Handicraft

INDIAN HANDICRAFT INDUSTRY
INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA
 NAME: - ANIKETH PRABHU
 ADDRESS: - 202, SARVODAYA POOJA, OPP: SHIVA TEMPLE,

PATHARLI, DOMBIVLI (E)-421201
 CONTACT NO: - 9869340983
 REGISTRATION NO: - WRO0681610
 NAME OF ITT CENTER

o ITT CENTER- DOMBIVLI
o BRANCH- KALYAN-DOMBIVLI
 BRANCH CODE: - WI032
 BATCH NO: - 06/22/90
 PROJECT NAME: - INDIAN HANDICRAFT INDUSTRY
 DATE OF SUBMISSION: - 11TH JULY,2022
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INDEX
Contents
SOURCES.........................................................................................................5
INTRODUCTION...............................................................................................6
INDIAN HANDICRAFT OVERVIEW....................................................................8
THE IMPORTANCE OF HANDICRAFT................................................................9
HANDICRAFTS CENTERS................................................................................10
PROBLEMS OF INDIAN HANDICRAFTS...........................................................12
INDIAN HANDICRAFTS INDUSTRY&EXPORT..................................................16
TOP 10 HANDICRAFT COMPANIES IN INDIA..................................................18
COVID-19 IMPACT ON HANDICRAFTS SECTOR...............................................23
HANDICRADT PRODUCTS AND THEIR SPECIFICATION....................................26
TAX BENEFIT FOR HANDICRAFT BUSINESS.....................................................44
CONCLUSION.................................................................................................47
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SOURCES
1. http://www.handicrafts.nic.in/Export.aspx?
MID=jdLumi2w7Hxz4+VktNGHzA==
2. https://www.ibef.org/blogs/india-s-handicraft-crafts-a-sector-gaining-
momentum
3. https://www.indiantradeportal.in/vs.jsp?lang=0&id=0,31,24100,24111
4. http://www.handicrafts.nic.in/Page.aspx?MID=BOII5FUynjpl5RZJJ8nW1g
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INTRODUCTION
Handicrafts are unique expressions and represent a
culture, tradition and heritage of a country. The
Handicraft Industry is one of the important
productive sector. 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.
Handicraft is a type of craft where people make things using only their hands
or basic tools. The items are usually decorative and have a particular use.
Usually the term refers to traditional methods of making things.
Indian Handicraft Industry
Crafts are unique expressions that represent a culture, tradition and the
heritage of a country. India is well known for its exotic crafts legacy and
tradition. It is the land of art and crafts, a country of rich culture, history and
traditions. A wide range of Indian Crafts represents the diversity of crafts
tradition in India. Variety of designs and finishes are available in Indian market
that reflects excellent artistic skills of craftsmen are great in demand globally.
India is one of the important suppliers of handicrafts to the world market. The
Indian handicrafts industry is spread all over the country in rural and urban
areas. Thousands of skilled artisans are engaged in crafts work.
Handicrafts Industry is playing a major role in the development of Indian
economy. This sector is economically important from the point of low capital
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investment, high ratio of value addition, and high potential for export and
foreign exchange earnings for India.
As per the latest updates, there are more than 23 million craftspeople in India
today engaged in the growth of Indian handicrafts industry. Few more details:
1. Second largest employment sector in India, second only to Agriculture.
2. More than 23 Million craftspeople.
3. 63% of exports turnover.
4. 9 items dominate exports of handicrafts.
These nine items which have extra edge over other products include art metal
ware, wood ware, hand-printed textiles, hand-knotted and embroidered
textiles, leather goods, stoneware, carpets and floor coverings.
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INDIAN HANDICRAFT OVERVIEW

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 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 is 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.
Though 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.
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THE IMPORTANCE OF HANDICRAFT

1. 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 rich traditional art, heritage and culture, traditional skills and
talents which are associated with people’s lifestyle and history.
2. 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
Handicrafts have great potential, as they hold the key for sustaining not only
the existing set of millions of artisans spread over length and breadth of the
country, but also for the increasingly large number of new entrants in the
crafts activity. Presently, handicrafts contribute substantially to employment
generation and exports.
The Handicraft sector has, however, suffered due to its being unorganized,
with the additional constraints of lack of education, low capital, and poor
exposure to new technologies, absence of market intelligence, and a poor
institutional framework. In spite of these constraints, sector has witnessed a
significant growth of 3 % annually.
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HANDICRAFTS CENTERS
Handicraft industry in India is spread throughout the country
with greater concentration in rural and suburban areas of
country.
1. Metal ware and Bronze sculpture:
Major Manufacturing units are located in Moradabad, Sambal,
Aligarh, Jodhpur, Jaipur, Delhi, Thanjavur, Jagadhari etc.
2. Wooden art ware and sculpture:

Major Manufacturing units are located in Saharanpur, Nagina,
Hoshiarpur, Srinagar, Amritsar, Jaipur, Jodhpur, Bangalore, Mysore,
Behrampur etc.
3. Embroidered item:
Manufacturing Units are located in Kutch, Jaisalmer, Baroda,
Lucknow, Jodhpur, Agra, Amritsar, Kula and Srinagar.
4. Marble and soft stones crafts:

Agra, Madras, Baster and Jodhpur are famous for these craft
products.
5. Paper Crafts:
These manufacturing units are located in places of Kashmir and
Jaipur.
6. Hand printed textiles and scarves:

Aroha, Jodhpur, Jaipur, Farrukhabad, Bagru and Sanganer consist of
manufacturing units.
7. Zari and sari products are manufactured at units located at Surat,

Agra, Varanasi and Amritsar.
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8. Imitation Jewelry: Parts of Delhi, Moradabad, Sambhal, Jaipur and
Kohima consist of manufacturing units for these jewelry products.
CRAFTS CONCENTRATION AREAS
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PROBLEMS OF INDIAN HANDICRAFTS
1. The mass-produced goods are steadily replacing utility items of

daily use made by craftsmen.
2. Limited public awareness of the cost-effectiveness,
functionality and range of craft products.
3. The urban consumer does not have access to many of the
handicrafts products.
4. Crafts people are bound in their struggle for survival to money-
lenders, traders or middlemen.
5. For credit and raw materials and they are obliged to sell their
products to them at a minimal price decreasing their interest
towards the traditional arts and crafts.
6. Unorganized production: As a largely unorganized sector,
handicrafts faces problems such as a paucity of professional
infrastructure such as work sheds, storage space, shipping and
packing facilities. Low education: Many crafts require the entire
household to participate in production in some capacity.
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FINANCIAL ASSISTANCE TO HANDICRAFT

