INDIAN HANDICRAFT

INDUSTRY

BY: RASHMI VERMA
IBR 5006
SEC-Q
Rashmi Verma IBR 5006
KEY FACTS OF INDIAN HANDICRAFT
INDUSTRY
Indias rich cultural diversity and heritage provides a unique and
huge resource for developing craft products.
Handicrafts industry is one of the important segment of
decentralized sector in India.
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.
Provides huge employment opportunities to artisans that include
women and people belonging to backward and weaker society (6
million artisans).
The Indian Handicraft Industry is a $100 billion industry worldwide.
Indias contribution in world market is 1.2%
The total exports of crafts items: - Rs. 13412.92 Crore.
Industrys share in India's exports:- 1.51 %

Rashmi Verma IBR 5006
Rashmi Verma IBR 5006
HANDICRAFT ITEMS
Handicrafts products can be distinguished into following:
Metal ware
Wood ware
Hand printed textiles,
Embroidered goods & Shawls
Carpets
Bamboo products
Zari goods
Imitation jewellery
Paintings & Earthenware
Jute products,
Marble Sculpture
Bronze Sculpture,
Leather Products and
Other miscellaneous handicrafts

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EXPORT OF INDIAN HANDICRAFT
Indian Handicrafts and Gifts Industry : a rapid growing
industry with a turnover from US $ 1.2 million to US$ 1.9
billion in the last decade.
A consistent annual growth rate of more than 15 per cent
over a 10-year period, from 3.6% to a respectable 10%
share in global handicraft exports.
In 2005-2006 the exports of Indian handicrafts has shown
an increase of US$ 298.87 million, i.e. the exports increases
by 10.02% over the similar period during 2004-2005.
The industry is expected to triple its export turnover to Rs.
39,000 crore by 2009-10
Create around 20 lakh new job opportunities.


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MAJOR IMPORTERS
Rashmi Verma IBR 5006
Export Promotion Council for
Handicrafts (EPCH)
A non-profit organization, established under
the EXIM policy of Government of India in the
year 1986-87.
Under the aegis of Development
Commissioner (Handicrafts),
Ministry of Textiles, Government
of India
Website: www.epch.in


Rashmi Verma IBR 5006
MAJOR OBJECTIVES
Providing commercially useful information and assistance to members in
developing and increasing exports.
Offering professional advice and services to members in areas of
technology upgradation, quality and design improvement, standards and
specifications, product development, innovation etc.
Organizing visits of delegation of its members abroad to explore overseas
market opportunities.
Organizing & Participating in specialized International Trade Fairs of
handicrafts & gifts.
Interaction between exporting community and Govt. both at the Central
and State level and representation in almost all the committees / panels of
Central and State and represents in almost all the committees / panels of
Central and State.
To create an environment of awareness through Workshops on "Export
Marketing, Procedures and Documentation", Packaging, Design
Development, Buyer Seller Meet, Open House etc. interaction with Central
and State Govt. and various other similar programmes.
Dissemination of government notification, orders, information on trade
and other relevant information to members.
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SWOT ANALYSIS
STRENGTH
Large, diversified and potential
market.
Strong, diversified and supportive
retail infrastructure.
Cheap labor rates that result to
competitive price.
Need low capital investment.
There is flexible production flexibility.
Easy creation and development of
production centers.
No need for macro-investment.
Industry provides potential sources of
employment.
Products are high value added, and
handicrafts have various applications.
Potential source of foreign revenue
because of higher export.


WEAKNESS
Lack of infrastructure and
communication facilities.
Unawareness about international
requirements and market.
Lack of co-ordination between
government bodies and private
players.
Inadequate information of new
technology.
Inadequate information of current
market trends.
Less interest of young people in craft
industry.
Lack of skilled labor.
Still confined to rural areas and small
cities and untapped market.
Lack of promotion of products.
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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 Rand D
facility in competing countries.

Rashmi Verma IBR 5006
Rashmi Verma IBR 5006