HANDICRAFT

Introduction
Handicrafts are unique expressions and represent a culture,

tradition and heritage of a country. The Handicraft Industry is one

of the important productive sectors. Various attempts have been

made to define this broad and diversified industry. The following

definition strives to cover diversity and complexity of Handicraft

Industry.

Defining Handicrafts:
Definition According to United Nations Educational, Scientific and

Cultural Organization/Information Technology Community

(UNESCO/ITC) International Symposium on “Crafts and the

International Market: Trade and Customs Codification”, Manila,

Philippines, October 1997:

Handicrafts can be defined as products which are produced either

completely by hand or with the help of tools. Mechanical tools may

be used as long as the direct manual contribution of the artisan

remains the most substantial component of the finished product.

Handicrafts are made from raw materials and can be produced in

unlimited numbers. Such products can be utilitarian, aesthetic,

artistic, creative, culturally attached, decorative, functional,

traditional, religiously and socially symbolic and significant.

Definition according to Govt. of India:

Handicraft can be defined, which is made by hand; should have
some artistic value; they may or may not have functional utility.

Importance of Handicrafts
The Cultural Importance: Handicrafts play very important role in

representing the culture and traditions of any country or region.

Handicrafts are a substantial medium to preserve of rich traditional

art, heritage and culture, traditional skills and talents which are

associated with people’s lifestyle and history.

The Economic Importance: Handicrafts are hugely important in

terms of economic development. They provide ample opportunities

for employment even with low capital investments and become a

prominent medium for foreign earnings.

Classification:

Handicrafts industry comprises diversified products portfolio and

there is large variety available in market. Handicrafts

products can be distinguished into following:

Metal ware, Wood ware, Hand printed textiles, Embroidered and

crocheted goods, Shawls, Carpets, Bamboo products, Zari

goods, Imitation jewellery, Paintings, Earthenware, Jute

products, Marble Sculpture, Bronze Sculpture, Leather

Products and other miscellaneous handicrafts and

innovativeness with the uniqueness in industry.

Handicraft Industry has evolved as one of the major contributors

for Export and foreign earnings:-

• Exports of handicrafts including hand knitted carpets during

2005-06 were Rs.13412.92 Crore.

• Export items- Art Metal wares, Wood wares, Hand printed

textiles, Embroidered and Crocheted goods, Shawls as art wares,

Zari goods, Imitation jewelry, Carpets, Leather products, Jute

products, Paintings, Bamboo products, Earthen ware, Marble

Sculpture, Bronze Sculpture etc.

• India's major export markets are USA, Germany, UK, France

and Japan, Saudi Arabia, Canada, and Italy etc.

Industrial Policy:

There are no restrictions regarding location for establishing

manufacturing units.

All producers of handicrafts are exempt from obtaining Industrial

License to manufacture. The delicenced undertakings, however,

are required to file an Industrial Entrepreneur Memoranda (IEM)

in Part 'A' with the Secretariat of Industrial Assistance (SIA), and

obtain an acknowledgment. No further approval is required.

Trade Policy:

Handicraft products fall under the ITC (HS) code 97.

Paintings, drawings and paintings, domestic articles of wood etc.

which come under 9701

Original engravings falling under 9702

Original sculptures categorized under 9703

Products under the code 9704 are freely importable.

Imports of items in 9705 are restricted.

Characteristics of Indian Handicrafts for exports; as defined by

Govt. of India are:

They are quota free and neutral to fiber content or composition,

barring 100% silk.

They include Garments, Made-up and clothing accessories.

Are produced in cottage industries.

Should not have zippers.

Must be ornamented using any one or more of the following

Indian folk styles.

Hand painting, Hand printing, Batik, Tie and Dye, Kalamkari.

Hand embroidery, Crocheting.

Appliqué work of sequins, wooden or glass beads, shells, mirror,

ornamental motifs of textiles materials.

Extra wrap of welt ornamentation of silk, art silk or zari threads.

Should conform to shape and styles of each item as defined in the

agreed list of different countries.

Should satisfy the dimensional aspects.

Tariff-non-tariff Policy:

Except for 9704, all the items under 97 attract a total import

duty of 35.2 per cent. This includes a basic duty of 35 per cent

and a special additional duty of four per cent. Items under 9704

do not attract any import duty.