INDUSTRY
The Government is also providing financial assistance for setting up Mega
clusters to create world-class infrastructure to integrate the production
chain by filling the gaps to fulfill the felt needs of the existing clusters and
to increase production/exports and to generate employment
opportunities in the textile industry. The details of the
sanctioned/proposed mega clusters/Block Level Clusters is given below:
1. Under Comprehensive Handicrafts Cluster Development Scheme 9 mega
Clusters have been sanctioned viz. Moradabad, Narsapur, J&K Srinagar
Carpet, J&K other than carpet, Lucknow, Bareilly, Jodhpur, Mirzapur-
Bhadohi, and Kutchh-Bhuj.
2. Under National Handloom Development Programme and

Comprehensive Handlooms Cluster Development Scheme, 412 Block
Level Clusters have been sanctioned since 2015-16 to 2018-19 in
different states viz. Arunchal Pradesh, Assam, Bihar, Jharkhand,
Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Sikkim, Tripura, West
Bengal, Chattisgarh, Gujarat, Madhya Pradesh, Maharashtra, Delhi,
Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar
Pradesh, Uttarakhand, Andhra Pradesh, Karnataka, Kerala, Tamil Nadu
and Telangana.
3. 5 mega-clusters have been sanctioned under Comprehensive

Powerloom Cluster Development Scheme(CPCDS) at following clusters
viz. Erode (Tamil Nadu), Bhilwara (Rajasthan), Ichalkaranji
(Maharashtra), Surat(Gujarat), Solapur(Maharashtra).
4. 5 mega-clusters have been sanctioned under Comprehensive

Powerloom Cluster Development Scheme(CPCDS) at following clusters
viz. Erode (Tamil Nadu), Bhilwara (Rajasthan), Ichalkaranji
(Maharashtra), Surat(Gujarat), Solapur(Maharashtra)
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5. Government has also decided to setup one Silk Mega Cluster at

Mysore(Karnataka).
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Details of Schemes providing Financial Assistance/Incentives to
Handicrafts/Textiles Workers: -
1. Direct Benefit to Artisans Scheme: - This scheme provides financial

assistance in the old age and social security to handicrafts artisans who
are the recipient of Ship Guru Award/ National Award/ Nation Merit
Certificate hold/ State Award in handicrafts not less than 60 years and
their annual income should exceed to Rest. 50,000/-. financial assistance
of Rest. 3,500/- P.M. is given to Master Craftsperson in indigent
circumstances.
2. Margin money: - Margin Money for the artisans availing Mudra Loan
under Director Benefit to artisan’s component has been included during
2018-19 to ensure the availability of concessional credit to artisans. 20%
of MUDRA loan amount will be given as Margin money in their loan
amount not exceeding to Rest. 10,000/-
3. Comprehensive Handicrafts Cluster Development Scheme(CHCDS): -

Under this scheme, the artisans/exporters/Manufacturers are provided
good quality raw material at subsidized rates (lower than market price)
to enhance their competitiveness globally and under Infrastructure and
Technology Support Scheme raw material is provided to artisans at a
subsidized rate 8-10 % less than market rates.
4. Amended Technology Up-gradation Fund Scheme (ATUFS): The

amended Scheme was launched in January 2016 with an outlay of Rest
17822 Crores for technology upgradation of textiles industry with one-
time capital subsidy for eligible machinery. The scheme has been
designed to mobilize new investment of about Rest 95 000 cry and
employment for 35 lakh persons by the year 2022.
5. Weavers’ MUDRA Scheme: Under the Weavers’ Mudra Scheme, credit at

concessional interest rate of 6% is provided to the handloom weavers.
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Margin money assistance to a maximum of Rest. 10,000 per weaver and

credit guarantee for a period of 3 years is also provided.
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6. Comprehensive Handloom Cluster Development Scheme: The

Comprehensive Handloom Cluster Development Scheme (CHCDS) is
implemented for development of Mega Handloom Clusters covering at
least 15000 to 25,000 handlooms and financial assistance as Go share
from Rest. 40.00 to Rs.70.00 crore is in a period of 5 years.
7. Yarn Supply Scheme: Yarn Supply Scheme is being implemented

throughout the country to make available all types of yarn at Mill Gate
Price. Under the Scheme freight is reimbursed and depot operating
charges @2% is given to depot operating agencies. A component of 10%
price subsidy also exists on hank yarn, which is applicable on cotton,
domestic silk and woolen yarn with quantity caps.
8. National Handloom Development Programme(NHDP): These

programmers aim at holistic development of handloom and handicrafts
clusters through integrated approach. The strategic interventions under
the programmer include financial assistance for new upgraded looms and
accessories, design innovation, product and infrastructure development,
skill upgradation, training, setting up of Mega clusters for increasing
manufacturing and exports, easy access to working capital through
customized Mudra loans for weavers and direct marketing support to
weavers.
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INDIAN HANDICRAFTS
INDUSTRY&EXPORT
Handicraft exports from India increased by almost 2 percent year-on-
year to US$ 3.39 billion in FY20 (till February 2020).
Handicraft is one of the most important sectors in the Indian economy
employing more than seven million people. The country produces
woodware, art metal wares, hand printed textiles, embroidered goods,
sari goods, imitation jeweler, sculptures, pottery, glassware, attars,
agarbattis, etc.
PRODUCT-WISE PERCENTAGE INCREASE IN EX -

