Marketing of Rural Artisan Products

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Introduction
India is one of important suppliers of handicrafts to the

world market and the sector has been amongst Indias leading foreign exchange earners.
Export earnings from Indian handicrafts industry for the

period 1998-99 amounted to US$ 1.2 billion (Rs.5,400 crore). Yet, this sector is still not completely explored in light of capability and potential that exists for it.
Central and state government entities, voluntary non-

government organisations and co-operatives all are trying to achieve holistic development of Indian handicraft industry, large part of which has its origin in tiny hamlets across India. 21-2

Introduction
The development of rural artisan sector will lay a strong

foundation for the sustainable development of the rural economy. It will lead to increased disposable income of the rural artisans who are mostly belonging to the relatively under privileged sections of society.

This will save the relatively less informed and less

privileged rural artisan from the exploitative designs of

traders and intermediaries, who make the maximum at the cost of craftsmen and customer.
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Artisans
The specialists, who produce goods and render

services, for and to others, are what we call artisans today.

They are heir to the traditions and make it into a

work of art.
Most craft people have learned their skills from

their parents and grandparents as a continuity of tradition, which is being passed on from one generation to another.
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Artisans
As a socio economic group, artisans are amongst the

poorest. Research shows that households headed by artisans, in general have much lower net wealth and almost all (90%) are landless. Some have managed to adapt to changing times, and a few even thrive but most of them live in dismal poverty.
Many of artisans have given up, and moved away from

their traditional occupations. Others continue because they do not know anything else.

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Artisans
Research indicates that majority of the crafts persons

and their progeny do not want to join the crafts sector; they would not even mind the tradition coming to an end.

In one of the studies it was revealed that in more than

half the traditional leather artisan households, several family members have given up leatherwork, and are

working as casual labourers.

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Handicrafts
Handicrafts are rightly described as the craft of the

people. In India, craft is much more than an industry; its produce is viewed as a creation and work of art.

As Craft Council points out, no Indian craft is ever

purely decorative. Most of them while fulfilling a positive need in daily life of people, also act as a medium of self-expression.

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Handicrafts
Craft is also viewed as one of the strategies adopted

by individuals/ households to support themselves and to build on their existing assets.

Task Force on Handicrafts for the VIII Five Year Plan

defined the term handicrafts in 1989 as: Handicrafts are items made by hand, often with the use of simple tools, and are generally artistic and/or traditional in nature. They include objects of utility and objects of decoration6.
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Characteristics of Indian Handicraft Industry

Highly labour intensive Low capital investment: minimum expenditure on

infrastructure or training to set up, no expensive investment in energy, machinery or technology

Cottage or home-based based industry Unorganised and decentralized sector: spread all over

the country
Part of work executed on part-time basis Uses existing skills and locally available materials. In synthesis with socio-cultural milieu: does not disturb

the cultural and social balance of either the home or the community.
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Characteristics of Indian Handicraft Industry

Many agricultural and pastoral communities depend

on their traditional craft skills as a secondary source of income in times of drought, lean harvests, floods or famine.
Handicraft skills are a natural means to social and

financial independence
Traditionally have been viewed more as a part of the

welfare sector, which needs to be propped up by subsidies and grants.

Institutions (Boards and Corporations) have been set

up by central and state governments for institutional, financial and marketing support
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Nature of Indian Handicrafts

Handicrafts are classified in two categories on basis of use they are put for:
Articles of everyday use Decorative items

Woodwork: India is known for its lacquered wood

articles and includes:

Ornately carved decoration pieces

Absolutely simple wooden handicrafts

Toys Furniture items
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Nature of Indian Handicrafts

On basis of media on which they are developed,

handicraft are classified:

Textile handicrafts: This segment provides employment to 5 lakh people apart from those involved in designing,

block making, weaving and packing. It includes:

Hand printed textiles: block and screen-printing, batik, kalamkari (hand printing by pen) and bandhani (tie and die) for bed-covers, dress material to upholstery and tapestry. Embroidered articles of silk and cotton often embellished with mirrors, shells, beads, and metallic pieces. Embroidered leather, felt and velvet products.
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Nature of Indian Handicrafts

Stone Craft: Includes carved stoneware made of marble,

alabaster or soapstone, inlaid with semiprecious stones.

