Articles | In-Depth Analysis

ANALYSIS OF RAJASTHAN BUDGET 2023-24 FOR HANDLOOM AND HANDICRAFT SECTOR

Published: April 10, 2023
Author: TEXTILE VALUE CHAIN

Author- NIKITA SACHWANI

Designation/ Affiliation- Research Scholar, Department of Garmant Production and Export management, Government Arts Girls College, University of Kota, Kota

 

Rajasthan Budget, announced on 10 February, 2023 presented answers to the expectations of the state for coming financial year 2023-24. Many announcements have been made for benefit, development and upgradation of Handloom and Handicraft sector including the traditional art forms native to the state. These announcements have been presented and analysed through this article. There are numerous entrepreneurship opportunities in these sectors and much financial support is also needed. This need has been addressed through this budget. As these sectors fall under the MSME, schemes and announcements made for entrepreneurship and development of MSME is also worth of analysis for implication in the sectors targeted through this article.

Announcements for Handloom and Handicraft Sector

  • Khadi, the symbol of national freedom struggle, is a hand-spun hand-woven fabric. It is synonymous to handloom for India. ‘Khadi Weavers Economic Incentive Scheme’ in Rajasthan provides incentive to spinners and weavers engaged in production of this fabric. The budget announcement includes doubling of this incentive amount payable. 
  • Modernization of 50 institutions dedicated to Khadi has also been announced. This is a crucial step to keep Khadi in line with the contemporary socio- ecomonic era. Inclusion of modern methods and practices will uplift this art of weaving from the current state and will also provide it a competetive edge. 
  • Fifty percent discount on Khadi products will be offered between 2 October, 2023 and 30 January, 2024 same as it was provided during the previous year.
  • Implementing the ‘Rajasthan Integrated Cluster Development Scheme’, an amount of Rs. 25 crores has been announced to be expended on selected 25 handicraft clusters of the state along with leather products cluster- Dausa and Tonk, Bandhej Dyeing Cluster- Churu and Bikaner & embroidery cluster of Barmer for providing better infrastructure and capacity development.
  • Named after Hindu God of craftmanship and architecture- Lord Vishwakarma, the ‘Vishwakarma Kamgar Kalyan Yojna’ has been announced which is intended to provide its beneficiary, an amount of Rs. 5000 for purchase of kits/equipments. Beneficiaries of this scheme will be women belonging to lower income groups, deprived classes, handicraft workers, clay work artisans, nomadic tribes. One lakh women will be benefited with this scheme. 
  • Similarly, folk artists will be supported through a 100 crore ‘Folk Artist Welfare Fund’. Rs. 5000 will be provided as one time amount for purchase of tools and equipment for their respective art.
  • 30,000 Handicraftsmen and Artisans will be financially supported with an amount of Rs. 10,000 each for participating in National and State level exhibitions, Fairs to market their products. 
  • ‘Grameen Haat’ has been annoounced to be established in three cities- Alwar, Ajmer and Pushkar. ‘Jaipur Kala Samagam’- An International Event will be organised twice in a year. Both announcements are directed towards providing local as well as international exposure to artists, painters, handicraftsmen for displaying their art. Such exposure will also help them in updating their knowledge and moulding themselves to anticipate & respond effectively to national as well as global opportunities available for their craft.
  •  A dedicated ‘Center of Excellence’ for Blur Pottery- the Traditional Craft of Jaipur, will be set up in its home town i.e. Jaipur. Glazed, Blue-coloured clay articles have been praised and demanded worldwide.
  • Gems and Jewellery of Rajasthan are valued for their mesmerising beauty throughout the globe. Polki, Kundan, Thewa, Meenakari, Lac Jewellery are some popular names. To ensure their progress and help them reach their maximum market potential, 44,000 sq. Meter. land will be allocated in Sitapura Industrial Area, Jaipur for construction of ‘Gem Bourse’.
  • Branding of the state to increase tourism was announced in the previous budget. Tourism Development Fund for this purpose has been increased to 1.5 times. Increase in tourism supports local livelihood and boosts ecomony of that area. As part of the local economy, art and craft sector is expected to benefit with this. Tourist influx will result in availability of more trade opportunities for craftsmen and promotion of their art through popularization.
  • Export has a significant contribution in the economy of the state. Announcements regarding expansion of export facilities made for all industries operating within the boundaries of Rajasthan will benefit the target sectors of this article as well. New Inland Container Depots in Bikaner and Barmer, Air Cargo Complex in Jaipur and Air Cargo in Udaipur (by Rajasthan Small Industries Corporation Limited) will be made to promote and facilitate trade.

