MINI PROJECT

ON

HANDICRAFT

SUPERVISOR NAME
Mr. Babar Mushtaq

NAME
Khadija Asif
MBA 1ST YEAR
AL BARKAAT INSTITUTE OF MANAGEMENT STUDIES,

1
 A MINI PROJECT REPORT
ON
HANDICRAFT PRODUCTS

In Partial fulfillment of requirement for the award degree of

MASTER OF BUSINESS ADMINISTRATION (M.B.A)
Of
DR. A.P.J. ABDUL KALAM UNIVERSITY, LUCKNOW

Submitted by:
Khadija Asif
Ist Semester (2024-26)

AL-BARKAAT INSTITUTE OF MANAGEMENT STUDIES

(ABIMS) ALIGARH.

2
 DECLRATION
I hereby declare that the following documented Mini project on

HANDICRAFT PRODUCTS submitted to AL-BARKAAT Institute of

Management Studies , Aligarh, India for the degree of MASTER

OF BUSINESS ADMINISTRATION (M.B.A) is record of original

work done by me to the best of my knowledge has not previously

formed the basis for the award of any degree.

DATE : 22NDJanuary 2025

Place: Aligarh

Signature of the student

Khadija Asif

3
 ACKNOWLEDGEMENT
My deepest thanks Mr. Babar Mushtaq, the guide of the

project for guiding and correcting various documents of

mine with attention and care. He put efforts and made

necessary correction as and when needed

I also express my thanks to the Director of AL-BARKAAT

institute of management studies (Prof.) Dr. Javaid Akhtar

who gave me the golden opportunity to do this wonderful

project, which helped me in doing a lot of research and I

came to know about a lot of things.

4
 TABLE OF CONTENT
S.NO. PARTICULARS PAGES

1 ABSTRACT 6

2 INTRODUCTION 7-10

3 MARKET SHARE & Positioning 11-17

4 BUSINESS PROCESS 18-24

5 STRATEGIES 25-27

6 S.W.O.T ANALYSIS 28-34

7 OVERVIEW 35-39

8 CONCLUSION 40

9 BIBLOGRAPRHY 41

5
 ABSTRACT
The aim of this project is to outline the scope in business of

HANDICRAFT PRODUCTS which are made up of different

materials like wood, bone, fabric, metal etc. lies under

Handicraft Industry. First we will discuss what is handicraft?

What is mostly demanded products. Who are the competitors?,

and what is the business process?, and scope in international

business? All other strengths and weaknesses of this business

and the best way to overcome the flaws.

6
 INTRODUCTION
A handicraft, sometimes more precisely expressed as artisanal
handicraft or handmade, is any of a wide variety of types of work
where useful and decorative objects are made completely by
one’s hand or by using only simple, non-automated related tools
like scissors, carving implements, or hooks. It is a traditional main
sector of craft making and applies to a wide range of creative and
design activities that are related to making things with one's
hands and skill, including work with textiles, moldable and rigid
materials, paper, plant fibers, clay etc. One of the oldest
handicraft is 1this is a sort of metal casting that has been used in
India for over 4,000 years and is still used. In Iranian Baluchistan,
women still make red ware hand-made pottery with dotted
ornaments, much similar to the 5000-year-old pottery tradition
of Kalpurgan, an archaeological site near the village. Usually, the
term is applied to traditional techniques of creating items
(whether for personal use or as products) that are both practical
and aesthetic. Handicraft industries are those that produce
things with hands to meet the needs of the people in their
locality without using machines.

Collective terms for handicrafts include artisanry, crafting, and

7
handcrafting. The term arts and crafts is also applied, especially
in the United States and mostly to hobbyists' and children's
output rather than items crafted for daily use, but this
distinction is not formal, and the term is easily confused

8
with the Arts and Crafts design movement, which is in fact as
practical as it is aesthetic.

Handicraft has its roots in the rural crafts—the material-goods

necessities—of ancient civilizations, and many specific crafts
have been practiced for centuries, while others are modern
inventions or popularizations of crafts which were originally
practiced in a limited geographic area.

Many handcrafters use natural, even entirely indigenous,

materials while others may prefer modern, non-traditional
materials, and even upcycle industrial materials. The individual
artisanship of a handcrafted item is the paramount criterion;
those made by mass production or machines are not handicraft
goods.