Glassware and Ceramic: Glass and ceramic products are

a fast growing segment amongst the handicrafts that are exported from India.
Clay, Metal and Jewellery: They are made from precious

metals, base metals, precious and semi-precious stones. Brass, copper, bronze, bell metals are used for a creating variety of handicrafts.
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Key Areas for Production of Handicraft

Type of Handicraft
Art metal ware Wooden Art wares : :

Areas Renowned for Particular Handicraft

Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Rewari, Thanjavur, Mandap, Beedar, Jagadhari, Jaselmer Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna, Madras, Behrampur (WB)

Hand printed Textiles & Scarves

Embroidered goods Marble & Soft Stone Papier Mache Crafts Terracotta Zari & Zari Goods Imitation Jewellery:

:
: : : : : :

Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer

Kutch (Gujarat), Jaisalmer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu, Dharmshala / Chamba & Srinagar Agra, Madras, Baster, Jodhpur Kashmir, Jaipur Agra, Madras, Baster, Jodhpur Rajasthan, Madras, Baster Moradabad, Sambhal, Jaipur, Kohima (Tribal)

Artistic Leather good

lndore, Kolhapur, Shanti Niketan (WB)

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Selected crafts clusters for enhanced exports

Craft Cluster Area Moradabad(UP) Saharanpur (UP) Jodhpur (Rajasthan) Narsapur (A.P.)

Type of Handicraft : For Artmetalwares and imitation jewellery : For Wooden handicrafts & Wrought iron : For Wooden, Wrought Iron and Sea Shell

: For Lace and Lace goods

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Country-wise Exports of Handicrafts

Countrywise Export of Handicrafts
1800 1600 1400
1139 1440 1642

Rs. in Crores

1200 1000 800 600 400 200 0

69 79 205 235 151 177 536 466 164 190 195 117 135 171 108 453 122 57 68 539 954

1997-98 1998-99

Ca na da

Fr an ce G er m an y

Ne th er la nd Sa s ud iA ra bi a Sw it z er la nd

Ja pa n

. U. K

Au st ra

O th er s

lia

ly

Ita

U. S

.A .

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Handicraft-wise Key Target Market for Exports

Type of Handicraft
Art Metal wares Wood Wares Hand Printed & Textiles & Scarves Embroidered & Crocheted Goods Shawls as Art wares Zari & Zari goods : : : : : :

Key Target Export Market

U.S.A., Germany, U.K. & Italy U.S.A., U.K., Germany & France U.S.A., U.K., Germany & Canada U.S.A., Saudi Arabia, U.K., Germany Saudi Arabia, U.S.A. Japan & U.K U.K. U.S.A., Japan & Saudi Arabia

Imitation Jewellery
Miscellaneous

:
:

U.S.A., U.K., Saudi Arabia & Germany

U.S.A., Germany, U.K. & France

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Importance of Indian Handicraft Industry

Provides additional earning opportunity to rural

population, especially during poor agricultural seasons when it is critical.

Adds to overall disposable income of rural economy. High potential for export and foreign exchange earnings:

According to the Director-General of Commercial Intelligence and Statistics, Craft exports in India were 16% of total exports, in 1972-83. From 1960-1984, craft exports earned 90 billion in foreign exchange for India.
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Importance of Indian Handicraft Industry

Total exports of Handicrafts went up to Rs.9,27,050 crore from

Rs.2,54,318 crore between the years 1992-93 to 2000-019. The average net foreign-exchange earnings for all handicrafts and handlooms is over 90% of the value of output, which is well above the level recorded by exports from more organized sectors- both small and large.
It provides employment to millions of artisans, which include a

large number of women and people belonging to weaker sections of society.

The 1984 Report on Handicrafts published by the All India

Handicrafts Board states that 21,76,740 people worked full time and 4,33,260 worked on part time basis for craft production. In the year 2000-2001 this figure went up to 4.761 crore persons per year.

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Importance of Indian Handicraft Industry

The number of new jobs created by craft industries was

almost as large as the number created by the private and public sectors combined.
For every rupee of value added in this sector, the capital

required is roughly 1/3rd of what is needed in large industry.

For generation of employment of one person in large-

scale sector it requires six to ten times more investment than in small-scale sector.
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Importance of Indian Handicraft Industry

For a large and overpopulated country like India, only

small scale can provide opportunities of work all over the country.
It can ensure more equitable distribution of national

income.
This sector is maintaining the culture, heritage and

tradition of a region that are so vital to the cultural identity of that particular region.

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Challenges for the Rural Artisan Sector

Disappearing Markets: Substitution by Mass Production Goods:

Cheap plastic products have wiped out the market for earthenware in many types of handicrafts. In hugely competitive market, advertising and global trade scenario, artisans are loosing on account of lack of viable support systems. Mass-produced goods are steadily replacing utility items of daily use made by craftspeople, destroying their very livelihood. With ever-increasing competition from mill-made products and decreasing buying power of village communities due to prevailing economic conditions, artisans have lost their traditional rural markets and their position in community. It means that craft producers need more support than ever if they are to become viable and competitive.
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Challenges for the Rural Artisan Sector

Abject Poverty: In spite of the high percentage of people

employed in this sector and huge export earnings most craft people live in abject poverty. The average income derived by a craftsperson is Rs 2000 per month. For an average family of five members this amounts to Rs 13.50 per day per head.
Lack of Financial Support: There is reluctance at the

financial institutions local branch level or procedural delay on account of lengthy paper work to provide financial assistance to the craft people. They sometime have to pay bribe even to get subsidies from the government.
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Challenges for the Rural Artisan Sector

The Unorganised and Diverse Nature of Craft

Activities: The nature of this industry has prevented politicians and policy makers in India from understanding or formulating effective policies or strategies by which this segment of the population can be part of a general advancement.
Lack of Proper Quality Control and Standardisation:

Along with the aesthetic and traditional values that the handicrafts represent, they must maintain some degree of standardisation and quality control.
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Challenges for Rural Artisan Sector

Correct Sizing: The sizes of the cotton made-ups need

to be as per conventional standards so that the exquisitely designed fabrics and made ups can be ordered in bulk by the reselling institutions.
Lack of Training and Feedback on Product Design and

Product Development: Market trends and consumer preferences for the colour, design, patterns change quite fast these days. By the time the rural craftsmen have changed to the newer set of preferences, they have already changed significantly to something different.
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Challenges for Rural Artisan Sector

Lack of Marketing Avenues with Least Number of

Intermediaries: The exhibitions, fairs and handicraft stores are now prevalent in much larger number than they were earlier. But still more needs to be done.
Fluctuating Rates of Raw Material: In carpet industry

small producers making handmade carpets compete for same supplies with large factories.
Inadequate Infrastructure: The infrastructure with which

rural artisans produce their handicraft is quite inadequate in comparison what there should be in order to satisfy the consumer demand.
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Challenges for Rural Artisan Sector

Wages for the Craft People are Meager: Even the highest wages are

low relative to the earnings of many others in the agriculture or other non- farm activities. Weber, in her study on Chikan embroidery workers in Lucknow, India discusses that low skilled work been promoted for very low wages. Quality of work can only be sustained if the craft people can obtain a living through working for the market.
Irregularities in the Supply of Work: It means there is forced

underemployment. Even though the State Governments have opened various centers for the sale of finished products, these do not ensure sales high enough to sustain craft people (through out the year would be ambitious) even for six months.
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Challenges for Rural Artisan Sector

Lack of Working Capital and Easier Access to Credit:

Lack of finance and cash flow is crux of craft peoples problems and restricts the economic development. Inability to access government funds leads them to taking loans from local middlemen and moneylenders- at exorbitant rates of interest. This leads many Indian craftspeople into a form of bonded labour. As more than 90% of rural artisan households are landless they have minimal resources to mortgage or use as collateral for a loan. Thus, informal credit plays a critical role in the production and expansion of artisans enterprise.
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Challenges for Rural Artisan Sector

Technological Obsolescence: This gives factory sector

an edge over artisan sector in terms of efficiency and

quality. Modern technology has enabled machines to imitate even the most intricate designs that were once the

exclusive domain of the artisans. Any form of innovation

implies an element of risk and investment of capital. Given that most Indian artisans live on the margin of subsistence, they have virtually no reserves to invest in technological innovation (physical capital).
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Challenges for Rural Artisan Sector

Lack of Marketing Acumen: The rural artisans belong to lowest

rungs of the caste hierarchy knowing only how to create handicrafts as means of livelihood to support their families in the hard conditions in the backward regions of the country. But, they might not be good at skills to market them in the remunerative markets in bigger towns and cities.
Lack of Access to Key Markets: Difficulty of access to urban areas

that are the main markets for craft products.