In India, handicrafts are distributed through following major

Distribution Channels:

Retailers/Direct Sales:

This is the most common distribution channel for selling

handicrafts in India. In India there are large number of retailers

who provides wide range of handicrafts products.

Wholesalers/Distributors:

Apart from retail and direct sales channels, wholesalers and

distributors also provide large range of handicraft products.

 Wholesalers can keep product stock in bulk and can sell direct to

final consumer or retailer.

E-Commerce:

Internet has emerged as a one of the promising distribution

channel for selling the handicrafts products. It is estimated that

internet will be one of the major channel for the distribution of

handicrafts products through E-Commerce.

All India Handicrafts Board:

The All India Handicrafts Board was established in 1952 to suggest

various solutions for improvement and development in Handicraft

Industry. Formulation of Plans, Assistance to State Govt. for

planning and execution of schemes, and providing assistance for

Marketing, Financial, and Organizational aspects of Handicrafts

Industry.

State and Union Territories:

Every State and Union territories has different department for

the development of Handicrafts Industry. Marketing, Promotion,

Financial Aid to Small Scale Industries, and other programs are

the functions of State level corporations.

Central Corporations:

The Handicrafts and Hand looms Export Corporation of India: It

was established in 1962. Exports Promotion, Development of

potential market execution of Whole Sale and retail Orders are

major functions of organization.

The Central Cottage Industries Corporation Pvt.

Ltd.:

It is a registered society that runs Central Cottage Industries

Emporium in New Delhi, Mumbai, Kolkata, Chennai to sell the

Handicrafts products.

The All India Hand loom Fabrics Marketing Cooperative

Society Ltd.:

This Cooperative Society is supported and promoted by All India

Hand loom Board. It has various hand loom emporiums in all

metro cities, Chandigarh, Ahmedabad, Hyderabad etc. and few

branches in New York, Singapore etc.

All India Organizations:

All India Textile Handprinting Industries Federation:

1106 Prasad Chambers, Swadeshi Mill Estate, Mumbai, India.

All India Federation of Zari Industry:

Safe Deposit Chambers, Surat, Gujarat, India.

All India Carpets Manufacturers Association:

Post Box No. 63, Bhadohi, District Varanasi, Uttar Pradesh, India.

Export Promotion Organizations and Councils:

The All India Handicrafts Board (West Block VII, R.K. Puram, New

Delhi- 110022):

This organization is responsible for Export Promotion, Market

Development, and Arranging Exhibitions etc.

The Gem and Jewellery Export Promotion Council (D-15,

Commerce Centre, 4th Floor, Tardeo Road, Bombay- 400001):

This Organization is responsible for the promotion of Jewellery,

Diamond, Stones, Pearls craft of the country.

The Handicrafts and Handlooms Export Corporation of India

(Jawahar Vyapar Bhavan, Anex-I, Tolstoy Marg, New Delhi

110001:

It is Govt. undertaking and responsible for exports efforts of

private sector promote Indian Participation in International

Exhibitions.

The Handloom Export Promotion Council (123, Mount Road,

Chennai- 600006):

It works for the export promotion of Indian Handlooms in the

country.

The Indian Institute of Foreign Trade:

It provides Training Courses and publishes various survey reports.

The Trade Development Authority of India:

(Bank of Baroda Building, 16 Parliament Street, New Delhi-

110001).
The Export Credit Guarantee Corporation (Express Towers, 10th

Floor, Nariman Point, Bombay-400001):

It provides exports credit intelligence, covers against various

risks.

The Export Inspection Council (14/1-b Erza Street, World Trade

Centre, Calcutta- 700001):

It is responsible for Quality Control Issues, and Pre-shipment Act.

The Federation of Indian Export Organization (Allahabad Bank

Building, 17 Parliament Street, New Delhi-110001) The Trade

Authority of India (Pragati Maidan, New Delhi-110001):

It was started in 1977 and works for exports and trade promotion

and development.

Private Organizations/Promoters:

Calcutta Puppet Theatre (20, Bijan Setu Ballygunge, Calcutta 700

019, West Bengal)

Indian Arts Theatre (No. 2283, Sector 35-C, Chandigarh, Punjab)

Indian National Trust of Art and Cultural Heritage (Tamil Nadu

Chapter)
855, Mount Road, Madras 600 002, Tamil Nadu; Phone - 838111,

4918943

The Indian Handicraft Industry stands a unique place among all

other industries. It represents the rich culture, tradition and

heritage of India. India’s rich cultural diversity and heritage

provides a unique and huge resource for developing craft

products. The Indian Handicraft Industry is showing continuous

growth rate of 20% every year and it is one of the most important

segment of decentralized sector in India.

Most of the part of industry operates in rural and semi urban

areas throughout the country and have large and potential in

Indian & International market. Indian Handicraft Industry

provides wide range of products because of country’s diversified

culture, traditions and heritage. There is huge demand of Indian

Handicraft products in international market. Industry provides

ample opportunities for employment to people belonging to

backward and weaker classes of society.

However, Indian Handicraft Industry has the status of cottage

industry in India, but it has shown promising growth and evolved

as one of the major revenue generator over the years. It has

shown continuous growth at the rate of 15-20% over the years and

contributes major role for export and foreign earnings.

Low capital investment, Cheap and skilled labor,

Diversified product portfolio, Flexible Production are few

important features of Indian Handicraft Industry. However, Lack

of Infrastructure & Technological support, Lack of awareness of

international and new trends and Poor Promotional campaigns are

a few drawbacks of industry which needs to be overcome. It is

estimated that Handicraft Industry in India is all set to grow with

rapid rate in future and contribute its share towards economic

development handsomely.

Industry Analysis
India is a country of rich culture, history and traditions. India is

one of the major producer and supplier of Handicrafts products in

the world. India has been major producer and supplier of

handicrafts products since very long time. Before the industrial

development, this art and industry was a potential economic

advantage for the country.

During recent years, the importance of handicrafts has been

surged due to their cultural and financial values. The small-scale

industries including handicrafts can play a major role in the

development of the economy of both developed and the

developing countries equally. The 90-95% of the total industrial

products of the world is produced in small workshops run by less

than 100 people. For instance, Japan, which is at the peak of the

economic development, has considered 84% of its industries as

small and medium scale industries. In countries such as India and

China, handicrafts are as high as the mechanized products in

quality and volume, and are a major source of their foreign

earnings. These countries are focusing on the development of

handicraft industry, in order to strengthen the economy.

The Indian handicrafts industry is highly labour intensive, cottage

based and decentralized industry. The industry is spread all over

the country mainly in rural and urban areas. Most of the

manufacturing units are located in rural and small towns, and

there is huge market potential in all Indian cities and abroad.

Handicraft industry is a major source of income for rural

communities employing over six million artisans including a large

number of women and people belonging to the weaker sections of

the society.

The Handicraft sector is highly creative sector and produces large

variety of crafts products. This industry is localized segment of

the domestic and international market. In India the production of

craft products are done on both large and small scale. Because of

low capital investment people can start their business on small

scale. Through this flexibility the demand and supply can be

managed Hough Indian Handicraft industry is considered a

cottage industry, but it has evolved as one of the major revenue

generator over the years. There has been consistent growth of

15% over few years and the industry has evolved as one of the

major contributor for export and foreign revenue generation.

There is huge demand for the Indian Handicraft products in both

national and international market. To match the demand and

supply with quality, there is need to have greater technological

support and innovativeness with the uniqueness in industry.

Key Facts of Indian Handicrafts Industry
• India’s rich cultural diversity and heritage provides a unique

and huge resource for developing craft products.

• The Indian Handicraft Industry is showing continuous growth

rate of 15% every year.

• Handicrafts industry is one of the important segments of

decentralized sector in India.

• Major parts of industry operates in rural and semi urban areas

throughout the country and has potential Indian and

International market with around 67000 exporters to tap the

market.

• According to the national census of handicrafts, undertaken by

the National Council for Applied Economic Research the value

of handicrafts produced last year were of Rs 26, 213 Crores.

• This Industry provides huge employment opportunities to

artisans that include women and people belonging to backward

and weaker society. This is one of the major sources of income

there.
 • India’s contribution in world market is 1.2%

• The total exports of crafts items: - Rs. 134129.2 millions.

• Industry’s share in India's exports:- 1.51 %

• In spite of having diversified products, some part of Indian

market are still untapped and market is price sensitive.

• Products are high priced in big and metro cities, which are

beyond, reach of people belonging middle and lower middle

class.

• Craft producers have to compete on price, quality and delivery

for different segments.

• There is poor promotion for craft products in national market.

• There is lack of awareness about new traditions and among

craftsmen and there is need of technological support and

training.

Arts and Crafts of Andhra Pradesh

Handicrafts have always been a remarkable feature of Indian art and

crafts. Andhra Pradesh is yet another great site offering ample

astounding handicrafts. The artisans still make these extraordinary

handicrafts with dexterity. Whether it is needle craft or bronze

castings, metal craft or stone craft, Andhra Pradesh has a wide array

of handicrafts that can become a part of your lifestyle. The eminence

of these handicrafts lies in their traditional method of creation.

These handicrafts are loved and adored not only by Indians, but

people from all parts of the world. Many inhabitants of the state still

rely on the handicraft industry

There is no dearth of exuberant culture and traditions in andhra

Pradesh. Here you can find many forms of performing arts,

handlooms and curios. The range of handicrafts is absolutely

fantastic at Andhra Pradesh. They hold a special place in the culture

and tradition of the state.

¤ Handi crafts

Some of the most exquisite handicrafts are found in Andhra Pradesh.

Many of them evolved from within the state whereas some were

brought by the people coming to this magnificent state.

¤ Banjara Needle Crafts(Embroidery)

This art form belongs to the nomads and gypsies of Andhra Pradesh.
The embroidery of this form is live and vibrant. Banjaras in Andhra

Pradesh display their colorful lifestyle through their exuberant

clothes.

¤ Bidri Craft

This craft belongs to the the city of Hyderabad in Andhra Pradesh. It

basically involves silver inlay on metal, which is very exquisite. There

are many legends related to its entry and exit into the country and

then to Andhra Pradesh.

¤ Bronze Castings

The famous bronze idols were based on the verses from the

Shilpashastra. These verses were called dhyana. These verses instruct

the craftsmen about the physical measurements, proportions,

description of the deity, characteristics, symbolism and above all,

aesthetics.

¤ Budithi Brassware

The Budithi Brassware originated from a small village called Budithi

in central Srikakulam, a district in Andhra Pradesh. This place is

famous for creating beautiful shapes out of alloys. These shapes are

also available in modern as well as antique style.

¤ Pembarthi Metal Crafts

Pembarthi is a small village located in the state of Andhra Pradesh at

about 100 kms from Hyderabad. The village is famed worldwide for

its unmatched brassware tradition. This meticulous brass work art

flourished during the reign of Kakatiyas Empire.

¤ Durgi Stone Craft

The famous Durgi stone craft originated in the Durgi. It is situated 10

Kms from Macherla in Andhra Pradesh. There is a school of sculpture

and stone carving located here, which imparts this ancient skill.

Some of the masterpieces of Durgi Stone Craft is found at the

Nagarjunakonda museum.

¤ Kondapalli Toys

The famous Kondapalli toys are made of softwood, known as Tella

Poniki. These toys are also made up of sawdust, tamarind seed

powder, enamel gums and watercolors. After the toy is carved on the
wood, a paste made of tamarind, wood and sawdust is applied for

giving further shapes and attaching limbs etc., to the toy. This art

form belongs to the Kondapalli district of Andhra Pradesh.

¤ Lacquer Ware

The Lacquer craft is widely found in Etikoppaka in Andhra Pradesh.

This place is one of the major centers of this craft. The Lacquer craft

involves the application of lacquer on wood in pleasing shades to

create a distinguishing appeal.

¤ Nirmal Arts - Paintings & Toys

The Nirmal art is generally found in the Nirmal town, Adilabad

district of Andhra Pradesh. Here, many craftsmen known as Nakash

reside. They are involved in Niramal arts, in which scenes from the

Hindu epics, Mahabharata and Ramayana are painted.

