Imperative renaissance

When the industrial revolution changed the course of civilisation for the better, the undesirable side effect happened to be the decimation of village and cottage industries, not to mention the disastrous policies of the colonial regime in India that expedited the process. Today, cutthroat competition from the modern industrial sector with advanced production techniques and digital markets have pushed these cottage industries to the edge; without State support their survival would hang in the balance. These village-centric ancestral caste-based professions have a vital role in the rural economy since they provide sustainable livelihoods for millions of people, largely of OBC castes, in the non-farm sector. Reviving these cottage industries is important because it will help in reducing not only rural poverty but also ensure socioeconomic mobility for this class of citizens apart from the existing ‘affirmative action’ in their favour, which basically is a piecemeal measure.

During 2016-17, the Khadi and Village Industries sector as a whole generated employment opportunities for 136.40 lakh persons with a production worth of Rs 42,631.09 crore and sale amounting to Rs 52,138.21crore. The top five Indian cottage industries are said to be cotton and silk weaving, carpet making, leather industry, metal handicrafts, and small food processing businesses. The annual report (2016-2017) of The Central Cottage Industries Corporation of India Ltd. says that the total foreign exchange earnings from cottage industries were Rs 3.201.35 lakh crore both in terms of exports and sales. However, in the absence of supportive studies, it is difficult to conclude that the above performance of the sector has necessarily uplifted the communities engaged in these occupations. The 2021 National Statistical Office (NSO) report on migration in India reported that intra-state migration accounted for 87.5 per cent of total labour-related migration between 2020-2021, while inter-state migration was 11.8 per cent. The rural-to-urban migration, though mostly by the SC/ST farm labourers, also includes a significant portion of people from OBC communities whose original family occupations were such as handlooms, potteries, blacksmiths, bamboo products, rope making, carpentry, oil-pressing by ghanis, handicrafts in wood and ivory carving, and toy making, etc.

It is important to revive the traditional cottage industries to keep at least a part of the rural population from the miseries of migration and eventual estrangement from their original niche occupations. Besides, it is also our national responsibility to preserve the world-famous skills of Indian artisans and craftsmen of cottage industries. According to Valza’s global export data in 2023, India tops the list of exporters of cottage industry goods in the world, followed by China and the United States, which underscores immense possibilities for growth of the sector. However, the challenge is the assimilation of cottage industries in today’s fast-growing digitised economy while at the same time ensuring fair returns for the artisans and providing avenues for skill upgradation. The issues with cottage industries are mainly lack of technology, credit flow, marketing, and exploitation by middlemen. But the advantages are: local sourcing of material and manpower, low energy consumption, sustainable production methods, meaningful employment, and a worldwide demand for unique handmade products. Besides, cottage industries play a vital role in women's empowerment in rural India.

The ‘Cottage Industry’ has not been defined under the Khadi and Village Industries Commission Act, 1956. It is covered under the village industry, vertical of the Khadi and Village Industries Commission (KVIC), classified into seven groups: Agro Based & Food Processing Industry (ABFPI), Mineral Based Industry (MBI), Wellness & Cosmetics Industry, Handmade Paper, Leather & Plastic Industry (HPLPI), Rural Engineering and New Technology Industry (RENTI), Service Industry and Textiles Industry. Prime Minister’s Employment Generation Programme (PMEGP) facilitates credit and subsidy while a cluster-based scheme named Scheme of Fund for Regeneration of Traditional Industries (SFURTI) provides improved equipment, common facilities centres, business development services, training, capacity building, and design and marketing support through exhibitions. The other schemes are Khadi Vikas Yojana (KVY), Gramodyog Vikas Yojana (GVY), and Coir Vikas Yojana (CVY). Additionally, the Ministry of Textiles has schemes like the National Handloom Development Programme and Raw Material Supply Scheme which provide infrastructural and financial support. An exclusive focus on traditional cottage industries run by specific Castes is conspicuous by its absence. Similarly, state support is largely demand-driven with issues concerning outreach of the government agencies and access to the beneficiaries.

According to the MSME ministry’s data for the whole of India, under PMEGP in 2022-23, Rs 2,722.39 crore margin money was released for 85,167 units set up, and an estimated 6,81,336 people were employed. Under the SFURTI scheme, from 2015-16 to November 30, 2023, a total of 2,09,670 artisans were assisted with 358 functional centres. Under the Kumbhar Sashaktikaran Programme and Honey Mission of GVY, from 2017-18 to 2022-23, a total of 1,03,760 potters and 18,631 beekeepers were benefitted. Under Khadi Vikas Yojana 2022-23, a total of 4,98,498 weavers were assisted in various ways, while under the Coir development scheme, 17,054 people received assistance. These absolute figures, apparently, are a pittance vis-à-vis the number of people working in cottage industries and the volume of business. They do not necessarily reflect the impact of the schemes on the lives of the artisans and craftsmen in terms of both inter and intra-generational mobility, absent a detailed comparative study. A third-party evaluation of the performance of the existing schemes is necessary to address the gaps between the objectives and the implementation.

Village and Cottage industries are different from MSMEs; firstly, because they are caste-based skill-driven occupations and secondly, they are not scalable. A special approach is necessary to reinvigorate the cottage industries. To begin with, the focus needs to be on caste and its association with the cottage industry. Alongside the caste census, we need an occupational census as well to identify the communities associated with the cottage industry. More than the numbers, the principle is of paramount importance since it concerns preserving the traditional skills and uplifting such OBC castes which solely depend on their skills for sustenance.

Cottage industries need to be integrated into modern business models focussing on global markets. For example, the Handicrafts, Gifts & Decoratives business in the world is estimated at USD 235 billion worth, of which China accounts for USD 71 billion whereas India is only at USD 3 billion. We need to develop an India-specific integrated approach to attract leading importers and international stores. For example, lac and toy manufacture in Meerut, carpet weaving in Mirzapur and Benares, silk weaving in the villages of Murshidabad and Malda, Metalwork in Boidrajpur (Bihar), Santipur and Kharagpur, lungis and sarees of Melapalayam, and glass bangles of Fatehpur and Firozabad have global demand for their unique skills and craftsmanship. It is relevant to mention that, unlike India, many countries including China have wholesale trade Marts for cottage sector exports. Finally, clubbing the cottage industries sector with tourism is essential because it helps to explore and develop new local and international markets and to boost demand.

The writer is a former Addl. Chief Secretary of Chhattisgarh. Views expressed are personal