Professional Documents
Culture Documents
ANNEXTURE-I
HANDICRAFT INDUSTRY
SUBMITTED BY
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Annexure - II
Department of Commerce
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The above dissertation was scanned using iThenticate for similarity detection and the similarity
index is as follows:
Signature: …………………………………………………
Date: ……22/04/2021……………….
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Annexure- III
Student's Declaration
I hereby declare that the Project Work with the title (in block letters) HANDICRAFT INDUSTRY
submitted by me for the partial fulfilment of the degree of B.Com. (Honours) at St. Xavier’s College
(Autonomous), Kolkata is my original work and has not been submitted earlier to any other Institution
for the fulfilment of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report
from any earlier work done by others or by me. However, extracts of any literature which has been
used for this report has been duly acknowledged providing details of such literature in the references.
Signature:
Name: PRIYANSHI AGARWAL
Address: 36, Abhoy Guha Road, Liluah, Howrah- 711204
Place: KOLKATA
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ACKNOWLEDGEMENT
I'd like to take this opportunity to express my heartfelt gratitude and warm regards to my mentor, Prof.
Saptarshi Ray, for his outstanding leadership, supervision, and relentless encouragement during this
project. His blessings, assistance, and support from time to time will take me a long way in the life
journey I am about to embark on. I would not have been able to finish the project without his relentless
I am grateful to all of my colleagues for the useful knowledge they have delivered in their respective
Finally, I want to express my gratitude to God, my parents, brother, sisters, and friends for their
unwavering support, without which this project would not have been possible.
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TABLE OF CONTENTS
SL NO PARTICULARS PAGE NO.
1) CHAPTER 1: INTRODUCTION 6
1.1) BACKGROUND 7
4.1) CONCLUSION 35
4.2) RECOMMENDATION 36
5) REFERENCE 37
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CHAPTER 1:
INTRODUCTION
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1.1 BACKGROUND
The roots of Indian art and crafts are digged very deep and they are capable of influencing the
upcoming generations. The present status of craft in India owes much to the rich traditions of
the past. Most of the crafts from the past still flourish thanks to their utilitarian nature, their
availability to the folk, and recognition in domestic and foreign markets.
There is an excellent demand for rich brocades and zari work. The repertoire of saris ranges
from BanarsiAmru, Tanchoi from Surat, Paithani, Patola, and Kancheevaram to the cotton saris
from the tribal regions of Bihar and Madhya Pradesh etc, to enchant the modern Indian woman.
There is a mixture of materials available to the consumers these days. One can get a spread of
clothes made from different silks and mixed fabrics.
Richly embroidered garments, woven shawls and home items are hip lately. Mainly craftsmen
from Kashmir, Punjab, Gujarat, Rajasthan, Madhya Pradesh, North Eastern states etc. create
these products. There is a flourishing marketplace for pherans and tablecloths from Kashmir.
Woollen shawls from Himachal and North Eastern states too are popular. Amongst all these
the most popular is the hasta shilpa products West Bengal specially Dokra and terracotta
products
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Recently I visited some of the fairs of these products and was very much moved by the artistry of
the craftsmen, which brought an eagerness in me to know about the demand of these products in
various markets across the globe and what is its future growth scope of these products.
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Bhattacharjee (2007), has found the word ―handicraft‖ is self-explanatory as meaning handmade
crafts. But obviously it confuses policy makers and economists as they find it to recognize
handicrafts as an autonomous economic sector in its own right.
Craft Council of Bengal, (2009), had also conduced workshops for integrated design and technical
development on bamboo and wrought iron furniture. Another works of improved terracotta
pottery was held in Howrah Industrial Zone. Kantha Embroidery, Silver Filigree work, dokra,
leather craft, banana fibre etc. was represented at make in India show at Cairo.
Chattopadhyaya, (1996), In her book ―The glory of Indian Handicrafts‖ has vividly described,
about handicraft of different states of India. National Institute for Social Development and
Applied Research, Bhubaneswar has done a research work on technology, firm size and
performance of three popular crafts of Orissa.
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• Due to time constraint the entire market areas could not be covered.
• The project is mainly based on secondary data except for the handicraft market study in
India.