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EXPORT TRANDS
India is one of the largest handicraft exporting countries. In March 2022, the
total handicraft export excluding handmade carpets from India was US$ 174.26
million which was an 8% increase from February 2022. During 2021-22, the
total exports of Indian handicrafts were valued at US$ 4.35 billion; a 25.7%
increase from the previous year.
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India's handmade exports (US$ billion)
2021-2022
2020-2021
2019-2020
2018-2019
2017-2018
2016-2017
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
EXPORT DESTINATION
The major handicraft export destination for India are the US, the UK, LAC,
Australia, Canada, France, Germany, Italy, Japan, Netherlands, UAE and
Switzerland. The US is the top importer of Indian handicrafts with a share of
38% of the total exports during 2020-21. The UK, UAE, Germany and
Netherlands are among the largest carpet export destinations for India with a
share of about 6.4%, 6%, 6% and 5.5% respectively.
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country wise share of India's handicraft

exports (2020-21)
31%
38%
6%
6% 6%
6% 4%3%
USA UK AUSTRALIA FRANCE

GERMANY NETHERLAND UAE OTHERS
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TOP 10 HANDICRAFT COMPANIES IN

INDIA
1. ASHA HANDICRAFT ASSOCIATION.
Establishment: 1975
Headquarter: Thane, Maharashtra
Website: https://ashahandicrafts.in/
Asha Handicraft Association is an organization that provides marketing

support to Indian artisans in the global market for preserving the art and
craft of India. The company has partnered with fair trade importers for
selling its wide range of handicrafts products worldwide. Its product
offerings include lifestyle accessories, home décor, office stationery,
corporate gifts, and toys and games. These products are generally
manufactured using wood, textile, and ceramic that reflect the authentic
design, style, and colors of the rich Indian heritage. Along with this, it is
further involved in regular capacity building and training workshops for
improving the skills of artisan communities.
2. CRAFT MAESTROS
Establishment: 2018
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Headquarters: Guru gram,

Haryana Website: https://www.craftmaestros.com/
Craft Maestros is primarily involved in selling handlooms and handicrafts

designed by highly recognized master artisans, including Padmashree
awardees, ship gurus, and national award winners. It generally offers
beaded Jeweler, airy embroidery, bone carving, bone inlay on wood,
decorative accents, stationeries, Madhubani painting, theta, stone art, kilim
rugs, and shawls and wraps. The company offers authentic and premium
quality products through the company’s website across the globe. Along
with this, it has also partnered with Teamwork Art, a Delhi-based event
management company, to launch an e-commerce platform named Earth
Fables for Indian artisans for showcasing their creativity.
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3. DEVELOPMENT COMMISSIONER (HANDICRAFTS)

Establishment: 1975
Headquarters: New Delhi
Website: http://www.handicrafts.nic.in/
Development Commissioner (Handicrafts) is a government agency that
functions under the administrative control of the Ministry of Textiles,
Government of India. The agency is majorly involved in the promotion,
development, and export of Indian handicrafts that are manufactured by
cluster artisans from across the country. It also provides technical and
financial assistance to craftsmen to solve their economic and social
problems while uplifting the handicraft sector across India. It has
established several field units and regional offices that are situated in
Kolkata, Mumbai, Chennai, Lucknow, New Delhi, and Guwahati.
4. GATHA HANDICRAFTS PRIVATE LIMITED

Establishment: 2009
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Headquarters: Ahmedabad, Gujarat

Website: https://gaatha.com/
Gatha Handicrafts Private Limited is a non-government company that is
majorly involved in the selling of handcrafted products. The products range
includes printed chancery and maheshwari saree, clay dolls, handmade
photo frames, moon grass baskets, wall hanging and fans, leather puppets,
and calamari durra, which are sold via the company’s website. Additionally,
the company is also involved in research and archive activities, assisting
artisans in creating modern-day relevant designs, and providing elementary
training for pricing, packaging, basic banking, and local shipping. Along with
this, it also participates in co-creation projects, wherein the company hosts
co-creation sessions for craftsmen across the country.
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5. RAMNARAYAN BLUE ART POTTERY
Establishment: 1980
Headquarters: Jaipur, Rajasthan
Ram Narayan Blue Art Pottery is an organization established for craftsmen
mainly belonging to scheduled castes (SC) and scheduled tribes (ST). The
company is generally involved in selling supreme quality inexpensive home
décor items, including bowls, trays, planters, and hanging plates. Its
products are manufactured using the technique of blue pottery, which is a
traditional craft of Rajasthan. The products do not include clay; it is rather
produced from quartz, Multan mite, gum, and water that are later colored
with blue dye. The company markets its products via online platforms in
India and exports to New York, Canada, California, and the Netherlands.
6. SASHA
Establishment: 1978
Headquarters: Kolkata, West Bengal
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Website: https://sashaworld.com/
Sasha is a fair trade organization that is majorly engaged in providing
domestic and international market access, design, and technical support to
small craft producers and artisan enterprises of India. The company
operates two organizations named Sarba Shanti Ayog (SSA) and Sasha
Association of Craft Producers (SACP) that work for the well-being of
craftsmen communities. Its product portfolios are categorized under festive
gifts, bath and wellness, home and living, and fashion. The products are
distributed internationally through the company’s website across the
United States, the United Kingdom, Austria, France, Italy, Japan, and New
Zealand. It also sells its products through fair trade shops, which are
situated in Delhi and Kolkata.
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7. S. SUNDARAVADIVEL AND COMPANY
Establishment: 1964
Headquarters: Kumbakonam, Tamil Nadu
Website: http://southindianhandicrafts.co.in/
S. Sundaravadivel and Company is a pioneer in the manufacturing and
export of a wide range of handicrafts items that are produced using pure
silver, gold, copper, bronze, and brass. Its products include moolavar
statues, wooden vahanam, temple jewelries, traditional brass ornamental
lamps, pooja items, and paintings for the temple and home pooja purposes.
Along with this, the company is also engaged in customized manufacturing
of handicrafts products for temples, offices, and hotels. The company’s
manufacturing facility and business operations are situated in a prominent
location in Kumbakonam Ho. It is also involved in the wholesale selling of
glass articles, hotel and bars wares, and cutleries.
8. THE INDIA CRAFT HOUSE
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Establishment: 2013
Headquarters: Gurgaon, Haryana
Website: https://theindiacrafthouse.com/
The India Craft House is a social enterprise that is majorly engaged in creating a
platform and supporting Indian artisans. The company follows an inventory-
based model, wherein it buys products directly from craftsmen rather than
functioning as a marketplace. It is involved in alliances and engagements with
enterprises, artisans, non-governmental organizations (NGOs), and local craft
bodies in an attempt to strengthen its market position and reach a wider
audience. Apart from this, the company also provides personalized handicrafts
products for corporate gifting, weddings, and decors via its online website
across the globe.
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9. TJORI
Establishment: 2013
Headquarter: Delhi
Website: https://www.tjori.com/
Tjori is a clothing brand that is primarily involved in manufacturing and
selling fusion-based fashion items. The company generally utilizes ethical
and authentic raw materials that are sourced directly from weavers. It has
collaborated directly with suppliers, manufacturers, craftsmen, and artisans
with a vision to improve and preserve the Indian traditional lifestyle. Along
with this, the company majorly focuses on introducing sustainable and
environment-friendly items. Its products range includes ethnic wear, skin
care products, cookware, décor pieces, and living and bedroom products,
which the company markets through its website across the globe.
10. U.P. HANDICRAFTS DEVELOPMENT AND MARKETING

CORPORATIONS LTD.
Establishment: 1966
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Headquarters: Lucknow, Uttar Pradesh

Website: http://www.uphdmc.in/
U.P. Handicrafts Development and Marketing Corporations Ltd. is a
handicraft chamber primarily engaged in the tanning and dressing of
leather. Its product range is majorly categorized into metal, wood, leather,
carpet, pottery, marble, silk, jewellery, bone, glass beads, patri, block
printing, chikankari and zardozi. Its main objective is to promote and sell
handicraft items produced by the artisans of Uttar Pradesh. The company
generally market its products via its physical retail shop named Gangotri
Emporia, which is established in major cities of the country, including
Hyderabad, New Delhi, Mumbai, Ahmedabad, Lucknow, Kanpur, Nagpur
and Kolkata.
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COVID-19 IMPACT ON HANDICRAFTS

SECTOR
The timing could not have been worse. A falling economy, unemployment,
reduced spending, the pandemic and subsequent lockdown have had a
devastating impact on the handicrafts sector. Artisans and weavers are the
third largest segment among the poor. Most of their products are "non-
essential" which could be the reason why their alarming situation is getting
very little visibility despite the call for "vocal for local" and 'Atmanirbhar
Bharat".
Darbar Sahitya Sansada (DSS) works with eight hundred artisans in one
hundred and fifty villages covering four districts of Odisha. These artisans make
natural fibre products from coir and grass, applique products from cloth,
terracotta products from clay, dhokra brass jewellery, and the famous
Pattachitra paintings. DSS helps them with accessing raw material, design,
market, and in availing social security benefits. Artisans earned between Rs
4000-Rs 7000 before the pandemic.
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Since the lockdown, production has stopped completely. Huge unsold

inventory has piled up. There has been no sale either through exhibitions or
through orders. They have no capital to reinvest. The artisans have neither
food for daily consumption nor enough savings to meet medical expenses. DSS
distributed provisions but could only reach four hundred out of the eight
hundred artisans. It continues to appeal to various organisations, individuals,
and platforms to raise money for relief distribution. Most artisans are now
looking for agricultural work or to migrate again.
According to Kedareswar Chaudhury, CEO, DSS, relief in terms of provisions
needs to continue until the lockdown is completely lifted and artisans can
resume work. There is a need for capital support in the form of grants or loans
with low interest rates to revive production. There is an urgent need of
handholding support for online marketing, design and cataloguing. More than
ever, artisans need health insurance and social security now.
Abhihaara, a social enterprise, works with hundreds of artisans in three
clusters of Telengana and Andhra Pradesh on handloom weaving and wooden
toy making. It helps the artisans with contemporary designs, provides raw
material, pays fair wages, buys the products, and markets the same with 25%
margin to meet its own overheads. The monthly income of artisans before the
pandemic and lockdown was between Rs 6000-Rs 20000.
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Since the lockdown and social distancing resulted in minimised production,

Malkha supported the producers by providing basic income from its own
reserve.
A KPMG study for the National Skill Development Corporation (NSDC) (2013-
17, 2017-22) had estimated that approximately 7.3 million people depend on
handicraft and allied activities for livelihood.
The handicraft and handloom sector in India is a Rs 24,300-crore industry and
contributes nearly Rs 10,000 crore annually in export earnings. In the last
financial year, the handicraft sector earned Rs 36,7898 crore through exports
and Rs 12,678 crore in the domestic market, handloom sector earned Rs
2,280.18 crore in exports and Rs 2,75,000 crore in domestic trade. TOP
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The 12th Five Year Plan had projected it would become the largest non-farm
sector in rural India, swelling its workforce by 10 per cent, doubling the output
and exporting 18 per cent more during 2012-17.
It is unfortunate that both All India Handloom Board and All India Handicrafts
Board were abolished on July 27 and August 4 2020 by the central government
without giving any reason or putting any alternative in place. Both these
institutions connected the artisans with the government. They existed to
facilitate better understanding, coordination and initiate actions that develop a
favorable ecosystem for the local and handmade products.
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HANDICRADT PRODUCTS AND THEIR

SPECIFICATION.
1. LEATHER FOOTWEAR
The leather industry, including leather footwear, is one of the oldest
traditional industries in India. India has a capacity of producing about
900 million pairs of leather footwear and 100 pairs of leather shoe
uppers44. Leather and allied industries in India play an important role in
terms of providing employment to a large number of artisans and also
earn foreign exchange through exports.
i) Main clusters: The major production centers in India are Chennai and
Ranipet in Tamil Nadu, Mumbai in Maharashtra, Agra, Lucknow and
Kanpur in Uttar Pradesh, Jalandhar in Punjab, Delhi, Karnal and
Faridabad in Haryana, Kolkata in West Bengal, Jaipur and Jodhpur in
Rajasthan, Himachal Pradesh, Odisha, and Calicut in Kerala.
ii) Raw materials used:- Hides of cattle,

buffalo, sheep and goat are the main
raw materialsused for leather
footwear production. Generally, it
takes 7 to 21 days for hides to reach
the tannery after the animal has been
skinned. Other raw materials used for manufacturing leather
footwear are synthetic materials, laces, adhesives, MCR (micro
cellular rubber) sheet, PVC (polyvinyl chloride) & TPR (thermo plastic
rubber) unit soles.
iii) Finished product
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2) CARPET
Carpet industry is one of the oldest industries in
India, and is primarily export oriented industry.
Various kinds of carpets are manufactured in India.
These include hand-knotted woolen carpets, tufted
woolen carpets, handmade woolen durries, and pure
silk carpets.
There different designs hold different meanings:
Circle - Eternity
Zigzag - Water and Lightening
Swastika - Guiding light in darkness Meandering line - Continuity of life
Tree-Bounty
Entire carpet - Emblem of Eternity
Entire pattern - Visible world of change.
i) Main cluster:- Over the years, various carpet weaving center have
emerged in India. Each center has its own competitive advantage.
Major centers of carpet production are Bhadohi, Varanasi, Mirzapur,
Agra, Jaipur, Bikaner, Kashmir, and Panipat, Gwalior, West Bengal,
Uttarakhand, Karnataka and Elluru in Andhra Pradesh.
ii) Artians involved:- Indian carpet industry has over 2,500 exporters-
cum-manufacturers and two million artisans.
iii) Raw materials used:- Major raw materials used for carpet
manufacturing are fiber and or yarn form, dyes, chemicals, auxiliaries
and ancillary materials.
iv) Finished product:-
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28 | P a g e
3) RUGS & DURRIES

India is one the leading producers of rugs in the
world. Various kinds of rugs produced in India
are namda (felted rugs), gabba (embroidered
rugs), wooden pile rugs, cotton rugs, etc.
When compared to rugs and carpets, durries are
light, often
reversible, and usually made with cotton. Durries
have found daily use in rural villages of India.
Different parts of India have localized durrie
tradition. The panja durrie is amongst multitude
of styles.
i) Main cluster:- Rug production is concentrated in the following
regions: Agra, Bhadoi, Mirzapur in UP, Jaipur in Rajasthan, Panipat in
Haryana, and Kashmir in Jammu and Kashmir. Regions known for
durrie making are Panipat, Bhavani in Tamil Nadu, Navalgund in
Karnataka, Warangal in Andhra Pradesh, and Jaisalmer and Barmer in
Rajasthan.
ii) Raw materials used:- Generally, cotton and wool are used as primary
raw material for durrie making. Main tool used is a vertical frame
composed of two horizontal beams on which the warp is fitted.
iii) Fineshed product:-
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29 | P a g e
4) TEXTILE HANDLOOM
`Handloom industry represents the rich cultural and traditional heritage
unique to India. India is a major handloom producer in the world,
accounting for 85% of the total production globally53. India produces a
variety of products using all kinds of fibers and yarns of varying counts to
produce the widest range of products. Handloom contributes 14.6% to the
total cloth production in the country (excluding wool, silk and yarn). In
2010-11, handloom production stood at 6.9 billion square meters. Further,
the industry has the largest infrastructure with 23.8 lakh weaving looms.
i) Main clusters: There are 470 handloom clusters, of which 230

clusters have more than 1,000 weaving looms. Out of these 230
clusters, 41 clusters have over 25,000 weaving looms55. Major
clusters in India are Bahraich, Bhuj, Karimnagar, Patan, Varanasi,
Nawan, Shaher, Boudh, etc.
ii) Artisans involved: Handloom industry is second largest employment

generator in India, next only to agriculture. It provides employment
to the low income sections of the society, with 86 % handloom
weavers/workers living in rural and semi- urban areas. As per the
Handloom Census of 2009-10, there are 23.8 lakh handlooms,
employing 43.3 lakh handloom weavers and allied workers.
iii) Finished product.
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30 | P a g e
5) TEXTILE HAND EMBROIDERY

In textile hand embroidery, embellishment is
made on fabric with threads and sometimes
with other materials. Various types of hand
embroideries are practiced in India. Each
type of embroidery is different from the
other and has its own beauty and significant
value. Zardozi, one of such embroidery, is
one the world famous textile hand
embroidery craft.
In India there are many popular embroidery clusters such as Chikankari

and
zardozi of Lucknow, katha of Bengal, fulkari of Punjab, kutchi embroidery
of Gujarat and kashidakari of Kashmir.
Zardozi has been traditionally prevalent in Lucknow and the six
surrounding districts of Barabanki, Unnao, Sitapur, Rae Bareli, Hardoi and
Amethi. Lucknow zardozi has been accorded the Geographical Indication
(GI) registration.
i) Main clusters: In India there are many popular embroidery clusters

such as Chikankari and zardozi of Lucknow, katha of Bengal, fulkari of
Punjab, kutchi embroidery of Gujarat and kashidakari of Kashmir.
Zardozi has been traditionally prevalent in Lucknow and the six
surrounding districts of Barabanki, Unnao, Sitapur, Rae Bareli, Hardoi
and Amethi. Lucknow zardozi has been accorded the Geographical
Indication (GI) registration.
ii) Artisans involved: - The Lucknow zardozi cluster supports an

estimated 1.75 lakh artisans. Around 2 lakh people directly involved
in the supply and value chain in the cluster. Further, the Chikankari
cluster of Lucknow provides employment to 2.5 lakh people.
iii) Raw material used: - Basic materials used for this craft are cotton and
silk threads of various colours, mirrors, beads, metal wire, cotton,
silk, leather, fish skin, teeth, bones, feathers, horn, shells, beetle
wings, tassels, coins. Raw material used for Chikankari embroidery
31 | P a g e
includes untwisted mill yarn (Mega), silk, crepe, organise, cotton,

terry-cotton, chiffon, muslin or Tussah Yarn.
TOP
iv) Finished products:
6) WOOD CARVING
Woodcarving is an ancient craft practiced in India long before the age of
ancient stone sculptural age. It is the artistic practice of shaping and
decorating wooden objects into diverse utilitarian and decorative
handicrafts items. The most common varieties of wood used for this craft.
are teak, salt, oak, ebony, mango, shisha, etc. Wood carving is a time
consuming process. Small items of carved wooden handicrafts may take a
week to be made. Large items requiring elaborate carving may take few
months for their manufacture.
i) Main cluster: - Saharanpur is world famous for its wood carving and is
known as “Shisha Wood Village” or “Wood City” of India. Other
important centres of wood carving in India are Manipur, Bhopal,
Nagpur, Chennai, Madurai, Mysore, etc. Kashmir is famous for walnut
wood carving.
ii) Raw materials used: - Raw materials used for wood carving are wood,
babul god (gum), potassium permanganate, Chandra’s (lac grains in
acid), pharmacy powder (for an antique finish), wood preservative,
varnish, materials for embossing, favicon, zinc, colours.
iii) Finished goods: -
32 | P a g e
TOP
7) WOOD (TURNING AND LACQUER WARE)