Seen as developing the skills and creative interests of students,

generally and sometimes towards a particular craft or trade,
handicrafts are often integrated into educational systems, both
informally and formally. Most crafts require the development of
skill and the application of patience but can be learned by
virtually anyone.

Like folk art, handicraft output often has cultural and/or religious

9
significance, and increasingly may have a political message as
well, as in craftivism. Many crafts become very popular for brief
periods of time (a few months, or a few years), spreading rapidly
among the crafting population as everyone emulates the first
examples.

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Key Facts (Market Share)
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 20% every year.

Handicrafts industry is one of the important segment 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 Crore.

This Industry provides huge employment opportunities to

artisans that include women and people belonging to backward

11
and weaker society. This is one of the major source of income
there.

The Indian Handicraft Industry is a $100 billion industry

worldwide.

India’s contribution in world market is 1.2%

The total exports of crafts items: - Rs. 13412.92 Crore.

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13
14
 Market position
India is a diverse land consisting of myriad traditions and
cultures, all of which provide the ideal breeding ground for a
range of handicraft traditions to have emerged over the
centuries.
In fact, India had once been the top destination of precious metal
from across the globe because of the huge demands for the
crafts produced by its highly skilled artisans.

However, all that went for a toss following the establishment of

the British colonial rule over the subcontinent, and the beginning
of the Industrial Revolution that spelt ruin for the traditional
craftsmen.

Ever since then, the Indians who were once proud of their local
traditions began aping the west and gradually gave up on the use
of various handicraft items in their everyday lives. This has
largely been the template for the past century and a half when
most of the handicraft traditions of the country have been on a
continuous decline.
Indians had once attained excellence in diverse fields of
handicrafts ranging from those involved in metal ware and wood
to fine textiles.

However, loss of patronage has made most of these handicrafts

traditions are dying breed in India if they are fortunate enough
not to be extinct already.

Moreover, the rapidly changing lifestyle of most Indians, coupled

with the challenges posed the mass produced items

15
post the Industrial Revolution led to these items becoming a
novelty item restricted to the houses of the well-to-do families
only.

However, this pattern has been experiencing positive, albeit

gradual, changes in their demands thanks to the rising demand
for these products, which is coming mostly from the
international market.

If you happen to have a keen interest in improving the overall

look and appeal of your home decor by bringing in quality
handicraft items, then you are not the only one. In fact, it has
become quite a fad among many to showcase their keen interest
in Indian artistic traditions, as well as, portraying their classy
sense of aesthetics by bringing home these handicraft items, and
even gifting these to others.
However, the fact remains that despite the rising interest in the
Indian handicraft gifts demands, the bulk of the demand still
originates from the country like USA, UK, Australia, India,
Germany etc. This is because of the fall in attraction towards the
mass produced items and a growing sense of realisation
regarding the uniqueness of products crafted by hand.

It may seem quite ironical to you and most others with a basic
sense of history that the international market is ahead of the
domestic market in appreciating the true value of my
handicrafts. USA, Western Europe, and West Asia are leading the
way in urging the demands of Indian handicraft items and leasing
a breath of new life into this, particularly decentralised industry.

16
Carpet weaving and shawl weaving have been among the most
popular of the Indian handicrafts traditions that have earned a
considerable amount of foreign exchange for the country. Apart
from these two, intricate handicraft items made from wood, metal,
as well as, cutting and polishing of diamond, and other precious
stones form the bulk of the handicraft exports from our country.A
major reason behind the lack of adequate demand for many of the
treasures produced by our craftsmen is the mentality too long for
foreign goods while not attaching the right worth with those
produced or available in India. The global handicraft market was
valued US$ 680 billion in 2021 The global handicraft markets grow
at CAGR of 10.41 during 2022-2027

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 BUSINESS PROCESS

I have planned to start a business of handicraft product with a

firm name ARTNEST.CO. which will produce prodcuts made up
of hands and machienary according to the demand of
international market . The handicraft business has been
increasingly in demand because of many people who love to
personalize their stuffs and tourists who love cultural items for
souvenirs.
Artnest.co have three options in starting a handicraft business.
Artnest.co can produce their own handicraft items or artnest.co
will just sell other’s products or artnest.co can do both –
producing and selling. Nevertheless, before artnest.co engage in
this kind of business, artnest.co should know whether or not
people will be attracted and buy my products, understand the
business itself as well as the basic bookkeeping, managing,
advertising, and purchasing. Keep in mind that whatever
business artnest.co will start, artnest.co should be able to have
enough knowledge about the business so that my business can
grow successfully and if artnest.co encounter problems,
artnest.co will definitely find solutions to them.