• The project is made taking into consideration selective organisations who are entirely
involved in this business of exports. Due to limitations as to time all the organisations of
having these kind of operations have not been taken into consideration.
• The entire international data is secondary data, since collection of primary data from
international markets was not possible.
In Chapter -2: Conceptual Framework, I have discussed about the handicraft sector of our
country and the national and international scenario.
Chapter -3:Findings and Analysis, deals with the functioning of the Handicraft market, its
pricing and cost structure , top 5 handicraft exporting companies of our country, struggle of E-
commerce to portray artisans globally , impact of Goods and Service tax , demonetization on
handicraft Industry and the programmes and schemes adopted by government to overcome the
problems of handicraft industry , the awards and achievements of the handicraft sector and a small
survey to know about the perception and inclination of consumers towards handicraft items.
Chapter-4 deals with the conclusion and the recommendations for the improvement of the
handicraft sector.
The project ends with a bibliography which contains the references and annexure-II and
annexure-III which consists of a sample questionnaire.
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CHAPTER: 2
CONCEPTUAL
FRAMEWORK
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There was only slow growth in this region during the early years of independence. India, on the
other hand, began to emerge as a major player in the global economy after introducing economic
reforms in the 1990s. Not only is handicraft important for the economy and for providing
employment for locals, but it is also an ectreme source of foreign exchange earnings for the
government and the BOP. Since 1999, India's handicraft exports have increased dramatically,
propelling the country to new heights, and this sector is actively working to reduce the deficit. For
the years 1998-1999, total exports led 35659.14 million dollars, with handicrafts accounting for
1481.93 million dollars. Using this as a base year, we attempt to analyse the contribution of
handicraft in foreign inflow to the country for the next fifteen years, with growth and decline states.
From April 2016 to March 2017, India's handicraft exports increased by 11.07 percent year on year
to US$ 3.66 billion. Shawls as art wares (26.79%), hand printed textiles and scarves (25.96%), art
metal wares (19.04%), agarbatis and attars (6.76%), and embroidered and crocheted goods (6.76%)
all saw positive growth during this era (5.85 per cent).
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The United States, the United Kingdom, the United Arab Emirates, Germany, France, Latin
American countries (LAC), Italy, the Netherlands, Canada, and Australia are the top ten
destinations for Indian handicrafts.
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CHAPTER: 3
PRESENTATION OF DATA
ANALYSIS AND FINDINGS
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• Domestic Market
The emerging point of any handicraft product is from the artisan‘s workplace. The market
mainly exists because of the artisans and the consumers who have interest in this kind of
traditional but stylish art. A brief description of the channels of distribution of handicraft
market in the most common way we see the market has been summarised below:
DOMESTIC MARKET
Artisans
Wholesalers
Retailers Consumers
Source: https://www.slideshare.net/akshatsrivastava4/dissertation-18628226
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International market
Like any other market, the handicrafts market also has a cost structure and pricing strategies. Right
price is very essential to ensure that the right audience is attracted and at the same the cost of
production is also covered. Price in this market also depends upon the same mechanism of demand
and supply like any other market. The greatest benefit that the sellers of handicrafts enjoys is that
currently under the newly launched tax system of India i.e., the Goods and Service tax regime it
comes under 0% tax bracket thus the cost of production is very low. The cost involved in production
of a handicraft item are as follows:
❖ Cost of Materials: Raw materials are the main components for production of any
handicraft product. Materials like- various metals if the product are of brass, dokra,
terracotta etc. various materials like coconut shells, bamboo, silk etc. depending upon the
item to be produced. Threads, needles, beads, sequins, and other materials are also needed.
To calculate the material cost for a unit, divide the total sum of materials used for an order
by the number of embroidered pieces.
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❖ Labour: The main cost involved in the handicraft industry is that of labour. Although in
India labour is very cheap but the handicraft Industry is solely dependent of labour intensive
techniques, so the main cost that is involved is payment of wages and salaries. In India
mainly in areas of west Bengal, Rajasthan the labourers are paid on a piece-rate basis that
is calculated on the basis of number of hours required to finish the job times per hour rate.
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❖ Labelling and Packaging: Labelling cost includes price tags company label country of
origin label etc. Packaging cost includes: Cartons or boxes, plastic bags, bubble paper etc.
