Impact of COVID-19 and lockdown on the informal sector in India: The case of handloom industry

The COVID-19 pandemic and lockdown has caused massive disruption in almost every sector of the economy in India and informal sector has been the worst affected. The handloom industry being the second most employers in the informal sector is important to the economy in terms of employment generation, output and export. But, the industry has been engulfed with manifold problems since its inception and COVID-19 crisis worsened the condition of the handloom workers. In this context, the current study is an attempt to look into the impact of pandemic and lockdown on the handloom industry in the informal sector in India and the key problems faced by the handloom workers in their everyday life. Taking information from both primary and secondary sources, it is observed that the handloom industry in India is severely affected by COVID-19 and lockdown which resulted in loss of income and livelihood to the handloom workers. Ban on non-essential transportation facilities led to unavailability of raw materials, inflated price of yarn and dyes. Closure of markets resulted in unsold clothes piling up in weavers’ residents which drastically affected revenue generation in this sector. The weavers are living and working in ill standard houses and suffering from poverty, malnutrition, indebtedness etc. Obsolete technology along with unorganised production systems and lack of government support are making their condition miserable. Specific central government policy along with state support is necessary for the revival of the handloom industry which will help to rebuild the informal economy in India.