Production Problems: Rural artisans lack guidance in product

design and development based on an understanding of the demand of the market. Even when they know what has to be done in most of the cases they do not have adequate means to do so.
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Government Policy for Handicraft Sector

Policy Instruments:

Central and state governments formulate different policies for the promotion of artisans and handicraft sector. But, states assist particular set of handicrafts which represent a viable existing or potential export resource and manifests the cultural prominence of those handicrafts.

The Central government provides consultation, funds, grants and loans to encourage the states to boost the production and sale of their handicrafts.
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Government Policy for Handicraft Sector

There is no dearth of schemes to provide artisans with working or fixed capital. Mayox points out that for often than not, craft people are unaware of the schemes and when they have the information there are problem in accessing those schemes. If they have heard of a particular scheme, they cannot cope with the complex procedure to avail its benefits and if they do manage to follow the procedure, bureaucratic bottlenecks and delays more often than not discourage the intending borrower.
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Government Policy for Handicraft Sector

Review of the government plans reveals that schemes

up to the end of the Seventh Plan have not been able to provide assistance to large sections of craftspeople, productionrelated inputs and the marketing of their products is still out of the realm of artisans reach. They largely depend on private tradesmen, or middlemen who act as intermediaries between craftsperson and market: and reap all the profits.
The Government of India (Planning Commission, 1988)

itself has pointed out the lack of coordination both at the grassroots and at the national level, as they are looked after by different departments/organisations.
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Government Policy for Handicraft Sector

In spite of schemes that exist for them, craftspeople

are unable to benefit, as there is lack of strong

institutions working in their favour. Transformation in organisational structures and processes can help

in increasing craftsmens access to schemes and

services that are planned for them.

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Institutional Infrastructure Network for Development of Rural Artisans

Khadi and Village Industries Commission (KVIC): A statutory body established by an Act of Parliament. It provides employment opportunity to 82.77 lakh persons. Central Handicraft Corporations / Bodies / Associations

The All India Handicrafts Board: The board studies technical, marketing, financial, organizational, artistic and other aspects of handicrafts and formulates plans on these lines. It also advises and provides assistance to the state Governments for planning and executing schemes for the development of handicrafts.

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Institutional Infrastructure Network for Development of Rural Artisans

All India Handloom Board: It advises the Government on various aspects of handloom development. Central Silk Board: Central Silk Board supplements efforts of states by providing necessary support for R&D and extension and training through its countrywide network of units. It organises production and supply of quality silkworm seed, mulberry cuttings etc. and undertakes directly and with State Sericulture Departments, implementation of various projects.
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Institutional Infrastructure Network for Development of Rural Artisans

Jute Advisory Board: It advises Govt. on matters of Jute

(Licensing & Control) Order, 1961 including production estimates of jute and mesta.
The Handicrafts and Handlooms Export Corporation of India

(HHEC) is a subsidiary of the State Trading Corporation of India, which designs strategies to develop new foreign markets and expand traditional ones and to introduce new products suitable to the needs of the consumers abroad. The Corporation undertakes and executes wholesale orders, conducts retail sale operations through retail shops abroad, and participates and sells in major exhibitions of the world. HHEC also helps private exporters by affiliating them as business associates. It undertakes publicity and promotional measures for the export of handicrafts and handloom products.
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Institutional Infrastructure Network for Development of Rural Artisans

The North-Eastern Handicrafts & Handloom Development

Corporation, Shillong: Tries to develop and boost the sales of

handloom & handicrafts goods from northeastern region.

The Central Cottage Industries Corporation, (CCIE): It is a

registered society, which had taken over from Indian Cooperative Union.

The All India Handloom Fabrics Marketing Cooperative Society

Ltd.: It is a society, sponsored and supported by All India Handloom Board.

