INDIAN

HANDICRAFT
I NDUS TR Y
By :-
Huzefa Amin
 I N T R O D U C T I O N
DEFINATION ACCORDING TO GOVT. OF INDIA :
“Handicraft can be defined, which is made by hand; should have some artistic value;
they may or may not have functional utility.”
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.
Copper is a prominent raw material used in the handicraft industry. It can be
used to create tons of various handicraft products, most especially decorative pieces.
INDIAN HANDICRAFT INDUSTRY:
The Handicraft Industry is one of the important productive sectors.
Various attempts have been made to define this broad and diversified 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
 About Products
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.
This sector is economically important from the point of
low capital 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 andicrafts industry
•Basically 9 handicraft items are mostly exported from India
that are metal ware, wood ware, hand-printed textiles, hand-
knotted and embroidered textiles, leather goods, stoneware,
carpets and floor coverings.
 Contribution in
Country’s Economy
 Role Of Handicraft Industry In development of
Country
1. Industry is playing a major role in the development of Indian
economy.
2. As per the latest updates, there are more than 23 million
craftspeople in India today engaged in the growth of Indian
handicrafts industry.
3. Second largest employment sector in India, just after
Agriculture.
4. 63% of exports turnover
5. The industry is spread allover the country mainly in rural and
urban areas.
6. Most of the manufacturingunits are located in rural and small
towns, and there is huge market potential inall Indian cities and
abroad.
 Growth In HANDICRAFT
INDUSTRIES
The Indian Handicraft Industry is showing continuous growth rate of
20%every year. Handicrafts industry is one of the important segments
of decentralize 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.
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.
. Industry’s share in India's exports:- 1.51 %
 M A J O R
P L A Y E R S
Crafts Areas
Moradabad, Sambhal, Aligarh, Jodhpur,
Jaipur, Delhi, Rewari, Thanjavur, Madras,
Art Metal-ware
Mandap, Beedar, Kerala & Jagadhari,
Jaiselmer

Saharanpur, Nagina, Hoshiarpor, Srinagar,

Amritsar, Jaipur, Jodhpur, Jagdalpur,
Wooden Crafts
Bangalore, Mysore, Chennapatna, Madras,
Kerala & Behrampur (WB)

Kutch (Gujarat), Jaisaimer, Baroda,

Embroidered goods Lucknow, Jodhpur, Agra, Amritsar, Kullu,
Dharmshala / Chamba & Srinagar

Marble & Soft Stone Crafts Agra, Madras, Baster, Jodhpur

 M A J O R
P L A Y E R S
Crafts Areas

Agra, Madras, Baster, Jodhpur

Terracotta

Zari & Zari Goods Rajasthan, Madras, Baster

Hand printed Textiles & Amroha, Jodhpur, Jaipur, Farrukhabad,

Scarves Sagru & Sanganer

Delhi, Moradabad, Sambhal, Jaipur,

Imitation Jewellery
Kohima (Tribal)

Artistic Leather Goods lndore, Kolhapur, Shanti Niketan (WB)

 Contribution In Economy
As Indian Handicraft Industry contributes very important role in Indian
economy. Hence For the proper functioning and operation of industry
govt. has made some policies and regulation. In India, the Ministry Of
Textile is responsible for the formulation of policy, planning,
development, export promotion and regulation of the Handicraft
Industry. Some policies & rules are as follows:
1.There are no restrictions regarding location for establishing
manufacturing units.
2.All producers of handicrafts are exempt from obtaining Industrial
License to manufacture.
3.The delicenced undertakings, however, are required to file an
Industrial Entrepreneur Memoranda (IEM) in Part 'A' with the
Secretariat of Industrial Assistance (SIA), and obtain an
acknowledgment.
S A
H
R N
O
TA

L
 Strength
• 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.
Weaknesses
• Lack of infrastructure and
communication facilities.
• Unawareness about international
requirements and market.
• Lack of co-ordination between
government bodies and private players.
• Inadequate information of new
technology.
• Inadequate information of current
market trends. • Less interest of young
people in craft industry. • Lack of
skilled labor.
• Still confined to rural areas and small
cities and untapped market.
• Lack of promotion of products.
 Opportunities Threats
• Competition in domestic market.
• Rising demand for handicraft products
in developed countries such as USA, •Balance between high demand
Canada, Britain, France, Germany, Italy and supply.
etc.
• Developing fashion industry requires •Quality products produced by
handicrafts products. competing countries like China,
• Development of sectors like Retail, Real South
Estate that offers great requirements of Africa.
handicrafts products. •Better Trade terms offered by
• Development of domestic and competing countries.
international tourism sector.
• e-Commerce and Internet are emerged •Increased and better
as promissory distribution channels to technological support and R&D
market and sell the craft products. facility in competing
countries
 Market of Handicraft Industry
1. In small units only 14% units go for outsourcing.

2. Most of the marketing people, which are from their family itself only go and meet
the existing customersnobody is searching for new buyers extensively.

3. Max. no. of units are making only traditional items, they are not making any new
innovative items like- rotating dining table, decorative coffee grinders, CD racks etc.
4. Handicraft Industry of Jodhpur is one of the biggest industries of Jodhpur
dealing in export With a yearly export of more than 1000 Cr.

5. This industry is not investing in machinery even after knowing that the main concept
behind success in this industry is bulk supply and this is the point where other
countries exceeds.

6. most of the exporters are not going for marketing and even if any firm is going then
also they are sending only their relatives there instead of any professional.