National   

ADB loan to revive khadi industry

NEW DELHI: The Asian Development Bank (ADB) is extending a loan of $150 million to India to help revive the khadi, the widely-revered handspun and handwoven cloth, which has not developed to desired levels owing to poor production and marketing techniques.

According to an ADB statement here, a $ 2-million grant will also be provided by the Japan Special Fund through the Manila-based multilateral institution to support the implementation and monitor the progress of the loan-funded reform package for the khadi industry.

It is expected to bolster employment opportunities in India, particularly in the rural areas which account for 73 per cent of the country’s poor. The 11th Plan document has laid great stress on khadi production, mainly owing to the huge employment prospects for women and minorities.

Although the khadi production was originally promoted by Mahatma Gandhi for rural self-employment, the industry’s sales have nearly stagnated and fallen behind the overall strong market demand enjoyed by the textile market. In contrast, the country’s overall textile sector has grown tremendously with the adoption of modern technology, branding, and strong marketing.

In fact, khadi has been isolated from the evolving consumer taste due to ageing equipment, inconsistent product quality, lack of professional expertise and funding, and lack of unity and resolve within the industry to adjust to changing market trends. As a result, the product accounts for less than one per cent of the country’s textile market.

The production of khadi being organised by non-government bodies while the State agency Khadi and Village Industries Commission (KVIC) provides policy, technical, and marketing support with financial subsidies from the Centre to promote the product.

The loan, to be released in four tranches over a three-year period, is aimed at revitalising the khadi industry by establishing a policy reform and implementation framework.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Introspect, Congress tells Opposition
13 militants killed
Police raid in Azamgarh
No interim relief in Amarinder case
Agartala blasts: 3 Bangladeshis arrested
Cabinet approves Rs. 4.5-lakh income ceiling for creamy layer
30 per cent interim relief for newspaper employees
Farmers protest pullout
Russia hopeful of deal for more reactors
I faced embarrassing questions: PM
Central forces for Sabarimala
Protest in Patna
Anganwadi workers seek Rahul’s help
System to enhance endurance of diesel submarines
Rethink financial sector reforms: Karat
ADB loan to revive khadi industry
Cabinet nod for revised blindness control programme
R.S. Lodha passes away
12 new Central varsities
UGC panel for 70% pay hike for teachers
Nod for 2,000 senior posts in armed forces
40 houses torched during clashes in Assam
Palestinian leader coming

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu