and handlooms

The data shows that 37% of these sector helps in promoting the skills and abilities of the backward society, 34%

help in providing employment opportunities and 29% of people says that export of these goods to global

markets will improve the GDP.

Table VII: re-establish or re-vitalise the demand in the market for handloom and handicrafts industries

Options No. Of responses % of responses

Yes 177 88

No 23 12

Total 200 100

Fig 7: re-establish and re-vitalize the demand in the market

88% of the people among 200 surveyed feels that the demand for these industries can re-establish in the market

whereas 12% feels it cannot be possible as the lifestyle, tastes and preferences, government support etc. will

depend.

Table VIII: challenges faced by handlooms & handicrafts sector

% of

responses

No. Of

responses Options

No. Of

responses

% of

responses

16 33

Lack of

Accessibility

to Global Markets

35 17

20 39

Lack of Awareness

about Latest

Market Trends

42 21

export of these products and …

providing employment …

promoting the skills and …

29

34

37

88%

12%

no. of respondents

Yes No


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11 22

Improper

Planning

27 14

13 27

Insufficient

Budgets

18 9

14 28

Lack of

Innovative

Technologies

41 20

10 19

Improper

Infrastructure

23 12

16 32

Less

Government Supports

14 7

100 200 Total 200 100

Fig 8: Challenges faced by handicraft and handloom industries

In the above table among 200 respondents 7% (handicrafts) and 16%(handlooms) feels less government support,

12%(handicrafts) and 10%(handlooms) feels improper infrastructure, 20%(handicrafts) and 14%(handlooms)

feels lack of innovative technologies, 9%(handicrafts) and 13%(handlooms) says insufficient budgets,

14%(handicrafts) and 11%(handlooms) feels there is improper planning, 21%(handicrafts) and 20%(handlooms)

feels lack of awareness about latest market trends and 17%(handicrafts) and 16%(handlooms) feels lesser

accessibility to global markets etc. are some of the challenges faced by Indian handicrafts and handlooms

industries.

IX. METHODS OR STRATEGIES SUGGESTED:

Giving discounts and offers for the sale of products

Government should spread knowledge and create awareness campaigns about the importance of these

sectors

Using social medias as a promotion vehicle

Introducing handlooms in CSD canteens

Exhibitions, fests and expos must be arranged so that people can have greater awareness about the

wide verities of the products

Providing incentives for the production these products in the small scale units and removal of levied

taxes

Making aware about the quality of the products to the customers

Rather than various retailers people should directly these type of goods from weavers and artisans to

provide them with greater markets

Government should also take appropriate steps to protect the well-being of these people skills and

abilities

Influence near and dear ones about these products

05

10152025

Acc

essi

bili…

Lack

of …

Imp

rop

er …

Insu

ffic

ien…

Lack

of …

Imp

rop

er …

Less

…

Handicrafts Handlooms


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Government should provide more subsidies and increase the export of these products for the nations

development

Exhibitions in areas of large gatherings

More centres for buying and selling of these products should be open so that it can be easily

accessible for the general public rather than focusing only on the tourist‟s spots

X. CONCLUSION:

After analyzing the data collected for this study, it can be concluded that the people are aware about the

declining stage of these sectors. It is very much clear that the handmade products like crafts and apparels are

still preferred by the customers. They still believe that the demand for these industries will increase in the

market if successive measures are taken to promote their products at the right time. The study also shows that

the interests of people towards the conservation of environment by using these types of products are friendly and

have greater sustainability in the development of the economy. As these sectors provides a great opportunities

for employment for many. In this current scenario people are running behind new and modern products which

are mostly harmful that deplete the environment. Resources are getting wasted at maximum behind the

luxurious comforts and modern lifestyle. Through this study we came to know that there are still many people

who prefer such eco-friendly products and promoting sustainable development through its usage. They still

believe that our ethnic art and culture must be preserved rather than running behind modern development. Thus

handlooms and handicrafts industries are great examples of development with sustainability.

XI. REFERENCES

1. www.hepcindia.com

2. www.dnaindia.com

3.

http://www.researchgate.net/publication/31983451_handloom_sector_in_india_a_literature_review_of_govern

ment_reports

4. http://data.conferenceworld.in/MIMT/P292-298.pdf

5. http://oaji.net/articles/2016/1170-1463510666.pdf

6. http://shodhganga.inflibnet.ac.in/bitstream/10603/31920/10/10_chapter%202.pdf

7. www.infodriveindia.com

8. www.slideshare.net

9. www.epch.in

10. www.scribd.com

11. www.studymode.com

12. www.tradeindia.com

13. www.financialexpress.com

14. www.2thepoint.com

16. S K Mahapat and Radha K C, “Paris Climate Accord: Miles to Go”, Journal of International Development,

vol29, n0.1.pp.147-154, 2017

17. Amrita S M, Mohan R, Application and Social Media as a marketing promotional tool- a review, in 2016

IEEE International Conference


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