Handicrafts Industry In India: SWOT Analysis - Presentation Transcript

1. Handicrafts Industry in India An Integral Part of Indian Economy….. A SWOT

Analysis Resource : www.india-crafts.com By: Priyanshu Shrivastava

2. Strengths of Indian Handicrafts Industry • 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.

3. Critical Success Factors of Indian Handicrafts Industry • Easy creation and

development of production centers. • There is no need for macro-investment.
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. •

4. Weaknesses of Indian Handicrafts Industry • 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. •

5. Opportunities in Indian Handicrafts Industry • 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.

6. Threats for Indian Handicrafts Industry • 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 R&D facility
in competing countries.

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Indian Handicrafts Industry

India is one of the important suppliers of handicrafts to the world market. The
Indian handicrafts industry is highly labour intensive cottage based industry and
decentralized, being spread all over the country in rural and urban areas.
Numerous artisans are engaged in crafts work on part-time basis. The industry
provides employment to over six million artisans (including those in carpet trade),
which include a large number of women and people belonging to the weaker
sections of the society.

In addition to the high potential for employment, the 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 the country. The
export earnings from Indian handicrafts industry for the period 1998-99 amounted
to US$ 1.2 billion.

Although exports of handicrafts appear to be sizeable, India’s share in world

imports is miniscule. It is a sector that is still not completely explored from the
point of view of hidden potential areas. India, a country with 26 states and 18
languages and more than 1500 dialects offers an enormous range of handicrafts
from each of the states. Major centres in Uttar Pradesh are Moradabad also known
as the "Peetalnagari" (City of Brass), Saharanpur for its wooden articles, Ferozabad
for Glass. The North Western state of Rajasthan has to offer the famous Jaipuri
quilts, Bagru and Sanganer printed textiles and wooden and wrought iron furniture
from Jodhpur. The coastal state of Gujarat comes with embroidered articles from
Kutch. Narsapur in Andhra Pradesh is famous for its Lace and Lace goods. But this
is only a small part of the total product range. India offers much more.

Handicrafts are classified into two categories:

1. Articles of everyday use

2. Decorative items

The craftsmen use different media to express their originality. The diversity of the
handicrafts is expressed on textiles, metals – precious and semi-precious, wood,
precious and semi-precious stones, ceramic and glass.
Textile based handicrafts:

Hand printed textiles including block and screen printing, batik, kalamkari (hand
printing by pen) and bandhani (tie and die) are used in products ranging from bed-
covers to sheets, dress material to upholstery and tapestry. The famous
embroidered articles of silk and cotton, often embellished with mirrors, shells,
beads, and metallic pieces are also found in India. Embroidery is done too on
leather, felt and velvet etc. This segment of the industry accounts for almost half a
million strong employment in addition to a large number of designers, block
makers, weavers and packers involved in the trade.

Clay, Metal and Jewellery:

Brass, copper, bronze, bell metal are used for a variety of wares and in a variety of
finishes. Scintillating ornaments are available in a wide range of patterns, styles
and compositions. Made from precious metals, base metals, precious and semi-
precious stones; these ornaments have traditional as well as modern styles.

Woodwork:
Wooden articles in India range from the ornately carved to the absolutely simple.
One can find toys, furniture, decorative articles, etc. bearing the art and
individuality of the craftsman. India is known particularly for its lacquered wood
articles.

Stone Craft:
The intricately carved stoneware made of marble, alabaster or soapstone, etc.,
inlaid with semiprecious stones carry on the heritage of Indian stone crafts.
Glass and Ceramic:
Glass and ceramic products are a fast upcoming segment in the handicrafts from
India. The age-old production process of mouth-blowing the glass instills a
nostalgic feeling. The varied shapes of ceramic and glass in a number of colours,
would appeal to Western aesthetics while retaining the Indian touch.

Craft concentration Areas:

A wide range of handicrafts are produced all over Indian artmetalware / EPNS
ware, wood carvings and other wooden artwares, imitation jewellery, handprinted
textiles, shawls as artwares, embroidered goods, lace and lace goods, toys, dolls,
crafts made of leather, lacquerware, marble crafts etc. Although it is difficult to
limit a specific place for the particular craft, the following places are listed for their
particular crafts.

Artmetalware : Moradabad, Sambhal, Aligarh, Jodhpur,

Jaipur, Delhi, Rewari, Thanjavur, Madras,
Mandap, Beedar, Kerala & Jagadhari,
Jaselmer

Wooden Artwares : Saharanpur, Nagina, Hoshiarpor, Srinagar,

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

Handprinted Textiles : Amroha, Jodhpur, Jaipur, Farrukhabad,

& Scarves Sagru & Sanganer

Embroidered goods : Kutch (Gujarat), Jaisaimer, Baroda,

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

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

Crafts

Papier Mache Crafts : Kashmir, Jaipur

Terracotta : Agra, Madras, Baster, Jodhpur

Zari & Zari Goods : Rajasthan, Madras, Baster

Imitation Jewellery: : Delhi, Moradabad, Sambhal, Jaipur,

Kohima (Tribal)

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

Goods

Selected crafts pockets for achieving export goal:

Although each crafts pockets has its particular problems, a few selected craft
pockets are identified based on their past performance for immediate remedial
attention to stimulate a quantum in exports of handicrafts in the coming years.

Moradabad(UP) : For Artmetalwares and imitation jewellery

Saharanpur (UP) : For Wooden handicrafts & Wrought iron

handicrafts

Jodhpur (Raj.) : For Wooden, Wrought Iron and Sea Shell

handicrafts

Narsapur (A.P.) : For Lace and Lace goods

COUNTRY-WISE EXPORTS OF HANDICRAFTS

The major buyers for handicrafts (other than carpets) are as under:

Art Metalwares : U.S.A., Germany, U.K. & Italy

Wood Wares : U.S.A., U.K., Germany & France

Hand Printed & : U.S.A., U.K. , Germany & Canada

Textiles & Scarves
Embroidered & : U.S.A., Saudi Arabia, U.K., Germany
Crochetted Goods

Shawls as Artwares : Saudi Arabia, U.S.A. Japan & U.K

Zari & Zari goods : U.K. U.S.A., Japan & Saudi Arabia

Imitation Jewellery : U.S.A., U.K., Saudi Arabia & Germany

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

Handicrafts
Value Adding Chain in Handicrafts

Identification of market opportunities

Prototype design and development / adaption and refinement

Test marketing

Upgrading equipping facilities

Securing inputs

Entrepreneurial hiring, training, managing

 Production, quality control and packaging

Costing and pricing

Physical distribution

Export market development

In the changing world scenario, craft products exported to various countries form a
part of lifestyle products in international market. The impact is due to the
changing consumer taste and trends. In view of this it is high time that the Indian
handicraft industry went into the details of changing designs, patterns, product
development, requisite change in production facilities for a variety of materials,
production techniques, related expertise to achieve a leadership position in the fast
growing competitiveness with other countries.

