1. INDIAN
HANDICRAFT
INDUSTRY
By
Fakhruddin Badshah

2. INTRODUCTION
DEFINATION ACCORDING TO GOVT. OF INDIA :
“Handicraft can be defined, which is made by hand; should have some
artistic v alue; 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.
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

3. CONTD.
-and traditions.
•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

4. CONTD.
•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.

5. ECONOMIC
CONTRIBUTIO
N

6. CONTD.
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.

7. CONTD.
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.
0. India’s contribution in world market is 1.2%
1. The total exports of crafts items: - Rs. 13412.92 Crore.
2. Industry’s share in India's exports:- 1.51 %

8. MAJOR
PLAYERS
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

9. MAJOR
PLAYERS
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)

10. GOVT. RULES
&
REGULATIONS

11. 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.

12. S A
W N
O A
T L
Y
S
I
S

13. Strengths:
Strengths: Weaknesses:
• Large, diversified and potential
• Large, diversified and potential
• Lack of infrastructure and
market.
market.
communication facilities.
• There is large product variety
• There is large product variety
and range is available because of
nd range is available because of • Unawareness about international
diversified culture.
diversified culture. requirements and market.
• It has strong, diversified and
• It has strong, diversified and • Lack of co-ordination between
supportiveretail infrastructure.
upportive retail infrastructure. government bodies and private players.
• Diversified product range that
• Diversified product range that • Inadequate information of new
servicedifferent market.
ervice different market. technology.
• Cheap labor rates that result to
• Cheap labor rates that result to • Inadequate information of current
competitiveprice.
ompetitive price. market trends.
• Need low capital investment.
• Need low capital investment. • Less interest of young people in craft
industry.
• There is flexible production
• There is flexible production • Lack of skilled labor.
lexibility.
flexibility. • Still confined to rural areas and small
cities and untapped market.
• Low barriers of new entry.
• Low barriers of new entry. • Lack of promotion of products.

14. Opportunities:
Opportunities: Threats :
•• Rising demand for handicraft
Rising demand for handicraft • Competition in domestic market.
products in developed countries such
products in developed countries such
as USA, Canada, Britain, France,
as USA, Canada, Britain, France, • Balance between high demand
Germany, Italy etc.
Germany, Italy etc. and supply.
• Developing fashion industry requires
• Developing fashion industry requires • Quality products produced by
handicrafts products.
handicrafts products. competing countries like China,
South
• Development of sectors like Retail,
• Development of sectors like Retail, Africa.
Real Estate that offers great
Real Estate that offers great
requirements of handicrafts products.
requirements of handicrafts products. • Better Trade terms offered by
competing countries.
• Development of domestic and
• Development of domestic and
international tourism sector.
international tourism sector. • Increased and better
technological support and R&D
• e-Commerce and Internet are
• e-Commerce and Internet are facility in competing
emerged as promissory distribution
emerged as promissory distribution countries
channels to market and sell the craft
channels to market and sell the craft
products.
products.

15. FINDINGS
&

16. 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.