Ms.

Everil Fernandes

MBA

Sahyadri College of Engineering

And Management, Adyar,

Mangalore
 Handicrafts Introduction

Handicrafts are unique expressions

and represent a culture, tradition and
heritage of a country.

The Handicraft Industry is one of the

important productive sector. Various
attempts have been made to define
this broad and diversified industry.
Defining Handicraft Industry

Definition according to Govt. of

India:

Handicraft can be defined as,

which is made by hand; should

have some artistic value; they may

or may not have functional utility.

 The Importance of Handicrafts
The Cultural Importance:
The Economic Importance:
Handicrafts play very important role in
representing the culture and traditions
Handicrafts are hugely
of any country or region. important in terms of
Handicrafts are a substantial medium economic development.
to preserve of rich traditional art,
heritage and culture, traditional skills They provide ample
and talents which are associated with opportunities for
people’s lifestyle and history.
employment even with low
capital investments and
become a prominent
medium for foreign
earnings.
 Handicrafts: An Overview

India is a country of rich culture, history and traditions.

India is one of the major producer and supplier of Handicrafts
products in the world.
India has been major producer and supplier of handicrafts
products since very long time.
Before the industrial development, this art and industry was a
potential economic advantage for the country.
The 90-95% of the total industrial products of the world are
produced in small workshops run by less than 100 people.
In countries such as India and China, handicrafts are as high as
the mechanized products in quality and volume, and are a major
source of their foreign earnings.
countries are focusing on the development of handicraft
industry, in order to strengthen the economy.
 Handicrafts an overview…….
The Indian handicrafts industry is highly labor
intensive, cottage based and decentralized
industry.
The industry is spread all over the country mainly
in rural and urban areas.
Most of the manufacturing units are located in
rural and small towns, and there is huge market
potential in all Indian cities and abroad.
Handicraft industry is a major source of income
for rural communities employing over six million
artisans including a large number of women and
people belonging to the weaker
sections of the society.
 Handicrafts an overview…….
The Handicraft sector is highly creative sector and
produces large variety of crafts products.
This industry is localized segment
of the domestic and international market.
In India the production of
craft products are done on both large and small
scale.
Because of low capital investment people can start their
business on small scale.
Through this flexibility the demand and supply can be
managed.
There has been consistent growth of 15% over few years
and the industry has evolved as one of the major contributor
for export and foreign revenue generation.
 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
 KEY FACTS OF INDIAN HANDICRAFTS
 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

INDUSTRY
backward 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.

Industry’s share in India's exports:- 1.51 %

In spite of having diversified products, some part of Indian

market are still untapped and market is price sensitive.

Products are high priced in big and metro cities, which are
beyond, 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 and there is need of technological support and
training.
 Handicrafts industry comprises
diversified products portfolio and
Classificat
there is large variety available in ion:
market. Handicrafts products can be
distinguished into following:
Metal ware, Wood ware, Hand
printed textiles, Embroidered and
crocheted goods, Shawls, Carpets,
Bamboo products, Zari goods,
Imitation jewellery, Paintings,
Earthenware, Jute products, Marble
Sculpture, Bronze Sculpture, Leather
Products and other miscellaneous
handicrafts.
 Handicraft Exports
• Export items- Art Metal wares, Wood wares, Hand

printed textiles, Embroidered and Crocheted goods,

Shawls as art wares, Zari goods, Imitation jewelry,

Carpets, Leather products, Jute products, Paintings,

Bamboo products, Earthen ware, Marble Sculpture,

Bronze Sculpture etc.

• India's major export markets are USA, Germany, UK,

France and Japan, Saudi Arabia, Canada, and Italy etc.

Handicraft Exports
Growth
 Handicrafts Policies
• Indian Handicraft Industry contributes very
important role in Indian economy.
• For the proper functioning and operation of industry
it is very essential to have some policies and
regulation in place.
• In India, the Ministry Of Textile is responsible for
the formulation of policy, planning, development,
export promotion and regulation of the Handicraft
Industry.
• There are several other bodies and organizations
which help to formulate and execute these policies.
• All policies should be implemented for the greater
development of the whole industry so that it can
help to strengthen the economy.
Industrial Policy:
• There are no restrictions regarding location for

establishing manufacturing units.

• All producers of handicrafts are exempt from

obtaining Industrial License to manufacture.