The 6 million craft persons who are the backbone of Indian Handicraft Industry as
provided with inherent skill, technique, traditional craftsmanship but that is quite
sufficient for primary platform. However, in changing world market these craft
persons need an institutional support, at their places i.e. craft pockets for value
addition and for the edge with other competitors like China, Korea, Thailand etc.
The German handicrafts and Giftware Market

With over 82 million inhabitants, Germany is the largest market for giftware and
handicrafts items in Europe. A member of and situated within the European
Union, Germany is supplied with giftware and handicrafts from Germany as well
as the surrounding European countries such as France, Italy, Switzerland and the
United Kingdom and from all other parts of the world: Russia, Latin America,
Africa and Asia.

The size of the total German giftware and handicrafts market varies according to
the definition of giftware and handicrafts. With its present size around DM 29.5
billion it corresponds to a broad definition of giftware and handicrafts that includes
the following items: home furnishings, artmetalware, table accessories, Christmas
decoration, woodware and furniture, imitation jewellers, artificial flowers/plants,
scents/cosmetics, sweets, toys/computer games, books, discs/videos,
watches/jewellery, certain apparel/textile items and others. The German giftware
and handicrafts market grew from DM 29.1 billion in 1998 to DM 29.5 billion in
1999, but experienced a slight decline in the first quarter of 2000.

The substantial supply of giftware and handicrafts has transformed the German
giftware and handicrafts market into a fiercely price-competitive market place.
Nevertheless, innovative and new to market giftware and handicrafts items place
still have good market prospects. It is essential for the German giftware and
handicrafts marketers to find new products to stay competitive. Although German
consumers may be willing to pay a high price for exclusive items they are very
price conscious and want value for money. Among traditional gift items, candles,
festive items, including Christmas decoration, exclusive gift boxes and gift-wrap,
ribbons, nostalgic calendars and all types of scented items have best prospects. The
German market shows a strong demand for low-priced candles. Thus imports from
Poland and China have increased substantially. The average growth for the overall
giftware and handicrafts is estimated at 1-2 percent over 1999-2000.

Competitive Situation

German giftware and handicrafts consumption is growing more or less in line with
the relatively slow growth rate of income during the last years. Thus, expectations
for additional growth are not very high. Annual growth rates of between 1.5-2
percent are forecast for the next few years for the overall giftware and handicrafts
market. In general the market shows good business opportunities if prices and
quality are competitive and delivery schedules are fulfilled.

Apart from its own producers, Germany is supplied by giftware and handicrafts
from nearly all of the European countries. German firms often import specific
product groups from a particular country. Major suppliers of pottery are, for
example, Spain and Portugal; fine exclusive stationery comes from Italy, France
and Switzerland; candles from Poland, China and Portugal; dried flowers from the
Netherlands etc.
Fierce price competition in Germany is intensified by the increasing quantity of
Chinese and Asian made products on the market. For India this situation coupled
with the relatively strong Indian rupee which means that firms proving to be most
successful in the recent past have offered niche market giftware and handicrafts,
i.e., exclusive to Indian handicrafts items or new-to-market products.

A few well-established German manufacturers of giftware and handicrafts items

are:

Koziol GmbH, Erbach Krebs-Glas-Lauscha GmbH,

Ernstthal

Barti GmbH, Garching Margarete Steiff GmbH, Giengen

Duni GmbH & Co. KG, Bramsche WMF AG, Geislingen

Rastal, Hoehr-Grenzhausen Rosenthal AG, Seib

Fartak, Lahr W. Goebel Porzellanfabrik,

Roedental

GIES Kerzen, Glinde Walther-Glas GmbH, Bad Driburg

Jet Papier GmbH, Bernau

Sales volume of specific sub-sectors (estimates):

Some estimates of individual giftware and handicrafts subsector volume sales are
provided as follows:

Seasonal: Market insiders estimate the total volume of the seasonal items market,
including Christmas, Easter, Valentines Day and the German counterpart of
Thanksgiving, at DM 7.7 billion. In 1997, about DM 3 billion were spent alone for
Christmas decoration, Christmas floristic items and Christmas trees only.
Christmas items are usually imported from China, Taiwan, Thailand, Philippines
and India. However, Indian Christmas decorations as candle stands or Christmas
tree hangings and soft toys find a ready market in Germany if they are moderately
priced.

Hobby and art supplies: The present market volume of hobby and art supplies in
Germany is estimated at about DM 3 billion, while the total European market
should amount to DM 12 billion. Insiders believe that this specific market segment
still offers some potential for new products. A recent survey shows that apart from
their school days, most of the Germans who do regular DIY or hobby work are
between 60 and 69 years (10.8 percent of the German adults) old. With the fast
ageing of the German population a stronger demand for hobby and crafts is likely.

Incentive items: From 1992 to 1998, the total German market for incentives
increased from nearly DM 3 billion to DM 6 billion.

Toys: In 1998, annual sales of licensing products amounted to about US$ 4.2
billion in Germany. Also in 1998, the toys market volume expanded to DM 6
billion. Total annual sales for computer games and learning games alone, increased
to DM 2 billion in 1998 compared to the pre-year level of DM 1.7 billion.

Market Access

EU member states and Asian countries, China and India in particular, are major
suppliers of giftware and handicrafts to the German market. Indian firms making a
first approach to the German market are advised to have comprehensive product
literature and data sheets professionally translated into German. Although English
is widely understood, a well-prepared translation gives an important marketing
edge, particularly in the initial presentation. Indian firms should preferably appoint
an agent or distributor who can maintain a stock sufficient to answer short-notice
orders.

Customs Duties

Customs duties vary according to material and product. Though duties are high for
a few items, i.e., dried flowers, potpourri (16.7-20 percent), T-shirts (12.0-13.2)
and hand- woven, woollen blankets (13.4 percent), the majority of customs duty
rates falls in the range of 5-8 percent. For example:

Customs Duties (in percent)

Ceramics : 4.1 - 7.5

Toys : 5.6 - 6.3

Stationery : 8.4

Plush animals : 6.0

Quilts/blankets : 7.5

Candles : 2.8

Silver jewellery : 2.5

In addition, there is a 16 percent sales tax, which is eventually passed on to the

consumer in form of the value-added tax (VAT). But the VAT has to be paid when
entering the German market by the exporter/German importer.

Items that originate from certain animal species, i.e., snakeskin or hides of some
animal, it must be ensured that the export of these products complies with the
Convention on Endangered Species (CITES). Regarding sample orders, exporters
should be aware that one sample with a maximum value of DM 50 each or, five
identical samples of one product group not exceeding a total value of DM 50, are
usually customs free.

Product Standards

In view of the wide field of products that could be considered as giftware and
handicrafts, it is difficult to name standards. Compliance with EU standards and
regulations is strongly suggested. There are, however, only few product groups in
the giftware and handicrafts field that have to follow standards. It is essential that
CE-labelling be observed where required. The CE-mark (including conformity
statement and technical documentation) is mainly required for toys (88/378/EEC
standard). While the quality regulations for candles are obligatory assuring a
certain level of quality, the toy regulation and the electronic standards have to be
observed because of safety considerations:

Major Distribution Channels

In Germany, giftware and handicrafts is distributed through five major channels:

Wholesalers
Importers/distributors
Commission agents/sales representatives
Department stores
Mail-order
Internet sales
Tele-shopping

The individual channels are described in detail in the following.