❖ Other costs are transportation cost including costs like freight, wharf age etc. The
transportation cost includes the following process:
Artisans Customers
• Getting the raw • Collection of
materials to the • Distribution of Finished Goods • Sending
: raw materials from artisans. Finished
to the artisans. Products to the
Manufacturing Finished buyer.
units Products
❖ Of course in case on exports the cost of transportation increases because of various other
costs that are to be paid at the customs station and ports along with duties.
Artisans Freight on
•Getting the raw •Collection of board(FOB), •Sending Finished
materials to the: •Distribution of Finished Goods •Various costs of Products to the
raw materials to from artisans. exporting a buyer.
the artisans. product will be
incurred like CIF
Manufacturing Finished Customers
units Products
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Indian handicrafts reflect the country's ancient art, history, and traditions. The jewels of India's
handicrafts and textiles, which once held a prominent place in the lives of royalty, are now lost to
history. With the aid of the government and the private sector, artisans are fighting to keep India's
traditional art alive in the face of the trends-driven dynamics of the contemporary marketplace.
Some of these issues are stated below:
• Low Productivity:
Because of the informal existence of the handicraft sector and the artisans' lack of education,
several issues arise, such as inventory management, access to government schemes and market
information, and negotiating with traders and middlemen.
• High Maintenance:
Maintaining handicrafts necessitates a great deal of attention. Since they are delicate by nature, it
is critical to properly preserve, clean, and store the handcrafted item. As a result of the higher
maintenance costs, the final product's price rises.
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• Inadequate Inputs:
The majority of handicraft producers struggle with a shortage of working capital as well as access
to credit and loans. They normally end up paying more interest and making little profit due to a
lack of education. Handicrafts face problems such as lack of work sheds, storing place, shipping
and packing facilities.
• Outdated Methods:
The artisans are unable to update production technology due to a lack of funding. Due to a lack of
awareness and interest among the younger generation, they do not embrace modern methods and
continue to produce handicrafts using old school methods. As a result, development is delayed, and
there are few new designs on the market. Craftsmen and artisans are often unaware of market
demand, resulting in a demand-supply mismatch.
• Lack of Consumer Awareness:
Another aspect that affects the handicraft industry is the economy. Consumers are unaware that the
majority of these craft decor items are handcrafted and made from natural materials. It becomes
clear that handcrafted items are less costly than machine-made items. When buying handicrafts,
most buyers try to haggle, but they don't realise that these items take a long time, a lot of labour,
and a lot of talent to create.
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To combat the COVID-19 crisis, the Ministry of Textiles approved a fund of Rs. 2.8 crore in
September 2020 for an integrated project for the production and promotion of Varanasi handicrafts.
Amazon.in has announced the Handicrafts Mela, which will take place from September 26, 2020 to
October 10, 2020, and will benefit over 8 lakh artisans and weavers across the country.
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National Award for 2012 Cane and bamboo artistry, clay modelling
(terracotta), Coconut shell carving, Kantha stitch
and NakshiKantha stitch
National Award for 2014 Brass & Bell Metal suri bowl, Paddy Jewellery&
straw craft, Kantha Hand Embroidery, Coconut
Shell
Carving
National Award for 2015 Copper Engraving
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Particulars
Age group of surveyed customers
15-25 82.5%
26-40 1.8%
41-60 5.3%
>60 10.5 %
Interpretation: The youth of our country are more enthusiastic about handicraft items and they
are the ones who will keep the tradition of our country alive therefore they were a major part of
my survey. However the people of other age groups also formed a part of my survey as their
views were equally important for my project.
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Interpretation: The majority people in our country are using handicraft products because of their
easy availability, credibility, long lasting nature and most important it promotes Swadeshi concept.
Question 3) What are the different type of handicraft products used by people?
Interpretation: As per the survey conducted it was found that majority of the people use
handicrafts in their day to day lives. They find handicrafts to be more authentic and unique than
machine made products. Some of them purchase handicrafts just as decorative items, some for
household utilities, and clothes and the others use it as jewellery, Idols of deities.