Wood turning involves the use of lathe on which a rapidly rotating piece of
wood is shaped with a chisel to create cylinders’ spheres or cones. The
beauty of this craft lies in painting the smooth wooden shapes. Usually,
the turned piece is coated with coloured lacquer. Today, lacquer ware
production has diversified in response to changing markets. It now
includes jewellery, decorative pieces, household utility articles and
educational articles such as skipping rope handles, chess sets, pen holders,
paper weights and rubber stamp holders.
The softwood lacquer ware toy business is on verge of closure due to
government apathy, stringent export norms and rising input costs. The
European Union, Australia and the US demand for certifications and eco-
friendly compliance markings on this craft.
i) Main cluster: - Etikoppaka in Andhra Pradesh is the hometown of

lacquer ware. Other important centres are Ernakulum, Chennapatna,
Chitrakoot, Davanagere, Medak, Sankheda, and Varanasi.
ii) Artisans involved: The Etikoppaka Mutually-Aided Cooperative

Society comprises 165 artisans.
iii) Finished product: -
33 | P a g e
TOP
8) JEWELRY
Jewellery making is considered as the most distinctive and highly artistic
craft in India. India has well-established capabilities for hand-made
jewellery, both in traditional and modern designs. Currently, Indian
34 | P a g e
imitation jewellery market is around INR 8,000 crore,

which is expected to reach INR 15,000 crore
i) Main cluster: - Major centres of handmade

jewellery are Delhi, Moradabad, Sambal, Jaipur,
Kohima (Tribal), Nellore, Mysore, Nalgonda,
Nizamabad, etc.
ii) Artisans involved: Nearly 500,000 goldsmiths and

6,000 diamond processors are estimated to be present in India
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9) TERRACOTTA
Terracotta is similar to pottery, in which craftsperson use local clay
available in river beds to make items such as lamps, candle stands, figures
of deities and animals, etc. Terracotta is the hard, moisture less, partially
burnt clay used for pottery. In this craft, the objects are not made on
potter’s wheel, as done in pottery.
i) Main clusters: - Like pottery, terracotta is also practiced in several

parts of the country.
ii) Raw material used: Apart from clay, other materials used are
starch/gum, mustard oil, paddy husk, grass, dung cakes,
coal/firewood, sand, and ash. Colour and pigments may be used if
required in the article.
35 | P a g e
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10) MUSICAL INSTRUMENTAL

Most of India’s musical instruments need to be made with precision
using very specific materials for different parts of the instrument. Indian
musical instruments have high level of structural design and complexities
to derive the unique sound for making it rhythmic to extract Indian music.
Some of the popular instruments are sitar, flute, Shania, table, sarangi,
and ghatam.
i) Main cluster: - Jodhpur, Ranchi, Tiruchirappalli, Vishakhapatnam, and

Kolhapur are important centres for musical instruments craft
ii) Raw material used: Materials used depend on the type of instrument;
however, some basic materials used are wood, leather (sheep skin,
buffalo skin, goat skin), twine or cotton thread, brass, ivory and yarn.
36 | P a g e
TOP
11.) FOLK PAINTING
Indian Folk paintings are pictorial expressions of village painters which
are marked by the subjects chosen from epics like Ramayana and
Mahabharata, Indian Purina’s as well as daily events. There are several
vibrant folk painting types in India in different stages. They are
distinctively different. The styles are related to their folk mythology.
37 | P a g e
i. Main cluster: - The Gond tribe of Madhya Pradesh is

engaged in floor and wall painting. Wari is vivid expression
of daily and social events of Wari tribe in Maharashtra.
Rajasthan is famous for Pad painting done on cloth. Other
types of paintings are Pit hora painting in Gujarat and
Madhya Pradesh, Madhubani painting of Bihar, Chitrakar
painting of West Bengal, Patachitras in Orissa, and
Kalamkari in Srikalahasti (Andhra Pradesh).
ii. Raw material used: All the different types of folk painting
mainly use mineral colors and homemade canvases, if not
drawn on walls and floors. Painting on walls and floors is
done with help of white rice paste, ochre or yellow earth
colors. Different sands are used to prepare the base for the
paintings, geru, kali mitti, etc. Pithora art requires clay, and
designs made from grains, herbs, spices, etc. The paintings
may be made on canvas, paper and cloth surfaces.
iii. Fineshed product: -
TOP
13) CONCH SHELL
Conch shell craft has social and religious significance in India. Conch shell
bangles are widely used in West Bengal. Whole conch shell used in
marriages is often intricately carved. Shell craft also includes engraving,
painting and sculpting of seashells. The shells are used to produce a variety
of products, starting from attractively designed animals to human figures
depicting ethnic costumes of various sizes.
38 | P a g e
i) Main clusters: West Bengal is the main centre for products made
from conch and cowrie (small closed shells) shells. Shallow carving
and etching is done on conch shells, which can be used as decorated
pieces. Small shells are used to decorate bags, shawls etc. Along the
Eastern coastline, especially Tamil Nadu, many people are engaged in
this craft.
ii) Artisans involved: The carvers belong to Saankhari community in

West Bengal and mainly reside in Bishnupur, Saidpur, Hat gram and
Rampur.
iii) Raw material used: Dried and empty shells are the main raw material
which are sent to Kolkata from Tuticorin beach in Chennai.
iv) Final product
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14) COIR TWISTING
Coir is a natural, eco-friendly, water proof and exceptionally tensile

fiber extracted from the nuts of coconut palms. It is found in abundance
and is used for manufacturing a wide range of eco-friendly toys, mats,
brushes, mattresses, wall hangings, key rings, pen stands and other
home decorative. Coir comes in 2 varieties: Brown and white. Brown coir
39 | P a g e
(from ripe coconut) is less flexible but stronger and used in sacking,
upholstery padding. White coir (from unripe coconut) is finer and
weaker and used for making fishing nets, strings, ropes .
(a) Main clusters: Craft is primarily produced in Orissa (Sakhigopal,