Wholesalers:
Besides offering wide range of goods to retailers for direct sales, this channel also
supplies large quantities of individual articles. They are very particular in
maintaining consistency in the kind of products and their quality. One of the
distinguishing features of wholesalers is to provide distribution and storage
facilities. Specialised wholesalers deal in sales to retailers as well as to final
consumers. They maintain high quality standards and but have a narrower and in-
depth range of arts and crafts.

Importers/distributors:
Most Indian giftware and handicrafts companies use importers/distributors to
market and sell their giftware and handicrafts lines. They buy and sell on their
own account. Thus, the companies take advantage of the distributor's expertise, his
sales force and his existing distribution channels. Distributors call on giftware and
handicrafts retailers, purchasing groups and supermarkets. The distributors' mark-
up varies depending on the giftware and handicrafts item, but at least 50 percent.
While the mark-ups vary according to the distributor; they usually also depend on
the exclusivity of a product and on its competitiveness in the overall giftware and
handicrafts market.

Germany hosts more than 45,000 giftware and handicrafts retailers. Several
retailers import directly from the United States and sell to the German customer.
Usually these are small companies looking for items new to the market and
handling small orders only.

Commission agents:
Commission agents provide Indian companies with direct access to the German
market and direct control. Independent commercial agents are normally working
on a 15 percent commission and operate on a regional basis. They concentrate on
specialist retailers, purchasing groups and department stores. Commission agent
contracts are based on stringent EU and German regulations. An Indian firm
wishing to appoint an agent should make sure that such standard contracts meet its
expectations. In order to facilitate market entry efforts by the agents their initial
commission is often a few percent higher than the "usual" commission. These
additional payments are to reimburse the agent for substantial advertising and any
special efforts facilitating the new product's market entry.

Department Stores:
Indian companies interested in establishing business contacts with major
department stores, mail-order houses and retailers may also choose the direct
approach. Department stores in particular, prefer to deal directly with
manufacturers. Their buyers are very specialized and only handle a limited range
of products. At some occasions department stores also buy through independent
commercial agents. Quite often they have their own buyers as well as a few agents
that usually work with them and who know their assortments. If a department
store decides to import a particular giftware and handicrafts item, it places bulk
rather than small orders.

Mail Order:
On an average, each German consumer buys products totaling to DM 500 each
year from mail-order houses. There are about 200 mail order companies in
Germany. In Europe, Germany is the largest mail order market, followed by Great
Britain and France. The total European market volume for mail order products is
estimated at approximately DM 90 billion. Of the 20 major mail order companies
in Europe, 12 have their headquarters located in Germany. Among them are the
world's largest mail order companies: Otto Versand in Hamburg and Quelle
Schickedanz AG & Co. in Fuerth. In addition, several German mail order
companies operate in other European countries, as well.
Internet Sales:
Germany will become market leader among the EU countries with regard to sales
over the Internet by the year 2000. It is anticipated that by then German electronic
sales, which are estimated to reach a volume of DM 500 billion worldwide in
2000, become second in the worldwide ranking after the United States and before
Japan. A typical German Internet user and a major German mail-order publication
is between 20-39 years old, is highly educated and earns more money than the
average German consumer. This age group consists of about 4.5 million Germans.
Seventy percent of these consumers are male. Already today, the Internet is a
major sales channel for German mail-order houses.

Teleshopping:

QVC and HOT are the two tele-shopping channels in Germany. They operate all
over Germany and offer various types of giftware and handicrafts; jewellery,
fashion, health, beauty; household consumer goods; collectibles and home
accessories.

SWOT Analysis of the Indian handicrafts industry

Strengths
 • Abundant and cheap labour
hence can compete on price
• Low capital investment and
high ratio of value addition
• Aesthetic and functional
qualities
• Wrapped in mist of antiquity
• Hand made and hence has
few competitors
• Variety of products which
Opportunities are unique Threats
• Exporters willing to handle
small orders
• Rising appreciation for Decline in India’s share
• Increasing emphasis on
handicrafts by consumers in
product development and due to:
the developed countries
design upgradation
• Widespread novelty seeking
• Large discretionary income at • Better quality products
disposal of consumer from produced by
developed countries competitors from
• Growth in search made by Europe, South Africa,
retail chains in major South Asia, etc.
importing countries for • Better terms of trade by
suitable products and reliable competing countries
suppliers. Opportune for • Consistent quality and
agencies to promote increasing focus on
marketing activities R&D by competing
• Use of e-commerce in direct countries
marketing • Better packaging
• Stricter international
Weaknesses
standards

• Inconsistent quality
• Inadequate market study and
marketing strategy
• Lack of adequate
infrastructure and
communication facilities
• Capacity to handle limited
orders
• Untimely delivery schedule
• Unawareness of
international standards by
many players in the market