 

Announcements for Entrepreneurship Support and Development

To support and promote entrepreneurship in MSME sector, multiple announcements have been made. Handloom and Handicraft Sector, a part of MSME, is well known for emerging opportunities, innovation and scope for entrepreneurship. Considering the scope and opportunities in MSME, 

  • It has been announced to start ‘Mukhyamantri Yuva Udyam Protsahan Yojna’ for yourth between 18 to 35 years in age. This svheme includes all the benefits of ‘Mukhyamantri Laghu Udyog Protsahan Yojna’ plus 10 percent margin money will be provided to male entrepreuners and 15 percent margin money will be provided to female entrepreuners for their loans. Limit set for this margin money payable is upto Rs. 5 Lakhs. It is intended to support 5000 young entrepreuners with a cost of Rs. 100 crores to the government. An attempt has been made to promote women entrepreunership in small scale industries and also promote innovative self-employment. 
  • To support the use of modern technology for start-ups, an amount of Rs. 250 crores has been alloted under Rajasthan Venture Capital Fund.
  • ‘Vishvakarma MSME Tower’ will be constructed with modern infrastructure facilities in Jaipur at a cost of Rs. 125 crores.
  • Co-Working spaces & workshops will be constructed in RIICO Industrial areas for MSME units. Transit housing scheme will also be formulated in collaboration with industries to provide residential facilities to workers.
  • Focusing on Export potential of MSME, an export helpline will be established by Rajasthan Export Promotion Council with Rs. 20crore infrastructure to support and assist entrepreuners in export of their products.
  • Energy is a major input for any industry. MSME in Rajasthan will be provided free energy audit facility to analyse their energy consumption and efficiency. Selected units will be given additional discount of 1% for installation of certified energy efficient equipments. 

The above announcements and declarations, are targeted for complete MSME sector. Handloom and Handicraft, being a part of MSME, will be benefited with these. These two, in particular, provide creative and skill based employment with lots of scope for innovation and experimentation. Sufficient support will not only result in employment generation but also preservation and continuation of cultural heritage, development of local communities, market development and expansion , increased productivity and intellectual capacity and also increased revenue generation for the state.

Conclusion

Announcements and declarations from Rajasthan Budget 2023-24 which are directly and indirectly related to the handloom and handicraft sector have been presented throughout this article. Support has been provided to handloom and handicraft sector directly in the form of incentives, material purchase grants, infrastructure development, modernisation, by providing platform for display and promotion of art at various levels and much more as discussed in this article. Indirect support includes development of export facilities, especially ‘Export Helpline’, various schemes for entrepreneurs and startups, support for loans and technology upgradation. These will, no doubt, play a significant role in development of these sectors but the actual result depends ultimately on the implementation upto the beneficiary’s end. The future of handloom and handicraft as an industry looks promising, both econimically and culturally, if due support and patronage is provided in a timely manner. 

References

Finance Department, GoR (rajasthan.gov.in)

मुख्य पृष्ठ | राज्य का बजट, राजस्थान सरकार (rajasthan.gov.in)

बजट भाषण 2023-24 | राज्य का बजट, राजस्थान सरकार (rajasthan.gov.in)

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