Location of the Business

The facility where artnest.co will establish handicraft business
must be suitable to the terms of services, size, safety, and
security artnest.co require. Artnest.co can consider renting or
buying a home studio and then register my business. Obtain the
necessary papers and documents needed to operate my

18
business. If artnest.co will be leasing a place, consult with a
lawyer before artnest.co sign any agreement. Establish
artnest.cor studio in an area with minimal traffic and has a
convenient parking space Make sure that my business will not
disturb and affect the neighborhood so that artnest.co will
prevent any problems later on.

Selling Finished Products of Artnest.co

Of course, artnest.co can absolutely sell finished products from
the studio. However, specialty crafts must be sold in department
stores or retail stores especially if they are of limited quantities.
Just be careful if artnest.co will be on consignment terms.
Another place where artnest.co can sell products is trough
galleries and agents. The prices of my handicrafts should be
based on cost approach and comparative approach. Then,
artnest.co just choose the price within the range of prices from
these two approaches.

SCOPE IN EXPORT OF HANDICRAFTS

The handicraft sector is one of the fastest-growing sectors in
India. Over time, this sector has made some significant
contributions to the nation’s economy. Also, it has played a vital
role in creating massive employment in India. The Indian
handicraft sector is bifurcated with more than 7 million regional
artisans & over 65,000 exporters promoting craftsmanship in
local as well as international markets. This blog addresses those
individuals who are intending to export handicraft from India
and are eager to use it as a legit business option. Apart from

19
legalities, this blog will also unveil some information on the
scope and benefits associated with this business model.
An Overview on Export Destinations and Key Markets
Exportation of the various segment during last year
stood as follow:
 Woodwares = US$ 611.48 million
 Art metal wares = US$ 353.92 million
 Embroidered & crocheted goods = US$ 463.13 million
 Imitation jewellery = US$ 144.19 million
 Handprinted textiles & scarves = US$ 239.73 million
 Miscellaneous handicrafts = US$ 714.67 million
India handicrafts are shipped globally, with the top 5
destinations being the United States, United Kingdom[1],
United Arab Emirates, France, and Germany.

Compulsory Licenses/Registration to export handicraft

outside India
Following are the fundamental documents that one must
arrange for venturing into the business of handicrafts export.

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21
Company registration
Company registration creates a legal foundation for any entities
that intend to engage with EXIM or any other business domains.
Remember that company registration is a mandate and one
should not overlook it at any cost. My legal framework offers the
following business structures to the business owners in India

 Private Limited company

 Public Limited Company
 One Person Company
 Partnership firm
 Limited Liability Partnership
 Section 8 (mainly for NGOs and trust)
 Nidhi Company
In case artnest.co opt for a business structure other than LLP and
partnership, then artnest.co need to apply for the SPICe+ form
available on the MCA’s website. The top three companies
mentioned in the aforesaid list revolve around plenty of legal
formalities and seeks tedious post-registration compliances.
Thus; if my scope of operation and number of members are on
the lower side, then artnest.co can also opt for options like LLP
and partnership firm and still functions as a legalized firm.

Permanent Account Number

Income generated via exporting activities attracts several
deductions and exemptions under various sections of the
Income Tax Act. To avail of these exemptions and deductions,

22
exporters are mandated to register their export house with the
IT department and obtain PAN. Remember PAN act as a
mandatory document for availing IEC, Import Export Code.

Import Export Certificate

The import-export code (IEC) is a basic legal document for any
importers and exporters in India. Thus; ruling out this certificate
is not prudent from the legal standpoint. One can hop onto the
DGFT website to get this certificate against a properly filled e-
form and registration fees. Do not forget to open the current
bank account in the name of artnest.cor company before opting
for this certificate.