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Institutional Infrastructure Network for Development of Rural Artisans

Attached Offices
a. Office of the Development Commissioner for Handlooms
b. Office of the Development Commissioner for Handicrafts

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Institutional Infrastructure Network for Development of Rural Artisans

All India Associations There are all India organizations for Indias three most

popular handicrafts items: hand printed textiles, carpets and zari. These associations serve as a platform for consultations among manufacturers and exporters on one hand and the Handicrafts Board on the other. The Board uses the following associations to disseminate information useful to craftsmen:
a. All India Carpets Manufacturers Association, District Varanasi, U.P. b. All India Federation of Zari Industry, Surat, Gujarat. c. All India Textile Handprinting Industries Federation, Mumbai.
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Institutional Infrastructure Network for Development of Rural Artisans

Related Organisations National Handlooms & Handicrafts Museum (NHHM), New Delhi State and Union Territories Corporations / Departments Social- Voluntary Organizations Certain voluntary organizations are running Regional Handicrafts Training Institutes for Women, under the All India Handicrafts Board.
Handicrafts Teacher's Training College (The Arts and Crafts Society), Mumbai. Regional Training Institute of Handicrafts (Bharat Sevak Samaj), Dharwar. Regional Handicrafts Training Institute for Women, (Andhra Mahila Sabha) Hyderabad. Regional Handicrafts Training Institute for Women, (Karma Kutir), Calcutta.

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SWOT Analysis of Indian Handicrafts Industry

Strengths:
Indian handicraft are quite competitive on the price front because

relatively low wage labour is available in the craft sector in a good number
Low capital investment and high ratio of value addition Aesthetic and functional qualities of Indian handicrafts Indian handicrafts have a traditional appeal Indian handicrafts are unique and are based on age old cultures Increasing emphasis on product development and design

upgradation
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SWOT Analysis of Indian Handicrafts Industry

Weaknesses:
Inconsistency in quality
Inadequate market study Inappropriate marketing strategy Lack of adequate infrastructure and communication facilities to

develop/modify handicrafts as per market

Limited capacity; so Indian craftsman and organisations can

handle relatively smaller orders

Untimely delivery schedule; becomes a challenge in demanding

export markets
Unawareness of international standards by many players in the

market
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SWOT Analysis of Indian Handicrafts Industry

Opportunities:
Rising appreciation for Indian handicrafts in the developed

countries
Widespread novelty seeking buying behaviour Large discretionary income at disposal of consumer in

developed countries
Growth in search made by retail chains in major importing

countries for suitable products and reliable suppliers.

Use of e-commerce in direct marketing
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SWOT Analysis of Indian Handicrafts Industry

Threats:
Better quality and reliability of products produced by

competitors from Europe, South Africa, South Asia, etc.

Better terms of trade by competing countries Consistent quality and increasing focus on R&D by

competing countries
Better packaging of handicrafts exported from other

countries
Stricter international standards
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Marketing Strategies for Development of Rural Artisan Sector

Market Research: Rural artisans need to conduct at

least informal market research to understand the

changes in the preference of customers with respect to colour, shape and design.

Entrepreneurial Training: Provision of entrepreneurial

training for rural artisans can help them to better manage their micro-enterprises.

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Marketing Strategies for Development of Rural Artisan Sector

Niche Marketing: Price competition has been intensified

by increasing quantity of Chinese and Asian products.

Non-institutional Credit (by NGOs etc): This can be of

vital help for purchasing raw materials or to expand production systems and assist in breaking out of the stranglehold of technological obsolescence and also to ensure quality production.

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Marketing Strategies for Development of Rural Artisan Sector

Establishment of Web Presence: Internet is very

effective tool to establish an organisation without the help of intermediaries.

Support in Establishing Retail Outlets: Govt. can help

the organised co-operatives of craftsmen to establish retail outlets in the cities where there can be good demand for rural craftwork.
Provision of Marketing Platforms by Voluntary

Organisations: Voluntary organisations can provide a platform for marketing of handicrafts, learning and experience sharing amongst rural crafts entrepreneurs.
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Marketing Strategies for Development of Rural Artisan Sector

Provision of Recognition and Consultancy: Some

craftsmen are highly talented in their field but require a

little handholding. Recognition by eminent personality or organisations can help them to secure an export

order.
Provision of better tools: To improve quality and productivity of the craftwork, govt. & other institutions can provide better tools

and equipments to craftsmen on subsidized rates as part of

special scheme for craftsmen those are below the poverty line.