Puri, Pipli, Bhubaneswar Batamangala and Kendrapara). It is
also produced in Kerala (Ernakulam).
(b) Raw material used: Raw material required for making coir toys
and other coir products are very few and basic. These include
are coir, woodfevicol, cardboard and cotton thread. Main tools
used are scissor, plier, and needle.
(c) Finished product: -
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15) THEATRE, COSTUMES & PUPPET
This craft involves making objects related to the festivals and for use in
performing arts. Puppet is one of such crafts, which has a rich tradition
in India. There are four types of puppets - glove, rod, shadow and string.
They are differentiated based on the different ways of manipulation of
puppets. These types have further varieties under them.
40 | P a g e
(i) Main clusters: Puppets from different parts of the country

have their own identity. These are produced in several
states including Odisha (Kundhei nach, Kathi Kandhe,
Ravanachhaya), Karnataka (Gombeyatta, Togalu Gombe-
atta), Andhra Pradesh (Tholu Bommalata), Tamil Nadu (Thol
Bommalattam, Tolpavaikoothu), Rajasthan (Kathputli), Bihar
(Yampuri) and Kerala (Tolpavakoothu, Pava-kathakali).
(ii) Raw material used: Tholu Bommalata, a famous form of

leather puppet produced in AndhraPradesh, is prepared
using goat hide and sheepskin. Vegetables dyes/chemicals,
ash are also used.
(iii) Final product:
TOP
16) DOLLS AND TOYS

Different regions of India are known for specific toys. The difference lies
not only in the availability of raw material, but also in the local culture,
idiom and culture. Various types of toys produced in India are clay toys,
41 | P a g e
wood based toys, cloth toys, and palm leaf based toys. Doll making is
usually a family enterprise.
(i) Main clusters: Toys and dolls craft is practiced in many parts
of India, including Lucknow in UP , Katwa, Gondalpara, and
Krishna Nagar in West Bengal, Khetri, Bassi and Jodhpur in
Rajasthan, Baliapatna, Siriapur, Barpali in Orissa, Nasik,
Nagpur and Mumbai in Maharashtra, etc.
(ii) Raw material used: Main materials used for toll and doll
making are clay, wood, and cloth, depending upon the type
of craft. Other materials used are colors and oil. For wooden
toys of Kondapally, tella poniki wood is used as raw
material.
(iii) Final product:-
42 | P a g e
TOP
17) GRASS, LEAF, REED & FIBER
Traditionally, natural fibers have been used in all cultures for making
utilitarian products. Different parts of the plant are used for preparing
various handicrafts such as footwear, basketry, mats, chik, bags,
lampshades, and boxes. Fibers can be extracted from the bark (banana,
jute, hemp, ramie), stem (banana, palm, bamboo), leaf (palm, screw
pine, sisal, agave), husk (coir), seeds (cotton), and grass (sikki,
madhurkati, benakati, munj).
(i) Main clusters: Fiber is found in many states including

Maharashtra (sisal), Kerala (palm leaf, korai grass), Tamil
Nadu (palm leaf, korai grass), Assam (shitalpatti),
Meghalaya (shitalpatti), Bihar (Sikki and Munj grass), etc.
Major centers of this craft are Almora and Dehradun in
Uttaranchal, Goa, Ernakulam in Kerala, Kullu in Himachal
Pradesh, Midnapur in West Bengal, etc.
(ii) Raw material used: Locally available natural fibers like Plant
fiber (hemp, sisal, jute, coir, reed, grass, etc), Animal fiber
(wool, mohair, cashmere, angora, yak wool, alpaca wool,
camel hair, etc) and Insect fiber (silk) are used as basic raw
materials
(iii) Fineshed product
43 | P a g e
TOP
18) METAL IMAGES (CLASSICAL)
Dhokra is a famous type of metal images (classical) craft, which uses the
lost wax casting method to draw images on metal. It is one of the
earliest known methods of metal casting. It is believed that Dhokra is
perhaps the only living tradition of metal image making in Eastern India.
The biggest advantage with tribal art is that it is performed with simple
easily available raw materials.
(i) Main clusters: Dhokra is practiced in Orissa, West
Bengal, Bihar, Chhattisgarh and parts of Andhra Pradesh.
In Chhattisgarh, the Dhokra clusters are spread in and
around Kondagaon and Jagdalpur.
(ii) Artisans involved: Over 600 artisans work in these

clusters88.
44 | P a g e
(iii) Raw material used: The craft uses an alloy of brass,

nickel and zinc that gives antique effects of the castings.
Apart from this farm clay and rice husk,Riverside clay or
mud and charcoal, bean leaves, bees wax, unrefined soil
(Bhami mitti), pieces of bronze and brass or bell metal
utensils, wood and coal are also required to fuel the
furnaces.
(iv) Fineshed product:-
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19) METAL IMAGES (FOLK)
In India, a variety of metal crafts are being practiced. One of such important
craft is metal images (folk).
It is an art which uses the metal sheet as a base and has intricate designs
embossed on the surface. These designs are usually then painted in bronze
or golden colour. The metal images (folk) is mainly used as a wall hanging/
painting for decorative purposes.
(i) Main clusters: Main clusters of this craft are Ujjain in

Bhopal, Varanasi in UP, Khurai in Manipur, and Bishnugarh
in Jharkhand.
(ii) Artisans involved: Number of artisans practicing this craft in

the above clusters is: Ujjain-225 plus artisans & 18 SHGs,
45 | P a g e
Varanasi-200 plus artisans & 15 SHGs, Khurai-203 plus

artisans & 14 SHGs, and Bishnugarh- 302 plus artisans & 21
SHGs.
(iii) Raw material used: The craft involves use of a metal

sheet (mostly aluminum, however can be copper or brass as
well) as a base, embossing tools, anti rust colours (black,
bronze and golden), ball point pen, kerosene,cotton,
painting brushes and a piece of cloth.
(iv) Fineshed product
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TAX BENEFIT FOR HANDICRAFT

BUSINESS
As, we all know that we have Parliamentary form of democracy both at Center
and State level. Therefore, tax benefit is provided both by Center Government
and State Government to the homemade craft business.
To understand it better let us divide it into two parts:
1) Pre GST Regime,
Under the old system before GST act, handicraft was not taxable in 15 out of
29 states. However, some tax used to be levied @ 5 % in remaining states.
Also, service tax were also charged when some services is received by
craftsmen for production of goods.
46 | P a g e
Also, most of homemade craft were kept under Schedule I which is exemption
list under the model VAT law.
2) Post GST Regime.
To understand tax benefit post GST we are dividing this into two parts:
GST BENEFITS TO HOME MADE

