Kanchipuram - Economy

Economy

The traditional and major occupation of Kanchipuram is silk saree weaving followed by agriculture. As of 2008, an estimated 5000 families were involved in weaving silk sarees. The main industries of the city include cotton, light machinery, electrical goods and food processing. There are 25 silk & cotton yarn industries, 60 dyeing units, 50 rice mills and 42 other industries within the Kanchipuram municipal limits. Another important occupation is tourism and service related segments like hotels, restaurants and local transportation.

Kanchipuram is a traditional centre of silk weaving and handloom industries for producing Kanchipuram Sari. According to Hindu legend, Kanchipuram weavers are descendants of Sage Markanda, the celestial weaver for Hindu gods. While cotton is the favourite for Hindu god Shiva, silk is favoured by Vishnu. The existence of all the silk weavers around Vishnu Kanchi where most of the Vishnu temples are located, is attributed to the legend. Historically, the Chola king, Raja Raja Chola I (985–1014 CE) invited the weavers to migrate to Kanchi. The craft picked up with the mass migration from Andhra Pradesh in the 15th century during the Vijayanagara rule. During the French siege of 1757 CE, the city was burnt with the art, but the art reemerged in the late 18th century. Though the industry is worth 100 cr (18.18 million $), the weaving community suffers because of poor marketing techniques and duplicate market players. In 2005, "Kanchipuram Silk Sarees" received the GI tag and became the first product in India to implement the security protocol, which includes jail and fine provisions for violators. Kanchipuram is one of the three cities in the silk industry of India having higher rate of child labour and bonded labour. The local administration is accused of aiding child labour by opening more number of night schools in Kanchipuram from 1999. There is an estimated 40,000 to 50,000 child labour in Kanchipuram compared to 85,000 in the same industry in Varanasi. Children are commonly traded in the range of 10,000 to 15,000 (200 – 300$) and there are cases where the whole family is held in bondage. Child labour is prohibited in India by the Children (Pledging of Labour) Act and Child Labour (Prohibition and Regulation) Act, but not strictly enforced.

All major nationalized banks such as State Bank of India, Indian Bank, Canara Bank, Punjab National Bank, Dena Bank and private banks like ICICI Bank have their branches in Kanchipuram. All these banks have their Automated teller machines located in various parts of the city.