¤ Veena Manufacturing

At Bobbili in Andhra Pradesh, the oldest musical instrument,

Saraswati Veena is manufactured. This instrument is even mentioned

in almost all ancient texts. It is an integral part of Carnatic music,

famous all over the world for its melody and harmony.

¤ Handlooms
The handlooms of Andhra Pradesh are of excellent quality. It is also

famous for its fine saris all over the world. Every region of the state

has its own style and weave.

¤ Chirala Textiles

The textiles of Chirala are quite famous. The Chirala textile is made

by using a large quantity of oil, which is used in preparing yarn for

weaving. After the fabric is ready, it is wrapped with wax & clay

before being dyed in selected colors .

¤ Dharmavaram Saris

The Dharmavaram in Andhra Pradesh is famous for silk saris all over

the world. These saris are specially worn on functions. They have

simple, plain borders without much contrast. The borders of these

saris are commonly broad having brocaded gold patterns. The borders

also have butta and the pallus of the saris have exclusive designs.

¤ Eluru Carpets

The Eluru in Andhra Pradesh is famous for its woolen pile carpet

industry. This art from was brought to India by the Persians who

migrated to Andhra Pradesh during the Muhammaddin regime. Later,

they developed the carpet industry here.

¤ Gadwal Saris

Gadwal located in Andhra Pradesh is famous all over the world for its

beautiful saris. The body of the Sari is cotton whereas the border and

pallu are in silk. The cotton and silk fabrics are woven separately and

then attached together.

¤ Ikat Weaving Handlooms

This is a skill that requires a lot of intricacy. It is a style of weaving,

where the yarn is randomly dyed in natural zigzag or geometric

patterns. The Ikat weaving originated in Nalgonda district of andhra

Pradesh. This internationally acclaimed weaving form, is now

practiced mainly in Puttapaka, Pochampalli and Chautuppal villages

of andhra Pradesh.

¤ Mangalagiri Sarees

The Mangalagiri saris and dress materials are made from Mangalgiri

cotton, which is quite popular here. Mangalagiri, located 12 Kms

from Vijayawada is also an important pilgrimage center in Andhra

Pradesh.

¤ Uppada Sarees Handlooms

The Uppada saris are produced in Uppada, a beach town located 20

kms from Kakinada. It is famous for attractively designed cotton

saris. At Peddapuram, 20 kms from Kakinada one can buy delicately

designed silk saris created by local artisans.

Andhra Pradesh is a treasure-trove of a fascinating range of art

forms and traditional crafts, each unique in style, theme, concept,

form and expression.

Through centuries old, these crafts and arts without exception have

displayed innate flexibility and durability. They adapt to the

changing eras and times and till date maintain an enriching and

endearing freshness. Kalamkari with its lucid and colorful depiction

of the epics and landscapes; the lively and lovely kondapalli toys

carved out of soft-wood; Nirmal paintings with their golden hues

and the Bidricraft with silvery contours, have become the cynosure

of not only connoisseurs, but also interior designers.

Folk Paintings

The start of painting in Andhra Pradesh has the most interesting

legend behind it. It is said that Lord Narayan was meditating when

celestial dancing girls tried to disturb him with their beauty and

grace. To teach them a lesson, Lord painted a portrait of a nymph.

The portrait was so beautiful that no woman in Heaven and Earth can

match the beauty of the lady in the painting. The Celestial dancers

were all put to shame when they saw the painting. Lord Vishwakarma

was then instructed on art so that he can impart the knowledge to

earth people. The earliest paintings were all related to mythology

and religion which slowly started to change with time. Though tough

to find now a days, long painted scrolls are the most prized

possessions of an art lover. You can find such scrolls in Cherial in

Warangal District.

Kalamkari and Block Printed Fabrics

Kalamkari is the art of painting on fabrics using a pen. The name

Kalamkari is derived from 'kalam' meaning pen and 'kari' means work.

Like all other art forms, this too started with designs of religious

importance such as images of Gods and scenes from mythology. The

art also flourished under the temple guardianship where it was kept

alive. Earlier the colors for the designs were extracted plants like

indigofera anil and rubia tinctorum but now artificially synthesized

indigo and alizarine are used. The main areas in Andhra Pradesh

where Kalamkari is done are Machilipatnam and Srikalahasti.