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Marketing Strategies for Development of Rural Artisan Sector

Displaying of Artisan Products at Indian International

Festivals: By putting on display some of the products of micro-entrepreneurs on India international festivals like: India Day Celebration in Washington, etc. across the globe, can provide much needed promotion to the work of rural craftsman.

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Marketing Strategies for Development of Rural Artisan Sector

Export of Craft Work: If the craftsmen can organise themselves

in the SHG or co-operative societies then they can jointly try to explore export markets. Before developing an export strategy for the organisation, it must be:
Awareness of Export Regulations Developing Product Literature Awareness about different Distribution Channel for Exports
Appointing Wholesalers Establishing link with Importers/distributors Commission agents Department Stores Mail Order Tele-shopping Companies
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Livelihood Approach

Marketing Strategies for Development of Rural Artisan Sector

Disintermediation: To eliminate middlemen and establish a direct contact between craftsman and customer so that rural artisans extract more value for their crafts and at the same time customer also has to pay relatively less amount. Government can play a key facilitating role by laying down elaborate direct marketing plans like:
Organising Self Help Group (SHG)

Organising of Exhibits by Government Bodies

Organising of Regional Craft based Fairs Formation of Co-operative Societies of Craftsmen
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Marketing Strategies for Development of Rural Artisan Sector

Establishment of Trusts: It might not be feasible that every

time few craftsmen come together and form a SHG or Cooperative they will be successful. Most of times result can be otherwise. The right way could be a two-stage process.
Stage-I: Till the time the craftsmen are ready to be on their own some trust or organisation can do the handholding. Trust can supply raw material and later purchase everything produced from raw material, on a piece rate basis for value-added services provided by the artisans. Stage-II: When the group understands business model to some extent and demonstrates capability and willingness to be on its own. Then the trust can facilitate the formation of organised group with a distinct organisational structure.
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Benefits of the Institutional Set-up

Regular training programme can be conducted to adjust to

changes in size, colours and designs and also to equip new members in the organisation. Workshops can be organised for development and up gradation of craft based skills.
The artisans can benefit from a yearly bonus, interest free loans,

compulsory savings and individual life insurance.

Initiative of uniting rural artisans can keep alive traditional craft. The organisation can implement interventions in areas of

education, health, economic development, running schools, womens collectives.

Artisans can invest their income from craftwork in agriculture to

bring improvement in income from cultivation.

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Benefits of the Institutional Set-up

The temporary migration of artisan families can stop. Earnings

from crafts can supplement household income to sustain their livelihood.

Contributes in mitigating the impact of sudden shocks at the

community level. During outbreak of calamities, organization can extend support to families and work for development of the weaker section of the society, women and children.
Helps in creating a mass awareness of craft and steady income for

artisans.
It gives members social prestige and group identity.
It provides feeling of belongingness and ownership. Prevents artisans from debt at exorbitant rate of interest
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Conclusion
Rural artisan products already have a good market not

only in the cities within India but across the globe. What they need is little bit of handholding and genuine support. This can be provided by government organisations, voluntary organisations and the corporate sector.
Rural craftsmen will have to organise themselves into

cooperatives and Self Help Groups to achieve the optimum benefit of institutional, financial and marketing support that various organisations intend to provide them with.
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Conclusion
Holistic thinking and integrated approach in a multi-

level, multi-organisational approach can lead to sustainable development of rural artisans and handicraft sector.

Provision of adequate infrastructural, financial and

marketing support to rural artisans can usher in a new phase of sustainable development in the rural areas.

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Summary: Points to Ponder

India is one of the important suppliers of handicrafts to

the world market and this sector has been amongst Indias leading foreign exchange earners.
This sector is still not completely explored in light of

capability and potential that exists.