GST registration
The exportable goods do not attract Value Added Tax and
Central Sales Tax provided the export house has VAT registration
in place and obtains exemption as per norms cited under the
concerned Acts. GST registration is mandatory for every
exporter with effect from the date fixed by GOI by 2017.

Registration with Export Promotion Council (EPC)

It is important that every exporter enrolls with EPC and avail of
the Registration-cum-Membership Certificate’ (RCMC).
Presently, 21 EPCs are dealing with an array of commodities. The
benefits extended to exporters are only accessible to the
registered exporters having valid RCMC.

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Registration with Export Credit and Guarantee Corporation of
India (ECGC)
Exporters often encountered political and commercial risks in
the global market. Thus, to avert such risks, it is pertinent for
exporters to get enroll with the ECGC. This government-backed
institution also aids exporters in accessing fiscal support from
commercial banks and other related avenues.
Mandatory Documents for Exporting Handicraft Goods beyond
Indian Territory

 Pro Forma Invoice – Needed During Quality Check

 Customs Packing List- Needed During Quality Check
 Country of Origin or COO Certificate –
 Shipping Bill
 Commercial Invoice
 Bill of Sight
 Bill of Lading or Airway Bill
 Bill of Exchange
 Letter of Credit
 Import Export License ( for Shipping Purpose)
 Warehouse Receipt ( If Inland Cargo Deport (ICD) is
involved)
It is evident from above that one has to encounter myriad of
legal implications and documentations to export handicraft from
India. The Customs department, in particular, pays extra
attention to shipping documents owing to the tightened law and
prevailing Acts. Since these documents are highly susceptible to
errors, it is pertinent to prepare the same under

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NEW STRATEGIES TO BOOST MARKETING OF
HANDICRAFT PRODUCTS
India is known for her handicraft products since time
immemorial and has been an important source of the foreign
exchange, employment generation and economic growth.
Handicraft industry spreads throughout the India. It is the second
largest employment generating industry after agriculture
sectors. It has important in the economy of India. This industry
scattered nearly all states of the country, which have their own
culture & tradition. Handicraft products are one of the important
medium to throw which the traditional culture is alive. It has
important role in preserving the design, arts, variety, style and
uniqueness of the handicraft product. Nevertheless, handicraft
products are not popular as compared to the other machine
made products. Marketing is the societal process by which
individual and groups obtain what they need and want through
creating, offering, freely exchanging products and services of
value with other. (Philip Kotler).To making right decision is very
tough job for marketing field without market research, which
decided which types of new products must be develop, at what
price, where to sell the products how much money spend on
advertisement, and through internet. Internet marketing is one
of the important medium through firm can provide all
information regarding firms and their products. The role of
internet marketing is very important for every industry.

25
The large industry have their own formal marketing network,
sales force & media campaigns but those industry which are
unorganized, they lack this kind of medium to market their
products among the customers. This industry depends only on
personnel effort and informal medium of marketing. Internet
marketing play a key role which can make and break the industry
because it give all types of information regarding price, qualities,
availabilities, uses etc. and motivate the customer to buy the
products. Many well established company promotes the
products through strong marketing campaigns.

ROLE OF INTERNET MARKETING IN HANDICRAFT

1) E-commerce The Invention of Internet has a great evolution

for human life, which makes the life easy. Internet marketing
influence the way of business communication, it is one of the
easiest way to give information regarding different products and
services of handicraft and cover ample amount of population on
single click.

2) Cuts Cost & Saves Time This is an efficient way to reduce the
cost & save the time like cost of searching and monitoring the
products, cost of more retail outlay, cost of sourcing of materials,
supply chain management, to get update information regarding
handicraft products and other transactional cost of the products.

3) Make Organization Global Through internet marketing, it

expand the market of handicraft products from regional to
states, states to national and national to international level. If

26
firms provide good quality product at affordable price with
different variety which help them to make better relationship
among the customers. There is no barrier among the country
through internet medium

. 4) Greater Opportunities to Increase Sales If firm provides true

information regarding handicraft product, give more efficient
personnel and instantaneous response, which help to increase
the sales of the handicraft products. If firm provides a variety of
services to their customers, whether it is online, advertising,
direct selling which increase the profitability of the firm?