REG.NO-10810337

REG.NO-10810337
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. The following
definition strives
to cover diversity and complexity of Handicraft Industry.
Defining Handicrafts:
Definition According to United Nations Educational, Scientific and Cultural
Organization/Information Technology Community (UNESCO/ITC) International
Symposiumon “Crafts and the International Market: Trade and Customs
Codification”,
Manila, Philippines, October 1997:
Handicrafts can be defined as products which are produced either completely by
hand or with
the help of tools. Mechanical tools may be used as long as the direct manual
contribution of
the artisan remains the most substantial component of the finished product.
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.
Definition 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.
The Importance of Handicrafts:
The Cultural Importance:
Handicrafts play very important role in representing the culture and traditions of
any
country or region. Handicrafts are a substantial medium to preserve of rich
traditional
art, heritage and culture, traditional skills and talents which are associated with
people’s lifestyle and history.
The Economic Importance:
Handicrafts are hugely important in terms of economic development. They
provide
ample opportunities for 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.
During recent years, the importance of handicrafts has been surged due to their
cultural and
financial values. The small scale industries - including handicrafts can play a
major role in
the development of the economy of both developed and the developing
countries equally. The
90-95% of the total industrial products of the world are produced in small
workshops run by
less than 100 people. For instance, Japan, which is at the peak of the economic
development,
has considered 84% of the its industries as small and medium scale industries.
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. These countries are
focusing on the
development of handicraft industry, in order to strengthen the economy.
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.
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.
The Handicraft industry is a major source of income for rural communities and
provides
ample employment opportunities to over 63.81 lakh artisans, which include a
large number of
women and people belonging to the weaker sections of the society.
Though Indian Handicraft industry is considered a cottage industry, but it has
evolved as one
of the major revenue generator over the years. There has been consistent
growth of 20% over
few years and the industry has evolved as one of the major contributor for
export and foreign
revenue generation.
The exports of Handicraft Goods during 2005-06 were Rs. 15,616 crores and
upto the
January 2007 it was Rs. 16,117.38 crores. For the growth and development of
the sector
Indian Govt. has launched following schemes:
Baba Sahab Ambedkar Hastshilp Yojna
Design and Technical Upgradation Scheme
Marketing & Support Services Scheme
Export Promotion Scheme
 Bima Yojna for Handicraft Artisans
Credit Guarantee Scheme
Gandhi Shilp Bazaar Scheme
There is huge demand of Indian Handicrafts Products in domestic & international
market. It
is estimated that Handicraft Industry in India would grow with rapid rate in
future and
contributes its share towards economic development
Though Indian Handicraft industry is considered a cottage industry, but it has
evolved as one
of the major revenue generator over the years. 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.
There is huge demand for the Indian Handicraft products in both national and
international
market. To match the demand and supply with quality, there is need to have
greater
technological support and innovativeness with the uniqueness in industry.
India Handicraft Industry
The concept of Indian Handicrafts has emerged from one of the oldest
civilizations called
the Harrappan Civilization and the Indus Valley Civilization. The exclusive items
carved
by the India Handicraft Industry comprise of vast cultural and ethnic
diversity that has
imbibed an array of unique themes, techniques, and crafts. India Handicraft
Industry has
been globally popularized as the rich and cultural heritage of India for its unique
appeal.
Handicrafts of India use brass, metal, wood, stone, and beads to carve its
products ranging
from masterpieces to plain household items.
Paintings, furniture, sculptures, artificial jewelry, animal figures, figurines of
deities and
idols, baskets, and many more items have been complimented as the pride of
India.
Besides, trading in the local markets, Indian handicrafts are also exported
across the globe.
Each work of art reflects the adroitness and emotions of the craftsmen which
have made
the work more close to heart apart from being an exclusive show piece.
To know more about various types of India Handicraft Industry please browse
the
following links:
ı India Spinning Industry ı India Weaving Industry
ı India Pottery Industry ı India Metalworks Industry
ı India Woodwork Industry
India Spinning Industry
India Spinning Industry has gone from strength to strength since a very long
time now
as it was the hub of cotton manufacturing. Cotton is not only consumed to the
highest
extent in India but it has also become one of the most profitable textiles in the
export
industry.
Spinning in India can be classified into 2 categories: medium and long staple.
But there
was a shortfall in the ‘extra-long’ category that continued for many years. There
was a
massive downfall in the cotton spinning in India during 2004-2005. The
production rate of
cotton was about 4 lakh bales that was less by 5 lakh bales from the required
rate which
was 9 lakh bales. Mr. P. D. Patodia, the Chairman of the Standing Committee on
Cotton,
CITI-CDRA said that the manufacturing of cotton will rise to 11-12 lakh bales in
2010.
The present downfall in the cotton production has witnessed a 50% increase in
the price of
Indian varieties of ELS, which is detrimental for the spinning industry in India.
Spinning
mills require domestic accessibility of ELS cotton in increased quantity and of
better fiber
qualities.
To survive this downfall in the cotton trade which is a highly profitable textile in
the India
Spinning Industry, CITI-CDRA is conducting a conference with various research
organizations such as CICR (Nagpur), JNKVV (Khandwa), UAS (Dharwad), and
Regional Textile Mills' Association in R&D activities. It conducted a discussion
pertaining to the development of new varieties of seeds and adopting the
advanced
procedure of cultivation which will add to the profit in the cotton textile sector of
the
spinning industry. The most important and efficient step towards the resurgence
of cotton
manufacturing would be to develop the ELS varieties with lesser duration crops
and yield
to cost-effectiveness and consistency in cultivation. This will not only motivate
the
farmers but will also make them stick to the desired sector of cotton crop.
The yarn spinning industry covers almost 25 percent of the total industrial
production of
one of the world's 10 largest economies. Trends are reviewed every year in
accordance
with the need and fashion. An elaborate and detailed assessment is made on
various
sectors of the yarn spinning such as, production, consumption, and materials.
The
legislative and the political consequences are also reviewed at the same time. In
addition
to it, other areas that are being reviewed in the yarn spinning sector are
exports, imports,
prices, advertising, and sales promotion patterns.
Some of the popular companies engaged in the India Spinning Industry are
listed below:
Bhilwara Spinners Ltd. (LNG Group) – polyester, viscose, wool-blended fabrics
and high-end products like lycra and linen. BSL Suitings and Mayur Suitings are
the two brands under Bhilwara Spinners Ltd.
Nitin Spinners Ltd. - manufactures single and multi-fold yarns in the range
from
Ne 4 to Ne 40 appropriate for various applications such as Knitted Fabrics,
Woven
Fabrics, Terry Towels, Denims, Furnishing Fabrics, carpets and other Industrial
Fabrics.
Sangam (India) Ltd. (Sangam Group of Companies) – Largest producer of dyed
yarn in India with a capacity of 64032 spindles in one location.
Ajay Group of Industries – Manufacturer and seller of polyester viscose,
polyester
woolen and uniform fabrics.
The Spinning Industry in India is on set to hit the global market with other
fabrics as well
like the cotton textiles with its enthusiasm and consistency in work. It has
already reached
a phenomenal status in India by beating the obstacles that caused a downfall
since past
few years and is now on its way to cover a wider area in the spinning sector.
India Weaving Industry
India Weaving Industry is one of the most significant industries in Indian
economy. In
2004, the Textile government officials conducted a program for the
advancement of the
suburbanized powerloom sector.
One of the steps taken for it is the alteration of the main instrument called TUFS
used in the
weaving sector of India. The second hand machines used for weaving are likely
to be replaced
with more modernized ones. This will enable the beneficiary to have its take on
the 12 percent
subsidy in combination with the credit. This modification is implemented by the
Powerloom
Service Centers that are being modernized to facilitate this alteration. A group
of 16 leading
powerloom clusters have been given the responsibility to work together for the
modernization
of Indian powerloom sector. Besides, the center had also decided upon the
setting up of hitech
weaving mills and unified textile mills in India for the small scale weavers.
Weaving is an ancient handicraft and has several categories, some of which are
as follows:
Silk weaving
Cotton fabric weaving
Wool weaving
Shawl weaving
Carpet weaving
Weaving in India has been setting the trend for the past hundreds of years.
Before it was hand
weaving and now various machineries have been implemented for a quicker and
more
advanced production of textiles. The North-eastern part of India is famous for
weaving of
baskets and mats. These are designed in various styles. Border weaving in
baskets is a
specialized style which is again classifies under three commonly used styles,
namely, tree
strand warp border, simple wrapped border and fastened twine. Functional
baskets are also
weaved largely in the Southern part of India. 'Kohari' basket is one such
example which is
weaved to provide the facility of water drainage while washing rice or fish in the
