ADB loan aimed at reviving traditional Indian industry

MANILA: The Asian Development Bank said on Thursday that it is lending $150 million to help India revive the industry for making "khadi," a handmade cloth promoted by Mahatma Gandhi.

Reviving the khadi industry, which is hampered by "poor production and marketing" will boost employment in rural areas, particularly among women and minorities, the ADB said in a statement from the Philippines.

Khadi, a versatile fabric made of cotton, silk, or wool, spun into threads on a spinning wheel called charkha, was originally promoted for rural self-employment in the 1920s by Indian political and spiritual leader Mahatma Gandhi, the institution said.

Sales of the fabric have stagnated due to factors such as ageing equipment, inconsistent product quality and lack of professional expertise and funding, the ADB said.

The ADB loan will help reform the industry by establishing a "khadi mark" to promote brand awareness, setting up a privately controlled marketing organisation and enabling the purchase and processing of raw materials to bring down costs and improve quality.