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using
using online
Particulars shopping using gifts using trade Self-made
shopping portals
malls fairs
Customers
preferences 19 23 21 28 1
% of Customer
Preferences 33.3% 40.40% 36.8% 49.1% 1.8%
Interpretation: The handicraft products that people use are purchased either from fairs or from local
markets, shopping malls and now the most common and easiest method is online shopping.
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Question 5) Do you feel that handicrafts have kept the tradition of a place alive in it?
% of Customers who
responded to our 66.7% 14% 19.3%
Questionnaire
Interpretation: The most interesting part of the survey was to find out that still majority of the
people are so much interested in handicrafts and other artistic materials. Majority is well aware of
the art and culture of India and they find the art and culture to be unique and traditional. The
responsiveness of the people is indicative of traces of tradition still alive in the hearts of people.
Interpretation: It was glad to find that most of the surveyed people were aware about the various
forms of handicrafts of our Indian tradition.
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Interpretation: It was glad to find that most of the surveyed people like visiting handicraft fairs
and they have managed to devote some of their precious time to our Indian tradition and they
were able to preserve our Indian heritage in the heart of youth.
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Question 8) Do you find Handicraft Products better than Machine Made Products?
Interpretation: It was glad to find that most of the surveyed people found handicraft products
better than Machine made products.
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CHAPTER 4:
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4.1 CONCLUSION
Art and craft, which symbolises culture, tradition, and social values, are the epitome of India. The
Indian handicraft industry is one of the country's oldest and largest industries. After the agricultural
sector, India's handicraft sector is the most important. It is, after the agricultural sector, the sector
that produces the most jobs. Despite the fact that the government is taking steps to improve the
handicrafts market, it is still not growing due to the aforementioned loopholes. Despite the fact that
this sector has a high demand in the international market, the people who work in it are poor and
from the lower social classes. Handicrafts are thought to have great potential to be a big part of this
inclusive growth, with the aim of seeing India becoming the world's yardstick for inclusive growth,
not just for the advancement of a single industry.
Every optimist in the country believes that Indian artisans are unique and have the ability to
compete with the best of the world's handicrafts on the international market. As a result, the
government should take steps to develop our handicraft industry and artisans' lifestyles, thereby
boosting the overall growth of our country.
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4.2 RECOMMENDATION
Hence for the development of the Handicrafts sector the following points are recommended:
• It is recommended that the promotional activities like trade shows, exhibitions and Handicraft
Products Expo should be arranged at district as well as at state capital level to attract foreign
and domestic customers towards Indian handicraft products
• It is recommended that the state Government should arrange events in which they educate the
Indian handicraft manufacturers to avail the subsidies and facilities provided by Central as
well as state Government and should provide capital to modernize the craft.
• It is recommended that Government should interfere in increasing the wage structure of the
artisans so that they can survive during recession.
• It is recommended that the rural workers should be trained to make use of latest tools and
equipment in order to increase the productivity.
• It is recommended that the various handicrafts related organization, like Development
Commissioner, Ministry of Textiles (Handicrafts), Craft Council of India, Export
Promotion Council of Handicraft (EPCH), Carpet Export Promotion Council (CEPC),
Handloom Export Promotion Council, should help the local units to produce various value
added items for domestic market and also help to penetrate the international market.
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REFERENCE
• https://www.omicsonline.org/open-access/the-sector-of-handicrafts-and-its-share-in-indian-
economy2223-5833-1000S3-009.php?aid=83355
• https://www.slideshare.net/akshatsrivastava4/dissertation-18628226
• https://www.omicsonline.org/open-access/the-sector-of-handicrafts-and-its-share-in-indian-
economy2223-5833-1000S3-009.php?aid=83355
• http://pib.nic.in/newsite/PrintRelease
• Financial Express
http://www.financialexpress.com/market/commodities/handicrafts-exports-rise-8-3-to-2-67-bn-
overalltextile-garment-sector-trend/514842/
• Economic Times
https://googleweblight.com/i?u=https://m.economictimes.com/news/economy/policy/bud get-2016-
handicraft-exporters-demand-incentives/articleshow/51093346.cms&hl=en-IN
• Annual report of The Handicraft and Handlooms Exports Corporation of India Limited.
• https://www.ibef.org/exports/handicrafts-industry-india.aspx
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