GOODS
EXPORT OF HOMEMADE GOODS HOME CONSUMPTION OF

HOMEMADE GOODS
 Export of Homemade Goods
Any export of homemade goods shall be ‘zero rated supply’ which means
that no tax need to be paid at the time of exports but credit of the input tax
related to that supply will be admissible. This regulation is been made since
homemade items should be freely exported in accordance of world trade
organization.
Refund shall be granted of tax on goods and exported out of India or on

inputs used in the handicraft goods which are exported out of India. So, the
exporter of homemade goods can get dual benefit i.e. no tax at the time of
export along with refund of tax paid on inputs. TOP
Under the IGST law, exporter of handicraft has two options to either pay
IGST at the time of export or export the goods without payment of taxes
(zero-rated supplies). In the first scenario, the refund of the taxes paid will
be available to the exporters and in the second scenario, the refund of the
tax paid on the inputs or used in the production of handicraft goods
exported out of India.
The Government of India has introduced Exports from India Scheme

through the Foreign Trade Policy 2015- 2020. Over 35 handicraft products
such as candles, paper and clay articles would be entitled for export
benefits under the scheme. Under this scheme, the government provides
duty credit scrip to exporters. The rate varies from product to product and
the export destination, as envisaged in the foreign trade policy. Some
47 | P a g e
Merchandise Exports from India Scheme entries under handicraft sector are
included for enhanced benefits under MEIS for the export.
 Home Consumption of Homemade Goods
Under the new system, the legislature sorted most of the handicrafts
items under the slab of 2.5 % to 6 % of GST rate. Also, the benefit is
also enjoyed by craftsmen due to reduction in double jeopardy i.e.
double taxation of goods both at center and state level in GST
system. For example – Handcrafted candles are taxed @ 6 % under
code 3406, Bangles, beads and small ware is taxed @ 2.5% etc.
Under the GST few homemade craft items were made fully exempt.
The GST council can taxed such few item when they deem fit.
Therefore, handicraft industry is not required to pay any tax on such
few items and also not required to comply with the rules and
regulation of any other Act and statue.The craftsmen can also reduce
its tax liability by claiming input tax credit they buy for producing the
homemade goods. Higher the tax paid in input goods more they can
claim input tax credit. Input tax credit is the GST paid on input good
for production of Homemade craft.Few categories of inter- state
suppliers of handicraft goods are exempted for compulsory
registration of industry.
TOP
1st Category: Exemption available to such persons making
inter-State taxable supplies of handicraft goods.
2nd Category: Exemption available to such persons making inter-

State taxable supplies of the products when made by the
craftsmen predominantly by hand even though some machinery
may also be used in the process.
Section 54(3) of the CGST Act, 2017 provides for refund of any
unutilised input tax credit of inputs at the end of any tax period
except wherethe goods exported out of India are subjected to
export duty; or the exporter claims drawback of CGST or refund of
IGST paid on such export.Some procedural benefit is also provided
48 | P a g e
to handicraft industries under GST act as well as under some state

law also.
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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 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
49 | P a g e
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.
TOP
50 | P a g e

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INDIAN HANDICRAFT INDUSTRY

INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

 NAME: - ANIKETH PRABHU

 ADDRESS: - 202, SARVODAYA POOJA, OPP: SHIVA TEMPLE,

 CONTACT NO: - 9869340983

 REGISTRATION NO: - WRO0681610

 NAME OF ITT CENTER

 BRANCH CODE: - WI032

 BATCH NO: - 06/22/90

 PROJECT NAME: - INDIAN HANDICRAFT INDUSTRY

 DATE OF SUBMISSION: - 11TH JULY,2022

INDIAN HANDICRAFT INDUSTRY

INDIAN HANDICRAFT OVERVIEW

THE IMPORTANCE OF HANDICRAFT

2. THE ECONOMIC IMPORTANCE

2. Wooden art ware and sculpture:

4. Marble and soft stones crafts:

6. Hand printed textiles and scarves:

7. Zari and sari products are manufactured at units located at Surat,

CRAFTS CONCENTRATION AREAS

PROBLEMS OF INDIAN HANDICRAFTS

1. The mass-produced goods are steadily replacing utility items of

FINANCIAL ASSISTANCE TO HANDICRAFT

2. Under National Handloom Development Programme and

3. 5 mega-clusters have been sanctioned under Comprehensive

4. 5 mega-clusters have been sanctioned under Comprehensive

5. Government has also decided to setup one Silk Mega Cluster at

1. Direct Benefit to Artisans Scheme: - This scheme provides financial

3. Comprehensive Handicrafts Cluster Development Scheme(CHCDS): -

4. Amended Technology Up-gradation Fund Scheme (ATUFS): The

5. Weavers’ MUDRA Scheme: Under the Weavers’ Mudra Scheme, credit at

Margin money assistance to a maximum of Rest. 10,000 per weaver and

6. Comprehensive Handloom Cluster Development Scheme: The

7. Yarn Supply Scheme: Yarn Supply Scheme is being implemented

8. National Handloom Development Programme(NHDP): These

PRODUCT-WISE PERCENTAGE INCREASE IN EX -

India's handmade exports (US$ billion)

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

country wise share of India's handicraft

USA UK AUSTRALIA FRANCE

TOP 10 HANDICRAFT COMPANIES IN

Asha Handicraft Association is an organization that provides marketing

Headquarters: Guru gram,

Craft Maestros is primarily involved in selling handlooms and handicrafts

3. DEVELOPMENT COMMISSIONER (HANDICRAFTS)

4. GATHA HANDICRAFTS PRIVATE LIMITED

Headquarters: Ahmedabad, Gujarat

8. THE INDIA CRAFT HOUSE

10. U.P. HANDICRAFTS DEVELOPMENT AND MARKETING

Headquarters: Lucknow, Uttar Pradesh

COVID-19 IMPACT ON HANDICRAFTS

Since the lockdown, production has stopped completely. Huge unsold

Since the lockdown and social distancing resulted in minimised production,

HANDICRADT PRODUCTS AND THEIR

ii) Raw materials used:- Hides of cattle,

iii) Finished product

iv) Finished product:-

3) RUGS & DURRIES

iii) Fineshed product:-

i) Main clusters: There are 470 handloom clusters, of which 230

ii) Artisans involved: Handloom industry is second largest employment

iii) Finished product.

5) TEXTILE HAND EMBROIDERY