Development of rural artisan sector will lay a strong

foundation for the sustainable development of the rural economy. This will save them from the exploitative designs of traders and intermediaries, who make maximum at the cost of craftsmen and customer.
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Summary: Points to Ponder

Artisans are the specialists, who produce goods and

render services, for and to others. They are heir to the traditions and make it into a work of art. Most craft people have learned their skills from their parents and grandparents as a continuity of tradition. But, it is unfortunate that socio- economic condition of artisans is amongst the poorest.
Handicrafts are items made by hand, often with use of

simple tools, and are generally artistic and/or traditional in nature. They include objects of utility and objects of decoration.
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Summary: Points to Ponder

The characteristics of Indian handicraft industry are as

follows: highly labour intensive, low capital investment, cottage industry, unorganised and decentralized: spread all over the country, part of work executed on part-time basis, uses existing skills and locally available materials, is in synthesis with socio-cultural milieu and many communities depend on traditional craft skills as a secondary source of income in tough times.
Handicrafts on the basis of the use are classified as: articles

of everyday use and decorative items. On the basis of media on which handicrafts are developed, they are classified as: textile handicrafts, woodwork, stone craft, glassware and ceramic, clay, metal and jewellery.
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Summary: Points to Ponder

Some areas have come to be known for certain type of

handicrafts. Industry clusters for that handicraft have developed in that region. Some of them are being developed as clusters for exports.
Three leading export markets for Indian handicrafts are USA,

UK and Germany; they constitute 31%, 11% and 11% of the total handicrafts exported from India respectively.
Crafts sector has contributed to the economy at the macro

level: in terms of foreign exchange earnings and at micro level: through employment.
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Summary: Points to Ponder

For every rupee of value added in handicraft sector, the

capital required is roughly one-third of what is needed in large industry.

For generation of employment of one person in large-scale

sector it requires 6 to 10 times more investment than in small-scale sector.

This sector maintains culture, heritage and tradition so vital

to cultural identity of a region.

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Summary: Points to Ponder

Challenges for the rural artisan sector: disappearing markets,

substitution by mass production goods, abject poverty, lack of financial support, unorganised and diverse nature of craft activities, lack of proper quality control, standardization and correct sizing, lack of training and feedback on product design and product development, lack of marketing avenues with least number of intermediaries, fluctuating rates of raw material, inadequate infrastructure, meager wages for craft people, irregularities in the supply of work, lack of working capital and easier access to credit, technological obsolescence, lack of marketing acumen, lack of access to key markets and production problems.
Govt. support for handicraft sector has been through: policy

instruments, provision of financial and infrastructural support

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Summary: Points to Ponder

The institutional network of different organisation that exists to

support the development of Indian handicraft industry includes: Khadi and Village Industries Commission, All India Handicrafts Board, All India Handloom Board, Central Silk Board, Jute Advisory Board, Handicrafts and Handlooms Export Corporation of India, North-Eastern Handicrafts & Handloom Development Corporation Ltd., Shillong, Central Cottage Industries Corporation, Pvt. Ltd. (CCIE), All India Handloom Fabrics Marketing Cooperative Society, Office of the Development Commissioner for Handlooms, Office of the Development Commissioner for Handicrafts, National Handlooms & Handicrafts Museum, New Delhi and State and Union Territories Corporations / Departments etc.
There are all India organizations for popular handicrafts: All India

Carpets Manufacturers Association, All India Federation of Zari Industry and All India Textile Handprinting Industries Federation.

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Summary: Points to Ponder

Number of social organizations including non-profit registered

societies and cooperatives have also been established to support the field of handicrafts.
Marketing strategies for rural artisan sector: disintermediation

through: organising Self Help Group (SHG), organising of exhibitions by government bodies, organising of regional craft based fairs, formation of co-operative societies of craftsmen and establishment of Trusts. Market research, entrepreneurial training, non-institutional credit by NGOs, niche marketing, establishment of web presence, support in establishing retail outlets, provision of marketing platforms by voluntary organisations, provision of recognition and consultancy, displaying of artisan products at Indian international festivals and provision of better tools can also greatly benefit the rural craftsmen in effectively marketing their products.

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Summary: Points to Ponder

Export of craftwork is possible if craftsmen can organise

themselves in SHG or co-operative societies. Then they can jointly explore export markets. For this they need to be: aware of export regulations, develop product literature, be aware about different distribution channel for Exports
The government policies need to consider livelihood approach,

which puts the people at centre of development and takes an informed view of the opportunities, constraints, objectives and interactions that characterise the lives of the artisans instead of the input oriented approach.
Rural artisan products have a good market in cities of India and

across the globe, what they need is little bit of handholding and marketing support.
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