ET Make in India SME Regional Summits: Kolkata is weaving tradition with technology

At the heart of West Bengal’s economy lies a rich tradition of handloom weaving, a craft that not only defines its cultural identity but also provides rural livelihoods second only to agriculture. Fabrics such as Jamdani, Baluchari, and Tant are world-renowned, produced by dedicated artisans often working within cooperatives or family units. Yet, this sector faces mounting challenges: fierce competition from power looms and mills, outdated technology, fragmented marketing, and an ageing workforce as younger generations seek better-paying jobs elsewhere.

This subject formed the crux of the keynote address, ‘From Handlooms to High-Tech: How Policy is Shaping the Potential of Bengal’ by Partha Chowdhury. Chowdhury, who is Joint Director, MSME (BG) of the Directorate of MSME, Govt. of West Bengal, graced the ET Make in India SME Regional Summit, which pitstopped in the City of Joy on September 4.

This edition of the ET SME Summit series had IDBI as banking and lending partner, Canon as the tech enabler, and Audi as gold partner.


Past, present, future
The West Bengal government has taken decisive steps to revive and modernise the state’s textiles sector. “Financial aid and subsidies, including startup incentives, old-age pensions for artisans, and interest subsidies on loans provide crucial support to weavers. Simultaneously, development initiatives in garment clusters like Metiabruz are creating hubs equipped with modern design facilities and marketing support tailored to handloom needs,” Chowdhury elaborated.

The support extends through government-backed fairs and collaborations with platforms such as Tantuja Handloom and Biswa Bangla Marketing Corporation, which promote heritage products and open new sales channels. Importantly, technological upgradation programmes are introducing modern equipment, such as rapier looms, to boost productivity while preserving the unique quality of Bengali handlooms.

Such efforts have paid off. West Bengal is a critical player in India’s handloom sector; about 12% of its products are exported, which translates to over a tenth of India’s exports in this category.

But the transformation doesn’t stop there. The state is simultaneously nurturing a high-tech and IT economy, with policies for technology investment, incentives, mentorship, and financial support to young entrepreneurs. As Chowdhury said at the Kolkata ET SME Summit: “The state’s rich intellectual capacity, bolstered by premier institutions like IIT Kharagpur and ISI Kolkata, offers a strong foundation for leadership in the digital economy.”

Infrastructure investments in IT hubs like Salt Lake and New Town provide modern office spaces, reliable power, and high-speed internet, creating an enabling environment for businesses. Meanwhile, digitisation and e-governance initiatives such as the Silpasathi portal have streamlined administration. Skill development programmes ensure a pipeline of trained professionals not only for IT, but also for traditional sectors like textiles.

What makes West Bengal’s strategy compelling is its dual focus: protecting and enhancing traditional labour-intensive industries while promoting a knowledge-based economy. Income from the handloom sector fuels education and technology upgrades, cultivating a new generation of tech-savvy entrepreneurs in textiles. Conversely, the high-tech sector delivers innovative solutions to the handloom industry, from e-commerce platforms and supply chain software to AI-powered design tools.

“By simultaneously nurturing heritage and embracing its high-tech future, West Bengal is forging a unique, sustainable path to prosperity, one that weaves together the old and the new to create a strong and resilient future,” Partha Chowdhury underlined.

Infrastructure strengthening continues with initiatives to boost spinning capacity and revive heritage products. The Biswa Bangla Marketing Corporation plays a pivotal role in promoting traditional crafts. West Bengal produces about 55% of India’s muslin, with around 600 master weaver families and 3,000 artisans spread across seven districts. Other heritage initiatives include Project Jamdani and Project Baluchari, supporting thousands of skilled artisans.

“Our state hosts nearly 130 handloom clusters, of which 94 are operational. The Metiabruz cluster alone generates nearly ₹20,000 crore in turnover, while the Ashoknagar power loom mega park spans 150 acres. Other clusters for carpet weaving, hosiery, and textiles are supported by government parks such as the Textile Park and Hosiery Park near Siliguri and Baruipur [respectively],” he shared at the Kolkata ET SME Summit.

Thanks to such policies, West Bengal’s handloom and textile sectors are poised for leadership in India’s market within two to three years, both in meeting domestic demand and expanding exports.

In sum, West Bengal is not just preserving its past. It’s weaving that past into a robust, innovative future. The state government’s ongoing commitment to these sectors underscores a broader vision of inclusive and sustainable growth for the state.

The ET Make in India SME Regional Summits, ET MSME Day, and ET MSME Awards are flagship initiatives to celebrate the versatility and success of India’s MSME sector. If you lead or are part of a micro, small, or medium enterprise, register for the ET MSME Awards 2025 before October 15, 2025.