5) More Precise Target Markets Firm should target their

customers on their geography, purchasing behavior and
demographic information, which help them to increase the sale
of the products with common interest.

6) Improved Marketing Research Through this process, we get

feedback of customers regarding the products quality, services,
delivery system, variety and customers give other new
suggestion, to increase the new experiment in firm.

7) No Entry Barrier Internet marketing provides the equal

opportunities to the entire small, medium and large scales firms
to promote their products it needs small amount of money to
start marketing through internet, through this medium people
get excess any types of information about the handicraft
products

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 S.W.O.T ANALYSIS

STRENGTHS

THREATS WEAKNES
S

OPPORTUNITIE
S

28
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 labor rates that result to competitive price.
 Need low capital investment.
 There is flexible production flexibility.
 Low barriers of new entry.

Advantages and Critical Success Factors:

 Easy creation and development of production centers.

 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.

29
  Inadequate information of new technology.
 Inadequate information of current market trends.
 Less interest of young people in craft industry.
 Lack of skilled labor.
 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.

 Balance between high demand and supply.
 Quality products produced by competing countries like
China, South Africa.
 Better Trade terms offered by competing countries.
 Increased and better technological support and RandD
facility in competing countries.

30
 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 labor 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.

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 There are inadequate training centers to develop skilled
craftsmen
 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 centers 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.

32
  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 labor productivity in a high labor
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.
By implementing following model, the performance of
Handicraft Industry can be improved and the greater Value
addition can be done:

 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 Upgradation
 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.

33
 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.

34
 OVERVEIW
Before industrial development, the handicrafts industry was a
potential economic advantage for the country. In recent years,
the importance of handicrafts has 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 the developed and the developing countries.
The 90-95% of the total industrial products of the world is
produced in small workshops run by less than 100 people.
The Indian handicraft industry is one of the largest employment
generators and accounts for a significant share in the country’s
exports. The industry is fragmented and unorganised with more
than seveb million regional artisans and more than 67,000
exporters promoting regional art and craftsmanship in the
domestic and global markets.
The total export of handicrafts from India is expected to nearly
double to $2.7 billion in FY 2015-16 and is expected to increase
further to $3.8 billion by FY 2020-21. In 2015-16, Indian
handicrafts export stood at $4.5 billion which is up by
approximately 15.4% of the previous year’s exports. Exports of
Indian handicrafts have increased at around 16.4% since the last
five years.
However, it can be said that the Indian handicraft industry is
altogether a sweet tale. It has its own drawbacks. The Hindu
talked about a recently published report titled ‘Crafting a
Livelihood’ released by Dasra in collaboration with The

35
Rothschild Foundation, which traces the “current craft lands-
cape in India”. With a meagre 2% share in the global handicrafts
market, India definitely has a tremendous scope for growth in
this sector. According to the report, the current scenario of
Indian handicraft industry is marked by a loss of demand,
dwindling skills and difficulty in catering to new markets and
rural artisans moving to urban areas looking for often low,
unskilled employment. Over the past 35 years, the number of
artisans has decreased by more than 30%. This fact highlights the
requirement to reinvest in artisans in order to safeguard history,
culture, and an important source of livelihood.
To add impetus to this industry, NGOs play a key role. Non-
profits such as Dastkar work towards upskilling artisans and
showcasing their products through fairs. Private players such as
Indian Roots and Jaypore provide the much needed market
linkage for Indian handicraft and handloom. Through its
initiatives and schemes, the government influences the entire
value chain which includes raw material sourcing, financing and
maximum wages among other critical issues.
According to the Hindu, despite the fact that the handicraft
industry is fragmented and unorganised, the Indian handicraft
industry employs 6 to 7 million regional artisans and has more
than 67,000 exporters engaged in promoting its wares in
domestic and foreign markets
Online platforms like Direct Create, which is an online
community of artists, artisans, makers, buyers and designers

