Tamil Nadu - Chennai   

“Traditional industries need government support”

CHENNAI: Traditional industries need government support during the current economic downturn. While the Central government’s stimulus packages have given them some respite, the State government should also intervene to avoid large-scale unemployment, M. Rafeeque Ahmed, chairman, Federation of Indian Chambers of Commerce and Industry, has said.

Delivering the welcome address at the first conference-cum-exhibition of traditional industries, he said traditional industries such as textiles, handicrafts and leather were mainly lifestyle products. These labour-intensive units also depended on exports to flourish. The current crisis had cut down demand all round and was threatening the livelihood of the artisans and labourers.

Habib Hussain, who recently took charge as chairman of the Council for Leather Exports, said all labour-intensive industries needed some hand-holding during difficult periods. If India created “plug-in” infrastructure, with which units could be established in a short while, the industry could become an important player in the global market when the economy recovered.

India’s share of $3.5 billion out of the total global trade of $116 billion in the leather industry could be increased significantly if the government as well as entrepreneurs adopted pro-active measures.

S. Selvaraj, general manager, National Bank for Agriculture and Rural Development (NABARD), suggested that both large industries and the government use the mechanisms like self-help groups to improve marketing and branding of products by artisans and rural labourers.

Industries Secretary M.F. Farooqui said the State government was supporting these traditional industries. The government had allocated 10 acres for setting up a footwear design and testing laboratory at Irungattukottai. The government was also bearing 15 per cent of the cost of the Common Effluent Treatment Plants for leather units.

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