Wood Carvings

Wood Carving is among the most complex forms of arts and crafts.

Not only does it require high level of skills, a carpenter needs to have

a lot of perseverance and hard work. In Andhra Pradesh, idols of Gods

and mythological figures are the main pieces. However, wooden

balustrades, arches, even combs trinkets and musical instruments are

also made. There are no specific areas in Andhra Pradesh that are

famous for wood carvings. You will finds wooden craft items in all

parts of the state.

Hyderabad Pearls

Hyderabad is one city that is extremely modern while still keeping its

age old culture and traditions alive. Pearls in Hyderabad have been a

part of Hyderabad since the time of Nizams. The rich Nizams got

interested in Pearls and brought in the most expensive and exclusive

pearls from all around the world. Since then Hyderabad is famously

referred to as 'Pearl City of India'. There are different types of pearls

which are distinguished according to their shape and luster. The

pearls are then used in various ornaments like bracelets, necklaces,

ear rings, rings etc. You can pick the best pearl studded jewelery for

yourself from the many famous pearl shops in the Charminar shopping

market which have been in operation since many years.

Metal Works

There are different types of metal works practiced in Andhra

Pradesh. Bronze works and brassware done in the state are famous

all over the country. Statues of gods and goddesses are made of

bronze and for other metal crafts, brass is the main metal. There is a

form of metal work called Dokra which is prevalent in a small village

called Adilabad. It is famous for the fact that no two items are

similar and each has its own speciality. Statues of tribal gods and

figures of many animal are the main features of this art form.

Another uniqueness of Dokra is that although it is primarily made of

brass, it has a clay core inside the metal casting. Pembarthi is

another small village in Andhra Pradesh that is known throughout

India for its exquisite brass handicrafts.

There are not many states in India that come close to giving the same

kind of variety and same level of quality. The culturally rich past of
Andhra Pradesh is still very evident in the arts and craft items, which

gives a very exclusive feel to it. Tread through the traditional

markets of Andhra Pradesh and gift yourself some exquisite

memorabilia to take back home.

SWOT Analysis

Strengths:

• Large, diversified and potential market.

• There is large product variety and range is available because of

diversified culture.

• It has strong, diversified and supportive retail infrastructure.

• Diversified product range that service different market.

• Cheap labour rates that result to competitive price.

• Need low capital investment.

• There is flexible production flexibility.

• Low barriers of new entry.

• Easy creation and development of production centres.

• There is no need for macro-investment.

 • Industry provides potential sources of employment.

• Products are high value added, and handicrafts have various

applications.

• It is the potential source of foreign revenue because of higher

export.

Weaknesses:

• Lack of infrastructure and communication facilities.

• Unawareness about international requirements and market.

• Lack of co-ordination between government bodies and private

players.

• Inadequate information of new technology.

• Inadequate information of current market trends.

• Less interest of young people in craft industry.

• Lack of skilled labour.

• Still confined to rural areas and small cities and untapped

market.

• Lack of promotion of products.

Opportunities:

• Rising demand for handicraft products in developed countries

such as USA, Canada, Britain, France, Germany, Italy etc.

• Developing fashion industry requires handicrafts products.

• Development of sectors like Retail, Real Estate that offers great

requirements of handicrafts products.

• Development of domestic and international tourism sector.

• E-Commerce and Internet are emerged as promissory

distribution channels to market and sell the craft products.

Threats:

• Competition in domestic market.

• Quality products produced by competing countries like China,

South Africa.

• Better Trade terms offered by competing countries.

• Increased and better technological support and R and D facility

in competing countries.
Limitations of Handicraft Industry

• Inspite of having diversified products, some part of Indian

market is still untapped and market is price sensitive.

• Products are high priced in big and metro cities, which are

beyond the reach of people belonging middle and lower middle

class.

• Craft producers have to compete on price, quality and delivery

for different segments.

• There is poor promotion for craft products in national market.

• There is lack of awareness about new traditions and among

craftsmen.

• It is difficult to balance the cultural and commercial value of

handicraft products.