basket.
Manipur, a state in India weaves all kinds of baskets. Bengal also weaves a wide
variety of
baskets in different styles. Mat weaving is also popularly practiced in Bengal.
Mat weaving a
popular Indian handicraft in Pondicherry, a state in India. Mat weaving follows
several
designs such as horizontal and vertical stripes and also floral ones. Sugar cane
and bamboo
are used as materials for weaving of mats. The traditional weaving art is still
followed by
many states in India such as Himachal Pradesh and Meghalaya.
Shawl weaving is one of the most eminent handicrafts that is enormously
practiced in India
Weaving Industry and are not only sold all over India but also exported across
the globe. Few
variations in shawl weaving are as follows:
Kashmiri Shawls
Pashmina
Shahtoosh
Jamawar
 Kullu Shawls
Dhabla
Carpet weaving industry is one of the most leading export oriented handicraft
industry in
India. There is a great demand for the expensive silk carpets from Kashmir in
the traditional
households in India. Woolen and non-woolen carpets are also highly adored in
various homes
in India.
These are some of the popular weaving mills in India:
Gurupal Silk Mills
Naik Weaving Mill
Nilesh Silk Mills
Potabatti Weaving Mill
Rajasthan Spinning and Weaving Mills Ltd.
Sanjay Weaving Mills
Santigo Textile Mills
Someshwar Industries
India Weaving Industry is expected to do better with the setting up of automatic
air-jet or
water-jet looms which are of vintage kind and have a life span of 10 to 15 years.
A series of
progressive actions also are to be implemented for the betterment of the
weaving pattern in
India soon.
Indian Pottery Industry
Indian Pottery Industry has its origins in the earliest era of civilization.
Tradition of pottery
in India is an age-old handicraft which was claimed to be the expression of
human emotions
at the beginning.
Indian Pottery Industry speaks volumes about the culture, traditions,
architecture, and in-built
talent of Indian artisans who have manufactured innumerable pottery pieces
across the length
and breath of the country. This is one of the most sensual arts in the Indian
handicraft
industry.
Indian Pottery Industry came into existence with the Indus Valley Civilization and
the
artwork has been continuing in various areas such as pottery, earthenware, and
porcelain for
ages. Pottery and earthenware are utilitarian and also decorative while porcelain
and studio
pottery belong to the sphere of art. Pottery making are both handmade and
wheel-made that is
practiced all over India. Ever since the Harappan Civilization, pottery making in
India has
been a significant craft and the potters were always esteemed at that time.
They were the best
masters of their trade. Seals and grains and water are always supplied in lumps
so as to
facilitate the efficient use of it while making pottery.
Potteries in India are called as the 'lyric of handicrafts' because of its lyrical and
universal
charm. It is an amalgamation of concept, design and execution. The making of
Brahma is one
of the most esteemed legends in Indian Pottery Industry.
The potteries are of various kinds which are listed below:
The common earthenware
Kullar (cup-like container)
Lamps for Diwali
Toys for Dussehera
Pots for seedling at Sankranti
ainted pots for marriages
_ Karigari Pottery
Ashtrays
Flower vases
Tea sets
Paper weights
Decorative animal figures
Blue Pottery is one of the most famous of its kinds in the Indian Pottery
Industry. Delhi is
famous for Blue Pottery in India. Such a distinctive name is entitled to the
pottery so as to
highlight its eye-catching outlook and differentiate it from other potteries. The
specialty in
Blue Pottery is that, a Persian blue dye is used to color the clay from which the
potteries are
made. This is the exclusive attribute of Blue Potteries it is also equally famous in
Jaipur, a
state in India. Some of these potteries are transparent and are adorned with
animal and bird
themes. The Jaipur Blue Potteries are made of Egyptian paste and are kept at a
very low
temperature after it is made.
Religion has also made its presence in the Indian Pottery Industry with the
making potteries
of various deities and idols of worship. These are categorized under 3 heads:
Figurines of Divinities
Ceremonial Pottery
Votive Offerings
Today, in the villages of India, around 15 lakhs of potters are trading their talent
and about
95% of them are involved in traditional red or local clay pottery work. With this
innovativeness and hard work combined with enthusiasm, Indian Pottery
Industry will keep
on ruling not only its own country but also the globe.
Indian Metalworks Industry
Metal work is an age-old tradition in India. Indian Metalworks Industry has
been reigning
successfully since last 5000 years from now. The beautiful image of the dancing
girl from
Mohanjodaro is one of the most outstanding works of the Indian Metalworks
Industry.
Metal works in India had used a wide array of metals, such as, iron, copper,
silver, and alloys
like bronze, bell metal, white metal, and etc to manufacture items like pots, pan,
utensils,
photo frames, figurines of deities, mythological characters and animals.
Indian Metalworks Industry has reached the level of excellence in craftsmanship
with its
exclusive works. One of such example is the iron pillar at Mehrauli (Delhi) which
belongs to
the Mauryan. The craftsmen during Chola period mastered at bronze sculptures.
Traditional vessels of iron and brass are the specialty of Ladakh in Kashmir.
Kashmir is also
well-known for other metal works, especially the richly graven traditional
household items
such as, bowls, samovars, plates and trays. In 'Naqasi', epicurean floral and
calligraphic
designs are embossed on copper and silver pieces. Figurines of deities and
household utensils
are some popular metal works in Banaras.
< A nomadic tribe called Godiya Lohar in Rajasthan crafts iron utensils for
regular use and
those who mastered in craftsmanship makes idols, lamps, and curios. Jaipur
prides its
craftsmanship in brass engraving and lacquering. Items carved out of these
metals are photo
frames, bowls, plates, boxes, and etc. The art of Koftagari or damascening work
is is
practiced at Alwar. Other states that bears fame for beautiful and ethnic metal
works are
Madhya Pradesh, Andhra Pradesh, Orissa and Tamil Nadu.
Indian Metalworks Industry is growing at leaps and bounds in the steel
manufacturing with an
installation capacity of 36.12 million tonnes. Ore miners is one of the most well-
established
sector in this industry. Few companies that are engaged in iron mining are
National Mineral
Development Corporation, Kudremukh Iron Ore Co., and Essel Mining &
Industries Ltd.
India is also quite well-known for manufacturing coal based sponge iron. It has
occupied 15
percent of the global output and Jindal Steel & Power Ltd. is the largest producer
of the same
in India with an installation capacity of 650,000 TPA.
Flat metal products are highly manufactured by SAIL, Tata Steel, Ispat
Industries, Jindal
Group of Industries, and Uttam Steel and Bhushan Steel.
Indian Metalworks Industry has acquired a commendable status not only in India
but also in
foreign states by selling its unique products in the local as well as in the global
market.
India Woodwork Industry
India Woodwork Industry is one of the fastest growing industries in India's
economy.
India possesses around 100,000 registered woodware units and more than
200,000 artisans
along with countless other woodworking related units in the sector. Wood has
always been
a major part of Indian handicrafts and various beautiful things are crafted out of
it. India
takes pride in manufacturing exquisite and handsome wooden handicrafts in
diverse
motifs.
The wooden handicraft of India is draped with a vast cultural and ethnic
diversity which is
applied to a range of themes, techniques and crafts. These wooden handicrafts
are unique
in their own style and are claimed to be an absolute personification of the Indian
heritage.
India Woodwork Industry has not only specialized in serving architectural
purpose but
also manufactures furniture both in traditional as well as ultramodern style.
In the rural areas of India, furniture and other household utensils are carved out
of wood in
different shapes and styles. These simple objects are so uniquely blend that
they in no way
look like daily use stuffs. Animal figures are also an excellent example of India's
ethnic
woodwork. These wide ranging exclusive styles adopted by the India woodwork
industry
to carve out various stupefying objects are prepared in different parts of India.
Some of the
most well-known states of India involved in woodwork are as follows:
Gujarat - Famous for woodwork in carved chests, almirahs, and wooden
swings.
The wooden swings vary from plain Hewn wood to lavishly embellished ones.
There is also a tradition of embedding indigenously made gold, silver, and
bronze
hues on wood in a place called Sankheda village in Gujarat. Surat, another place
in
Gujarat, is well-known for its marquetry-work which is called as 'Sadeli' by local
people.
Kashmir- Famous for its exclusive Kashmir houseboat made out of a specially
mollified wood that does not soak in water. Also, the houses in Kashmir are
made
of wood with latticework windows and geometrically patterned ceilings.
Hoshiarpur (Punjab) - Gained immense popularity for carving inlaying ivory
which is now replaced with plastic to cut down on the cost. Wooden furniture,
trays, and mirror frames are usually crafted using intricate designs that were
claimed to be the royal patronage ages back.
Saharanpur (U.P) - The leading place for commercial purposes. Sheesham and
Teak are the chief woods used for manufacturing traditional as well as
contemporary designed products-screens, cigarette boxes, tables, trivets,
bookends,
and so on. Of late, Saharanpur is dealing with wood seasoning only.
Kerala - Specializes in arena handicrafts that along with representing their
customs
and beliefs also portray their spiritual values and emotions.
Other areas - West Bengal, Bihar, Orissa and Andhra Pradesh are also
engaged in
carving out various uniquely designed items out of wood.
India Woodwork Industry uses various kinds of woods, for example, Walnut,
Sandalwood,
Teak, Sheesham, Deodar, Ebony, Redwood, Rosewood, Red, Cedar, Sal, and
many more.
Recently, embedding of brass wires (Tarkashi) has gained lot of attention
worldwide.
India has set up over 3,000 woodworking units and the number is increasing
with the
passage of time.

