Impact of globalization on the informal textile sector in India: case of powerloom silk weavers of Dodballapur, Karnataka

Abstract

In the 90s, when India decided to open up its economy, it also exposed itself to the forces of globalization. Informal sectors across all industries were expected to be affected especially textile sector, being characterised by low level of technology, low productivity and being highly labour intensive. The silk industry of Dodballapur, consisting mainly of small weavers (owning from one to four looms), suffers from all these problems. Their already declining lightweight silk saree market is further threatened by globalization. This study was undertaken to asses the impact of globalization on the silk weavers of Dodballapur and thereby, to suggest measures such that on the one hand, their trade was not threatened and on the other, they were able to make use of the opportunities brought on by globalization.The results of a survey of Dodballapur weavers conducted in 1997 by Roy Chowdhury(2001) were taken as base information. A fresh survey of 30 households was conductedto record any major deviations. Discussions were held with a large section of people associated with the silk industry, including the weavers themselves, officials of the Powerloom Service Centres, Karnataka State Powerloom Development Corporation, Karnataka Silk Marketing Board, Central Silk Board, Ministry of Textiles, silk (retail and wholesale) sellers of Bangalore, co-operative leaders and others. The survey reveals that the financial condition of the small weavers is not very good, even if it is marginally better than 1997. Arrival of cheaper and better synthetic substitutes from within India and abroad have cut into their silk saree market. Most of them have already shifted to other materials like art silk and polyester. Also, they continue to be in the stranglehold of the middlemen, who pay them low wages and exploit them in other ways. In an attempt to break this stranglehold, co-operatives were started in the 70s, to help the weavers with credit and other facilities such as procurement of raw material and marketing of finished product. However, the co-operatives failed due to rampant corruption and mismanagement. Various policy measures, such as setting up of Technology Upgradation Fund Scheme (TUFS), Textile Centres Infrastructure Development Scheme (TCIDS) etc., have been taken by the Govt. in the recent years to help the textile sector. However, their benefits are not quite accruing to the informal textile sector workforce.It is felt that some government intervention is necessary (though mostly as a facilitator) tohelp the small weavers of Dodballapur. Technological upgradation and setting up of pre and post loom facilities is a basic requirement. A cluster development approach, like the setting up of apparel parks, is a possible solution. However, deep backward and forward linkages must be set up - from yarn on to marketing - for the endeavour to succeed. NGOs should be encouraged to assist the weavers in establishing modern technology and improving their productivity and quality levels. The small weavers should be prompted to switch over to alternative materials like synthetics which have far greater potential in domestic as well as international markets. However, they need to be extensively retrained, and the Power loom Service Centre at Dodballapur can playa crucial role in this. Another solution is to invite entrepreneurs to participate in the process - they can set up the required backward and forward linkages and make use of the opportunities presented by the flexible structure of the weaving industry of Dodballapur. Government can set up a venture capital fund and bear part of the risk.