• Inadequate supply chain management and distribution reduces

the sector’s commercial viability and economic sustainability.

• Lack of Technological support and training.

• Lack of Research and development for key handicraft sectors

like, ceramics, paper making etc.

 • There is shortage of skilled craftsmen and labour to match the

competition.

• Lack of ability to produce in large scale and create economies

of scale.

• Inadequate material testing and performance measurement.

• Inappropriate energy supplies to rural and sub-urban areas.

• Untapped and inaccessible market due to poor transportation

infrastructure.

• There are inadequate training centres to develop skilled

craftsmen.

Possible Initiatives should be taken to

overcome the limitations of industry

• The primary objective is to create an environment that helps

the industry to compete on the global basis.

• To build the environment that will focus on: Wealth Creation,

Infrastructure Development, Training, Technological

Development, and Poverty Alleviation etc. to enhance the

sector performance.
• Awareness should be increased among craftsmen and customers

through Trade Events, Seminars, Craft Forums and

advertisements.

• More training centres should be opened to provide proper

training to craft persons.

• There should be more trade shows to facilitate craft producers

to access the market.

• Transportation infrastructure should be improved to access the

untapped market that would be beneficial to reduce the

transportation cost.

• Promotion of cultural tradition and heritage.

• Promotion of Indian Tourism to attract the foreign customers.

• Developing technologies to recycle natural resources to produce

new products and ensure waste minimization, product

durability and reliability.

• Promoting Partnership and collaboration with private sector.

• There should be market platform for craft producers belonging

to rural areas to market their products.

• Development of electronic platform by using internet to provide

information, database, and marketing and distribution solution.

 • Increased Private participation in industry.

• There should be optimized distribution network and supply

chain management.

• Through improving labour productivity in a high labour intensive

and price competitive market.

• There should be proper balance between cultural and

commercial value of craft products to sustain business

opportunities.

• Through using low cost production methods the sustainability of

small business can be improved.

Value Addition Model

The performance of Handicraft Industry can be improved and the

greater value addition can be done by implementing following

model:

• Identify the Potential Market

• Making Effective Business Plan and Refinement in existing

business
• Test Marketing to test the initial potential of new products in

market

• Effective Operational and Technological Up gradation

• Hiring skilled manpower, provide training and awareness about

latest technology and market trends and effective management.

• Hiring skilled manpower, provide training and awareness about

latest technology and market trends.

• Cost Effective Production; Maintain Quality Standards, and

Packaging.

• Set the Costing and Pricing with Quality taken to be

consideration

• Cost Effective Distribution Development using both Physical and

Electronic Distribution Channels (Internet, e-Commerce)

• Both National and International Market Development for better

Export and Foreign Revenue.

Wooden Handicraft Industrial Overview

Wooden handicrafts are specialized skills passed on from one

generation to the next. The term 'wooden handicrafts' refers to a

 wide range of wooden items carrying utilitarian and artistic value

that are made by hand, or with the use of simple tools. Indian

wooden handicrafts reflect unmatched workmanship, fine designs,

and subtle elegance. This makes India one of the chief exporters of

wooden handicrafts in the world market.

According to the classification of Indian industries, a small scale

industry is defined as an industry that is:

• Not registered under the Factory Act.

• Investment in fixed assets does not exceed Rs 60 lakhs.

Small scale industries are classified into two

categories:

• Modern small scale industries like power looms etc.

• Traditional industries like handlooms, sericulture, khadi, coir,

and handicrafts.

Wooden handicrafts fall in the category of small scale traditional

industries.

Role in Indian Economy:

The wooden handicrafts industry plays an important role in the Indian

economy. This industry requires low capital investment and other

resources. The wooden handicraft sector provides a high ratio of

value addition, and has emerged as one of the major sources of

foreign exchange earnings for India.

Indian wooden handicrafts are much sought after the world over, and

form an important export commodity of India. Although India's

handicraft exports show a consistent increase of fifteen percent

every year, its share in the international market is not more than two

percent.

The Indian wooden handicraft sector is the second largest

employment provider (after agriculture). It employs about six million

artisans. Women constitute a large section of the handicrafts

industry, including people belonging to the weaker sections of

society.