Handicraft Exports
Handicraft Industry has evolved as one of the major contributors for Export and
foreign
earnings:-
Exports of handicrafts including hand knitted carpets during 2005-06 were
Rs.13412.92 Crore.
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.
(Rs. in Crores) US $ Million

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.
Trade Policy:
Handicraft products fall under the ITC (HS) code 97.
Paintings, drawings and paintings, domestic articles of wood etc. which come
under
9701
Original engravings falling under 9702
Original sculptures categorized under 9703
Products under the code 9704 are freely importable.
Imports of items in 9705 are restricted.
Characteristics of Indian Handicrafts for exports; as defined by Govt. of
India are:
They are quota free and neutral to fiber content or composition, barring 100%
silk.
They include Garments, Made-up and clothing accessories.
Are produced in cottage industries.
Should not have zippers.
Must be ornamented using any one or more of the following Indian folk styles.
Hand painting, Hand printing, Batik, Tie and Dye, Kalamkari.
Hand embroidery, Crocheting.
Appliqué work of sequins, wooden or glass beads, shells, mirror, ornamental
motifs of
textiles materials.
Extra wrap of welt ornamentation of silk, art silk or zari threads.
Should conform to shape and styles of each item as defined in the agreed list
of
different countries.
Should satisfy the dimensional aspects.
Tariff-non-tariff Policy:
Except for 9704, all the items under 97 attract a total import duty of 35.2 per
cent. This
includes a basic duty of 35 per cent and a special additional duty of four per
cent. Items under
9704 do not attract any import duty.
Export prospects of handicrafts
from India
handicrafts sector occupies animportant place in the Indian economy as it
contributes
significantly to employment generation and export earnings. The economic
importance of
the sector also lies in its high employment potential, low capital investment,
high value
addition and continuously increasing demand both in the domestic and overseas
markets. The
sector provides employment to more than 60 lakh craft persons mostly from
rural areas.
industry is highly labour intensive and decentralized, being spread all over the
country in
rural and urban areas. Details of concentration of major handicrafts at different
places in
India appear at Annexure I. The Office of Development \Commissioner
(Handicrafts) under
the Ministry of Textiles, Government of India is the nodal Government
Department at the
national level for the development of handicraft sector in the country. Through
its various
agencies like Export Promotion Councils for Handicrafts, State Handicrafts
Development
Corporations, Apex Societies and (17.28%), UK (13.69%), Japan (7.85%), and
Sweden
(4.38%). On the other hand, the countries showing a significant growth during
the period
included: Korea Republic (54.74%), Canada (37.34%), France (25.41%), and
Netherlands
(25.03%)., it has been supplementing the efforts of the state governments by
implementing
various developmental schemes of the Government of India. The handicrafts
sector has been
identified by the Ministry of Commerce and Industry, Government of India, as a
thrust area
for export promotion. The Export Promotion Council for Handicrafts (EPCH)
functioning
under the aegis of Office of Development Commissioner (Handicrafts) and
governed by
the policies of the Ministry of Textiles, Government of India, since its inception in
1986, has
been playing an important role to promote exports of Indian handicrafts. To
boost exports of
handicrafts, the Council undertakes various activities like participation in
national and
international trade fairs, arranging buyer-seller meets, organizing workshops,
seminars and
training programmes. The various handicrafts promoted by the Council inter alia
include
artmetalwares/EPNS wares, hand printed textile and scarves, wood carvings and
other
artwares, embroidered and crocheted goods, zari and zari goods,
shawls as artware, imitation jewellery and several other handicrafts, namely
artistic leather
goods, papier machie products, lace and lace goods, toys, dolls, lacquerware,
marble crafts,
etc. For knowing latest developments in the exports of handicrafts and also
participation in
trade fairs both in India and abroad, access its website: www.epch.com.During
the year 2004-
05, the Council undertook various export promotion activities. Some of the
important ones
included: (i) Participation in many trade fairs abroad, viz. FAME trade fair at
Manila from
19-22 April 2004; Impex- Gift & Homeware International at Melbourne (Australia)
from
18-20 May 2004; Gifts & Premium Show held at Hong Kong from 28 April to May
1
(i) World Imports. World imports in 2003, as may be seen from Table 1,
registered a decline of 8.94 per cent when the same reached a level of
US$10,046
million as against US$11,032.7 million in the previous year. USA continues to be
the
largest importing country. However, during the period, its imports registered a
decline of 15.92 per cent when the same nosedived to US$4,352.8 million from
US$5,172.2 million. The countries registering a declining trend during the period
included: Italy (66.33%), Germany
WORLD TOTAL 11,367.0 11,032.7 10,046.0 (-)8.94
Source: United Nations, 2003 International Trade Statistics Yearbook, Volume II,
Trade by Commodity, New York, 2004.
Source: Office of the Development Commissioner (Handicrafts), Ministry of
Textiles, Government of India, New Delhi.
Category wise India’s exports of handicrafts to major markets in 2003-04 and 2004-
05 and their exports in select markets during this period appear at Annexures II and
Export Promotion Councils
1) The All India Handicrafts Board : (West Block VII, R.K. Puram, New Delhi-
110022).
This board acts as a Commodity Board for handicrafts and has an Export Section
with a
Deputy Director (Exports) in charge. The Board collects and disseminates
information,
arranges exhibitions, sponsers sales and study teams, and invites foreign
buyers. The regional
offices of the Board handle registration and process requests for any specific
export
promotion measures.
2) The Gem and Jewellery Export Promotion Council : (D-15, Commerce
Centre, 4th
Floor, Tardeo Road, Bombay- 400001) The council aims at providing facilities
and incentives
regarding the exports of pearls, precious and semiprecious stones, diamonds
and sythetic
stones; to assist in improving and modernising of the jewellery craft of the
country.
3)The Handloom Export Promotion Council : (123, Mount Road, Madras-
600006) It
superintends the export promotion of INdian Handlooms in the country.
4) The Handicrafts and Handlooms Export Corporation of India:(Jawahar
Vyapar
Bhavan, Anex-I, Tolstoy Marg, New Delhi 110001). A government of India
undertaking, it
supplements the export efforts of the private sector, besidesexporting directly.
It undertakes
varoius exort promotional and developmental measures such as publicity and
Indian
