Innovation for Economic Resilience and Sustainability: A case study of Sambalpuri Ikat Handloom Cluster of Bargarh in India

Abstract

Employing more than three million people, handloom weaving is one of the largest economic activities after agriculture. It constitutes 15% of the cloth production in India and 95% of the global handmade fabric. However, the return on investment in the sector remains low and the industry is under constant threats from power-loom and other substitutes. Nonetheless, the Sambalpuri Ikat is an unrivalled example, which has flourished over the years because of a series of innovations diffused by the weavers without compromising on the traditional Ikat artistry. Predominantly consisting of micro-enterprises, this cluster demonstrates that technological innovations have enhanced the income of the weavers by more than 300%, and ensured better occupational health and gender equity. The cluster ecosystem has enabled the adoption of innovations in more than 8,000 units, over 13 years. This article highlights learning from the Bargarh Sambalpuri Ikat Handloom cluster on how a traditional cluster could maintain its growth trajectory despite being threatened by several shocks and challenges.