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  sectors Rural Development Sector

Rural Development

Background

In general perspective cottage and rural industries mainly comprises handicrafts, handlooms, silk, jute, carpet and other synergy products associated with traditional, low skilled and dispersed economic activities.

India has inexhaustible and infinite variety of handicrafts, handlooms, silk, carpet, jute due to the exquisite craftsmanship which has been passed over generations, but was not able to tap this on the commercial scale and cannot become as major sourcing hub.

Though exports from this sector appears to sizeable but the share of Indian market is not even 2% whereas China stands for 30% in a whopping $ 235 billion world market. The sector suffered due to very nature of being unorganized, lack of awareness, design and product development, appropriate technology interventions, absence of market intelligence and poor institutional and infrastructural frame work etc.

In last two decades many developing countries placed heavy emphasis on strengthening production capacities and have become production base for all type of utilitarian product categories. The countries like China, Indonesia, Malaysia, Thailand, Cambodia, Vietnam etc. have major impact on their GDP and economical development due to the Institutional support provided by their respective Governments in the areas of the capacity development, design and product development and technological support for the mass production for such employment providing Industries. Due to these support systems these countries today are looked upon as major sourcing hubs for the entire western world where production is no longer remain as a lucrative business.

The need is to replicate China model where each product at large have become the sourcing hubs for the entire world. The major constraints and bottlenecks are to be addressed. The efforts made till date were not able to create a sizeable impact on the economy as well additional employment opportunities.

Initiatives

With the changing economies and the social sector of the country with more educated rural youth and womenfolk there is an urgent need to reorient and redefine the present approach. The Development and promotion of the rural and cottage crafts is be given professional look by an organisation like IL&FS who’s objective is also to create necessary infrastructure in far flung areas and creation of support system for the sustainable supply chain management . Today Govt. is also emphasizing the need of Corporate Social Responsibility and making it mandatory there is a need to professionalize the efforts also otherwise the impact cannot be noticed on the national scale.

IIDC is working closely with the States which initially need professionalize services like Orissa, North Eastern States, Madhya Pradesh for developing a road map for these sectors.

Project Development Approach

The project development approach envisaged by IIDC is briefly narrated as below –

Fill up the gap, due to lack of end to end (concept to commissioning) service providers as sector is dominated by NGOs / SHGs.
Seamless and strong support system to State Governments / State Corporations (Unable to utilize funds due to lack of expertise)
Conceptualize / introduce PPP structuring / self sustainable model for infrastructure facilities (still in nascent stage)
Opportunity to serve country’s second largest employment providing sector with pan India presence.
Enhance the share of this sector in world market from 2% to 4%
Provide professional support services with integrated approach and assured deliveries.
To work as lead Partners with Development Commissioner (handicrafts), Development Commissioner (Handlooms), DONER, EPCH, NEDFI, NCDPD and Multilateral Agencies for providing a support system.

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