participation in foreign exhibitions, and invites reputed designers for advise and
assistence. It
also has branches, showrooms and warehousing depots abroad.
5) The Indian Institue of Foreign Trade : (Ashoka Bhavan, 93 Nehru Place,
New Delhi-
110024). Besides training courses for export executives, this Instiute carries out
surveys of
various markets and publishes them.
6) The Trade Development Authority of India : (Bank of Baroda Building, 16
Parliament
Street, New Delhi- 110001). Handicrafts and garments are included in it's trade
promotion
activities among other items. It also has offices in New York, Frankfurt and
Tokyo. Besides
inviting buyers, it arranges buyer- seller meets in selected markets.
7) The Export Credit Gaurantee Corporation : (Head office : Express
Towers, 10th Floor,
Nariman Point, Bombay-400001). It provides export credit intelligence and
issues, covers
against risks. It also has branches in Delhi, Calcutta, Chennai and Cochin.
8) The Export Inspection Council : (14/1-b Erza Steet, World Trade Centre,
Calcutta-
700001). This Council has especially been set up to ensure the quality control
and Preshipment
Act. The Council has also set up a number of Export Inspection Agencies.
9) The Federation of Indian Export Organisation : (Allahabad Bank
Building, 17
Parliament Street, New Delhi-110001). It is a non profit servicing institution, set
up jointly by
the Government, industry and trade. FIEO is an apex forum coordinating and
supplimenting
the insitutions. It also gives special attention to the export promotional activites
of small
sector including crafts.
10) The Trade Authority of India : (Pragati Maidan, New Delhi-110001) The
TFA is an
autonomous organisation established by the Government of India as a company.
Started in
March 1977 it has today become a highly effective organisation giving a new
orientation to
the country's trade promotional activities. It unifies policy direction, controls and
implements
programmes of India's participation in fairs and exhibitions, both in India and
abroad.
Handicrafts continue to recieve the special attention of the TFA
Handicraft Materials
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Craft Focus Magazine
Trade only, latest products,inspiration, news and advice www.CraftFocus.com
India is a treasure trove of the most exquisite handicrafts available. Various raw
Materials
have lent themselves to an array of exotic items that are instantly captivating.
The amazing
diversity in Indian cultures and traditions, ensures variety in the transformation
of every
single material to a handicraft item. The deft hands of the craftsman breathes
life into these
Materials shaping them into beautiful pieces of art. Click on to read about the
different
Materials used in different parts of India, and the various handicraft items made
out of them.
Silver Rose Beads
Exquisite Gemstone and Pearl Beadsdiamonds, sapphires, and rubies
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Handmade 3D Mural Tiles
Handmade Ceramic Mural Art Tiles,Rooing Tiles,Ceramic Glazed Jaalis!
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Aluminum Crafts
Splendid designs with panache, Indian artisans produce marvelous work of
aluminum crafts
each unique in their own way blending perfectly the antique & contemporary art
work.
Bead Crafts
Beads of transparent & semi transparent nature are pleasingly used to give
shape to varied
aesthetically appealing products helping in enhancing the overall impact on the
onlookers.
Brass Crafts
Brass craft ornamentations always have a spell bounding effect on people with
their minute &
detailed engravings highlighting the effortless beauty put into them by the
dexterous
craftsmen.
Cane/Bamboo Crafts
Add feathers to the surrounding's beauty by incorporating fragilely designed
cane & bamboo
items in the decor, thus, depicting the rich Indian artistry in the most
sophisticated style.
Ceramic Crafts
Express imaginative thoughts & add magnetism to the milieu with these
artistically designed
ceramic products projecting the artist's mastery over one of the finest Indian
artwork.
Coir
Intoxicate the senses with the finely crafted coir fiber poducts. Bring the Indian
rural touch to
the rich & suave drawing rooms & highlight the intricate formation of eye
catching coir
artifacts.
Gems
Give concreteness to imaginations by imparting exclusive shapes with
refinement to gem
products. Enhance the frailness of gem jewelry products by incorporating
equally fragile
patterns.
Glass
Glassware depicts the richness & sophistication of the traditional art craft
coupled with
elegance& frailness. An ultimate decorative item, glassware products have
never lost the
enigmatic spell.
Paper Crafts
Bring color to life by decorating the environment with attractively handcrafted
paper products
available in unique range of designs, vibrant hues & variety.
Ironmongery
The raw appeal imparted to the varied products through engravings done on
forged iron
Materials adds a classy touch to any setting projecting the rich tradition of
ironware.
Ivory
Grace the pristine beauty of a living space with the extraordinarily crafted ivory
ware
products, thus, reminder of the rich past culture & tradition with their masterful
cuts, carvings
& designs.
Jute
Elaborate & intricate designs make the most appealing environment friendly
jute products
perfect for decorating any setting, leaving an aesthetic & pristine touch.
Leather Crafts
Leather crafts have always enamored people with their soft & royal sheen & rich
material.
Available in a wide range of products, leather has been in usage since ages
without losing its
timeless charm.
Metal Crafts
Metal crafts have lured the customers with their refined artwork. Be it copper,
bronze or non
ferrous elements, all appeal the eyes when coupled with inlay work &
embellishments.
Papier Mache Crafts
Alluring crafts made of waste paper Materials, papier mache crafts have created
a niche
market for themselves successfully with wild imaginations carved out beautifully
on these
Materials.
Pottery
The age old tradition of pottery has been kept alive by craftsmen blending the
antique with
modern designs. Adorn the setting with these ethnic crafts available in wide
range of designs.
Stone Crafts
Stone crafts find place in any setting due to their extreme functional aspect. Be
it kitchen,
garden, office or a public place, stone crafted products have immense
importance.
Silver Crafts
Owing to the unique appeal and intricate craftsmanship of adept Indian
craftsmen, there is a
huge demand of aesthetically created silver crafts.
Terracota Crafts
Terracotta work has always enhanced the decor with their appealing beauty
leaving people
dumbstruck. Giving shape to varied figurines & plaques, these earthenwares are
worth
possesing.
Textile
Vibrant colors with intricate & interesting patterns impart a definitive character
to the varied
facets of Indian textile, thus, constantly introducing the customers to the rich
Indian textile
tradition.
Wood Crafts
