Local workers struggle as government schemes fail to address challenges faced by small businesses
Team Clarion
MALEGAON – “This is our heritage, our lifeblood. When it’s threatened, the whole town feels it,” said local resident Imran Ali, reflecting on the struggles faced by Malegaon, a town historically known for its booming textile industry. However, the once-thriving power loom sector, a key pillar of the region’s economy, is now in decline, leaving many workers searching for alternatives to make ends meet.
Malegaon, a town divided by the Mosam River, is home to a bustling textile industry that has been central to its economy for decades. While the Hindu-majority side of the town remains active, it is the Muslim-majority areas where the hum of power looms has traditionally been heard, signifying the role of local workers in India’s garment manufacturing. The region, including nearby Dhule, has played an essential role in India’s textile industry, particularly through small-scale weaving and garment production.
However, the once-promising industry has faltered in recent years. Former factory owner, Tariq Shah, shared his distress: “I had to close my power loom factory months ago. Now, the space that used to produce cloth is where I keep my cattle.” Tariq, like many others, has shifted to other forms of manual labour after his business closed down.
The decline in the industry has affected thousands of workers, with many families struggling to find new employment opportunities. A former power loom factory owner from Dhule, Akhtar Ali, explained, “I had to shut down my factory. Now, I work as a driver. Our income has taken a huge hit.” This downturn has also impacted younger generations, many of whom are unaware of alternative career paths and continue to enter the fading textile sector.
Despite the Indian government’s introduction of a performance-linked incentive scheme for the textile industry in 2021, workers in the small-scale sector feel excluded from the benefits. “The government’s schemes like the Production-Linked Incentive (PLI) are geared towards big producers,” said local worker Aslam Khan. “Small-scale operations, like ours, don’t get any help.”
In addition to these issues, the influx of cheaper Chinese textiles, often processed in Bangladesh before entering India, has made it increasingly difficult for local producers to compete. “It’s impossible to stay competitive when we’re up against these low-cost imports,” said one power loom operator, describing the unfair competition created by “dumping.”
The Ministry of Textiles, led by Minister of State Pavitra Margarita, has acknowledged these concerns. In August 2024, she assured that the government was working to monitor and regulate the import of cheap textiles and promised support for small businesses, particularly through electricity bill concessions for textile units in Maharashtra. However, some believe these measures may not be enough to address the root causes of the industry’s struggles.
Industry insiders argue that government schemes, such as the one introduced in 2003 requiring businesses to deposit significant sums to qualify for benefits, have been particularly burdensome for Muslim weavers already facing economic hardships. “These schemes are difficult for small-scale Muslim weavers, who are already at a disadvantage,” said one industry insider.
Another challenge faced by Malegaon’s weavers is the dissolution of long-standing economic relationships. “Our business ties with suppliers and buyers have shifted, and most of the connections that remain are with non-Muslim traders,” said one weaver, highlighting the changing dynamics of the local economy.
Despite the mounting challenges, there remains a sense of hope in Malegaon. Workers, particularly women and children, continue to dream of a brighter future, hoping that future reforms and government initiatives will help revive the industry and create new opportunities. “We hold on to the hope that change will come, as it always has in the past,” said one local worker, echoing the resilience that has defined the community for generations.