36
are involved in the promotion of exclusive handmade creations.
The founder of Direct Create, Sheela Lunkad says, “In a way I feel
no traditional craft is really dying. What’s missing is market
linkage, design interpretation and communication with people
who really want to buy.”
Sheela Lunkad identifies the problems with the handicrafts
industry and also offers solutions. She says, “We have to be able
invest time and lots of energy into creating a handicraft industry
that is not reduced to making just tacky souvenirs. We also have
to look at good design. The story of the craftsman is missing from
the handicraft, which is why this sector is losing patronage in
India.”
But handicrafts also need a steady generational transferring of
skills, which has slowed, or in some cases, completely
disappeared in India’s artisanal communities. “Not being able to
cultivate the artistic capability of human beings and putting
them into a mechanised employment is a disaster for humanity,”
says Lunkad. “The artist needs to take pride in his craft, earn a
decent living and feel that he has utilised his creative energy.
That is something that we as citizens and groups of people can
make possible easily.”
There is also a growing demand for Indian handicraft products in
China. “China has been known in the world to be a handicrafts
producing country. So far, it has been giving tough competition
to the Indian handicraft industry. However, due to large-scale
mechanisation, there is a low unit value for Chinese products and
hand work is done only for finishing. This is where

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the demand for Indian products come in,” Arvind Vadhera,
Chairman, EPCH, said on the sidelines of an event.
He said Indian products offered uniqueness in craftsmanship,
finish and presentation. Handicraft exports to China in 2008-09
stood at Rs. 418.33 crore. It rose to Rs. 945.72 crore during 2010
-11, registering a 94.07% growth. The products exported to
China included metal craft, hand printed textile, scarves, fashion
jewellery, art ware and wood craft products among others.
Today, Indian handicraft industry is the second largest
employment creating sector in the country. The Indian
handicraft industry has seen a wonderful growth of 15% in a
decade. The Indian handicrafts industry is flourishing at a faster
pace with turnover from $1.2 million to $1.9 million in the last
decade. Handicrafts exports in the global market are increasing
with each passing day with annual growth rate of more that 15%
in 10 years time. With the increasing turnover of handicrafts
exports turnover, this sector has created around 20 lakh new job
opportunities as well.
According to Rina Soonawal Kouli, Editor-in-chief, YOJNA, though
handicrafts sector in India is more than Rs. 10,000 crore industry
and provides employment to about 70 million people, its share
in the global market is negligible- not even 2% of the world
export trade of about US$ 230 billion.
The sector is already relying on countries like the US, UK,
Germany, France, Japan, Saudi Arabia, Canada and Italy- which
are the major handicraft exports destinations for India but

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demands in these countries have either reached a saturation
point or it is decreasing. The required emphasisis not laid to the
global emerging markets mainly Latin American, CIS, Australia
and African countries that have shown a positive growth rate in
the past one decade.
So much so, if one compares India’s handicrafts exports with
small countries like Bangladesh, Pakistan and Sri Lanka- the
situation is no encouraging. Countries like China, which has far
less variety and cultural richness, are exporting more than
double of what India is trading in the international market.
According to a rough estimate, China’s share would continue to
grow exponentially due to its high production capacity and low
labour cost.
If experts of the industry are to be believed, India has
tremendous scope and opportunity to become world’s leading
player in the handicraft sector. “We have everything which is
needed for handicraft. Low cost labour, cultural heritage, highly
skilled craftsmen, rich diversity and a large number of traditional
arts-only a part of which is exposed to the government. Need of
the hour is to promote the virgin arts, explore new areas and
their arts and show it to the world, rest the market would do
itself”, says Navaratan Samadaria- flag bearer of Indian
handicrafts industry who chaired the Export Promotion Council
for Handicrafts (EPCH) for more than a decade and was
instrumental in starting world’s one of the largest handicraft B2B
fair in India in the 1990s.

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 Conclusion

Handicraft export has witnessed sharp growth in the past few

years due to ever-increasing global demand. To crank up this
demand further, the Indian Government has introduced various
schemes to boost local production and incentivize
craftsmanship. Since the Indian economy is recouping swiftly
after being dented by the Covid-19 Pandemic, it is certainly a
good time for start-ups to engage with this sector in the form of
an export.

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 BIBLIOGRAPHY

Source 1
https://www.imarcgroup.com/handicrafts-market

Source 2
https://www.ukessays.com/essays/economics/handicrafts.

Source 3
INDIAN HANDICRAFT INDUSTRY (jhea.in)

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