CONCLUSION:
The Indian Handicraft Industry stands a unique place among all other

industries. It represents the rich culture, tradition and heritage of

India. India’s rich cultural diversity and heritage provides a unique

and huge resource for developing craft products. The Indian

Handicraft Industry is showing continuous growth rate of 15% every

year and it is one of the most important segment of decentralized

sector in India.

Most of the part of industry operates in rural and semi urban areas

throughout the country and have large and potential in Indian &

International market. Indian Handicraft Industry provides wide

range of products because of country’s diversified culture,

traditions and heritage. There is huge demand of Indian Handicraft

products in international market. Industry provides ample

opportunities for employment to people belonging to backward and

weaker classes of society. However, Indian Handicraft Industry has

the status of cottage industry in India, but it has shown promising

growth and evolved as one of the major revenue generator over the

years. It has shown continuous growth at the rate of 15-20% over

the years and contributes major role for export and foreign

earnings.
Low capital investment, Cheap and skilled labour, Diversified product

portfolio, Flexible Production are few important features of Indian

Handicraft Industry. However, Lack of Infrastructure & Technological

support, Lack of awareness of international and new trends and Poor

Promotional campaigns are a few drawbacks of industry which needs

to be overcome. It is estimated that Handicraft Industry in India is all

set to grow with rapid rate in future and contribute its share towards

economic development handsomely.

Aspects looked before going into global:

1.)Global environment for handicraft jewellery:

Handicraft jewellery has found a place in this growing global

market and is very much in demand across the world because of

its quality and design.

Handicraft jewellery is nowadays is considered to be a fashion

statement in developed country because of its unique design and

the countries are as follows with their respective demand.

 D e m a n d fo r H a n d ic ra fts

35 %
30 %
25 %
Percentage
20 %
15 %
10 %
5%
0%
USA UK G e rm a ny F ra n c e Jap an Ita ly

C o u n try

Political factor:

Countries like USA and UK are fully developed nations and have a

democratic political environment which means that there aren’t

any pressures on trading countries as the trading policies are very

favorable and encouraging for the Indian handicraft jewellery

traders to export their goods to USA and UK.

Similarly, In 2000, the U.S. consumer market for fine and

costume jewelry rose 5 percent over 1999 levels to $39.8 billion;

today, the United States is the Largest market for jewelry in the

world. It is followed by the EU, with total sales in 2003 estimated

at $25 billion, an increase of 8 percent between 1999 and 2003.

According to retailers, although Ceramics and glass have

historically been their number one selling category; it is now

jewelry and other fashion accessories such as belts and handbags.

European Union (EU) under whom Germany does trading is very

encouraging about trading policies with SAARC as under whom

India comes which makes less restrictive policies of trading for

India to trade with a country like Germany.

Cultural factors:

Handicraft jewellery being hand-made and unique has a lot of

hard work put in it which makes it costly and a trouble to afford.

In countries like France, fashion is like water to people, which

means precious to them in day to day life. Thus, in France

demand is not huge as there are already many fashion jewellery

categories already in their domestic market and same goes for

Italy.
But, USA and UK don’t have any fashion industry of their own and

rely on other exporting countries for fashion ornaments like

Indian made handicraft jewellery and this is reason that the

demand is huge.

Not only this, but citizens of USA and UK are fond of being unique

and they see that handicraft jewellery is hand made and

different from other type of jewellery. Culture of these countries

sees uniqueness and different things is positive light.

Economical factors:

USA, UK, and Germany being developed countries are

economically stable and have a good economic infrastructure

which derives that poverty percentage is low and purchasing

power of people in these countries is high.

For eg: USA is known for maximum number of millionaires and

billionaires in this world.

Due to the high purchasing power, people are able to purchase

costly handicraft jewellery as per their requirements.

This clearly means “More the money, more the buying power of

consumers”

These countries have stable economies, so people are not

reluctant about spending their income on lavish and luxurious

ornaments.

Social factors:

In the above stated countries, people are very conscious about

their clothing and whether their jewellery is matching their

clothing or not and whether it is different from what others are

wearing or not, be it any kind social gathering.

This type of fashion conscious consumers who are large in number

have raised the demand of handicraft jewellery and increased its

market.