India's Coir Sector: Livelihoods, Exports, and Rural Empowerment

India's Coir Sector: Livelihoods, Exports, and Rural Empowerment

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Key takeaways

  • India dominates the global coir market by producing nearly two-thirds of total worldwide coir output.
  • The coir sector generates an annual turnover of Rs 16,000 crore and adds almost 1% to India's GDP.
  • Coir exports achieved a value of Rs 6,614.40 crore in FY 2025-26, targeting markets in the US, China, and Europe.
  • With over 21,000 units, the coir industry employs over 7 lakh workers, where women account for 80% of the workforce.
  • The Ministry of MSME promotes coir-based enterprises using schemes like Coir Vikas Yojana (CVY) and PMEGP.

Why in News

  • The Ministry of MSME recently highlighted the vital role of the coir sector in boosting rural livelihoods and empowering women.
  • This industry also drives local entrepreneurship and sustainable economic growth to support the goal of Viksit Bharat@2047.

About Coir

  • Coir is a natural fibre extracted directly from the outer husk of coconuts.
  • Manufacturers use this fibre to produce eco-friendly items such as ropes, mats, mattresses, brushes, and coir pith products.

Global Position

  • India stands as the largest producer and exporter of coir and coir-based products in the world.
  • The country accounts for nearly two-thirds of total global coir production.

Economic Contribution

  • The Indian coir industry generates an annual turnover of approximately Rs 16,000 crore.
  • This sector contributes almost 1% to India's total gross domestic product.

Exports

  • Exports of Indian coir items reached Rs 6,614.40 crore in FY 2025-26.
  • These export items include coir pith, raw fibre, yarn, and tufted mats.
  • The top export destinations for Indian coir goods are the US, China, Netherlands, Spain, and the UK.

Employment Generation

  • The sector houses more than 21,000 coir units operating across the country.
  • It provides direct and indirect jobs to over 7 lakh workers.
  • Women from rural households make up around 80% of this entire workforce.

Coir Vikas Yojana

  • The Coir Vikas Yojana (CVY) is a Central Sector Scheme run by the Ministry of MSME.
  • It supports industry growth through skill training, tech upgrades, financial aid, market promotion, and export assistance.

Entrepreneurship and Market Promotion

  • The government helped over 1,000 exporters participate in international trade exhibitions.
  • Financial aid exceeding Rs 20 crore was given to over 850 entrepreneurs to expand their businesses.
  • The Prime Minister's Employment Generation Programme (PMEGP) has also backed coir-based enterprise setup.

Sustainable and Inclusive Growth

  • The coir industry turns waste coconut husks into valuable, fully biodegradable products.
  • It actively promotes circular economy practices, rural factories, women leadership, and export growth for sustainable development.