• 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. No further approval is required.

 o d u ct s fa ll under the
pr
• Handicraft
e 97.
ITC (HS) cod
s a n d p a int ings,
drawing
• Paintings,
rt ic les o f w ood etc.
domestic a

Trade Policy
o m e u n d e r 9701
which c
in g s fa ll in g under
grav
• Original en
9702
u lp tu r e s c ategorized
• Original sc
under 9703
t h e c o de 9704 are
nder
• Products u
table.
freely impor
ite m s in 9 705 are
• Imports of
restricted
 Distribution Channels: Handicrafts

t S ales:
r s/D irec
ile
1. Reta

u t ion
istri b
n d
c o m mo
m o st ft s in
i st h e di c r a
Th i s g h a n e r
se l li n nu m b
l fo r a r g e
chan
ne
r e a re l e
a th e r a n g
I n I n di s w i de
. vid e
India p r o
r s w ho
r e ta il e c t s.
of pr o d u
a ft s
h a n dicr
of
 d ir ect to rs
i l a nd is tri b
u

r et a le rs lers
/D
fro m l es a hole
sa
r t h o 2 .W
Apa n e ls ,w
v ide
c ha n p r o
s l s o
sale u t o r sa
s t ri b ic r a ft
n d di h a n d
a e of
r an g
larg e
c t s.
prod
u k e ep
r s can d
s a l e k a n
ho le i n b ul
W o ck
c t s t al
d u f i n
pr o c t t o
ll d ire r
n s e t a i le
ca o r re
u m er
cons
 I nt e r E-Co
ne t h
as e mme
th e p
romi
m er g
ed a
rce
sing sao
for s d istrib ne o
ellin ution f
g th e chan
It is hand n el
e sti m icraf
ated ts p r
on e that o d uc
of th inter t s.
e ma ne t w
distr j or c ill be
ibuti h a nn
on o el fo
th r o f han r t he
ugh dicra
E-Co fts p
mme rodu
r c e. c ts
 SWOT Analysis: Handicrafts Industry

• Large, diversified and potential market.

• There is large product variety and range is
available because of diversified culture. Stre
ngth
s :
• 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.
 • Easy creation and
development of production
a nd centers.
e s
t a g
c e ss
d v an Suc • There is no need for macro-
A
ti c a l … ……
Cri ctors investment.
Fa
• 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.
 n e s s
Weak
ess:tructure aensd.
o f i nfra n faciliti t i on al
k o a
• Lac municati t i n t ern
com s s a bou rket.
a r e ne n d ma en
U n a w n t s a e t w e
• u i re me a t i o nb r i v a te
r eq - i n
ord ies and p
f c o
L a c k o ent bod
• nm ew
gover s. a tion o f n
y e r r m
pla a t e i nf o nt
e q u u r re
d
• Ina hnology. o n o fc
r m at i
tec a te i n f o
d e q u s . p l e in
a
• In rket tren d g pe o
o u n
ma e s t o fy
s s i n ter .
• Le ft industry b o r.
cr a l l ed l a
s k i
L a c k of
•
 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
Rend facility in competing countries.
 Handicrafts Organizations

• All India Handicrafts Board:

• The All India Handicrafts Board was established in 1952 to
suggest various solutions for improvement and
development in Handicraft Industry.
• State and Union Territories:
Every State and Union territories has different department
for the development of Handicrafts Industry. Marketing,
Promotion, Financial Aid to Small Scale Industries, and
other programs are the functions of State level
corporations.
 Handicrafts Organizations
• Central Corporations:
• The Central Cottage
The Handicrafts and Hand looms
Export Corporation of India: It was Industries Corporation
established in 1962.
Pvt. Ltd.:
• The All India Hand loom
Fabrics Marketing Cooperative It is a registered society
Society Ltd.:
This Cooperative Society is that runs Central Cottage
supported and promoted by All Industries Emporium in
India Hand loom Board.
New Delhi, Mumbai,
Kolkata, Chennai to sell
the Handicrafts products.
 Other Organisations………..

• Private Organizations/Promoters
• The Federation of Indian Export Organization
• The Export Inspection Council
• The Export Credit Guarantee Corporation
• The Trade Development Authority of India
• The Indian Institute of Foreign Trade
• The Handloom Export Promotion Council
 Conclusion
• China Is the major competitor for Indian handicraft sector.
• The Indian Handicraft Industry stands a unique place among all
other industries.
• It represents the rich culture, tradition and heritage of India.
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 and it is one of the most important
segment of decentralized sector in India
• It has shown continuous growth at the rate of 15-20% over the
years and contributes major role for export and foreign earnings.
• It is estimated that Handicraft Industry in India is all set to grow
with rapid rate in future and contribute its share towards
economic development handsomely.