Redefine the appearance of the home furnishing area by incorporating distinct
decorative
items in wood Materials. Shaped with fine cuts, intricate detailed work,
imaginative designs
make them look unique.
Wrought Iron Crafts
The raw appeal of wrought iron crafts is still intact with people dazed by the
antique &
fabulous artwork perfect to impart individuality to a milieu with their flawless
beauty.
Competitive Situation
German giftware and handicrafts consumption is growing more or less in line
with the
relatively slow growth rate of income during the last years. Thus, expectations
for additional
growth are not very high. Annual growth rates of between 1.5-2 percent are
forecast for the
next few years for the overall giftware and handicrafts market. In general the
market shows
good business opportunities if prices and quality are competitive and delivery
schedules are
fulfilled.
Apart from its own producers, Germany is supplied by giftware and handicrafts
from nearly
all of the European countries. German firms often import specific product groups
from a
particular country. Major suppliers of pottery are, for example, Spain and
Portugal; fine
exclusive stationery comes from Italy, France and Switzerland; candles from
Poland, China
and Portugal; dried flowers from the Netherlands etc.
Fierce price competition in Germany is intensified by the increasing quantity of
Chinese and
Asian made products on the market. For India this situation coupled with the
relatively
strong Indian rupee which means that firms proving to be most successful in the
recent past
have offered niche market giftware and handicrafts, i.e., exclusive to Indian
handicrafts items
or new-to-market products.
A few well-established German manufacturers of giftware and
handicrafts items are:
Koziol GmbH, Erbach Krebs-Glas-Lauscha GmbH, Ernstthal
Barti GmbH, Garching Margarete Steiff GmbH, Giengen
Duni GmbH & Co. KG, Bramsche WMF AG, Geislingen
Rastal, Hoehr-Grenzhausen Rosenthal AG, Seib
Fartak, Lahr W. Goebel Porzellanfabrik, Roedental
GIES Kerzen, Glinde Walther-Glas GmbH, Bad Driburg
Jet Papier GmbH, Bernau
Sales volume of specific sub-sectors (estimates):
Some estimates of individual giftware and handicrafts subsector volume sales
are provided as
follows:
Seasonal: Market insiders estimate the total volume of the seasonal items
market, including
Christmas, Easter, Valentines Day and the German counterpart of Thanksgiving,
at DM 7.7
billion. In 1997, about DM 3 billion were spent alone for Christmas decoration,
Christmas
floristic items and Christmas trees only. Christmas items are usually imported
from China,
Taiwan, Thailand, Philippines and India. However, Indian Christmas decorations
as candle
stands or Christmas tree hangings and soft toys find a ready market in Germany
if they are
moderately priced.
Hobby and art supplies: The present market volume of hobby and art
supplies in Germany
is estimated at about DM 3 billion, while the total European market should
amount to DM 12
billion. Insiders believe that this specific market segment still offers some
potential for new
products. A recent survey shows that apart from their school days, most of the
Germans who
do regular DIY or hobby work are between 60 and 69 years (10.8 percent of the
German
adults) old. With the fast ageing of the German population a stronger demand
for hobby and
crafts is likely.
Incentive items: From 1992 to 1998, the total German market for incentives
increased from
nearly DM 3 billion to DM 6 billion.
Toys: In 1998, annual sales of licensing products amounted to about US$ 4.2
billion in
Germany. Also in 1998, the toys market volume expanded to DM 6 billion. Total
annual
sales for computer games and learning games alone, increased to DM 2 billion in
1998
compared to the pre-year level of DM 1.7 billion.
Market Access
EU member states and Asian countries, China and India in particular, are major
suppliers of
giftware and handicrafts to the German market. Indian firms making a first
approach to the
German market are advised to have comprehensive product literature and data
sheets
professionally translated into German. Although English is widely understood, a
wellprepared
translation gives an important marketing edge, particularly in the initial
presentation. Indian firms should preferably appoint an agent or distributor who
can maintain
a stock sufficient to answer short-notice orders.
Customs Duties
Customs duties vary according to material and product. Though duties are high
for a few
items, i.e., dried flowers, potpourri (16.7-20 percent), T-shirts (12.0-13.2) and
hand- woven,
woollen blankets (13.4 percent), the majority of customs duty rates falls in the
range of 5-8
percent. For example:
Customs Duties (in percent)
Ceramics : 4.1 - 7.5
Toys : 5.6 - 6.3
Stationery : 8.4
Plush animals : 6.0
Quilts/blankets : 7.5
Candles : 2.8
Silver jewellery : 2.5
In addition, there is a 16 percent sales tax, which is eventually passed on to the
consumer in
form of the value-added tax (VAT). But the VAT has to be paid when entering
the German
market by the exporter/German importer.
Items that originate from certain animal species, i.e., snakeskin or hides of some
animal, it
must be ensured that the export of these products complies with the Convention
on
Endangered Species (CITES). Regarding sample orders, exporters should be
aware that one
sample with a maximum value of DM 50 each or, five identical samples of one
product group
not exceeding a total value of DM 50, are usually customs free.
Product Standards
In view of the wide field of products that could be considered as giftware and
handicrafts, it
is difficult to name standards. Compliance with EU standards and regulations is
strongly
suggested. There are, however, only few product groups in the giftware and
handicrafts field
that have to follow standards. It is essential that CE-labelling be observed where
required.
The CE-mark (including conformity statement and technical documentation) is
mainly
required for toys (88/378/EEC standard). While the quality regulations for
candles are
obligatory assuring a certain level of quality, the toy regulation and the
electronic standards
have to be observed because of safety considerations:
Major Distribution Channels
Wholesalers
Importers/distributors
Commission agents/sales representatives
Department stores
Mail-order
Internet sales
Tele-shopping
The individual channels are described in detail in the following.
Wholesalers:
Besides offering wide range of goods to retailers for direct sales, this channel
also supplies
large quantities of individual articles. They are very particular in maintaining
consistency in
the kind of products and their quality. One of the distinguishing features of
wholesalers is to
provide distribution and storage facilities. Specialised wholesalers deal in sales
to retailers as
well as to final consumers. They maintain high quality standards and but have a
narrower
and in-depth range of arts and crafts.
Importers/distributors:
Most Indian giftware and handicrafts companies use importers/distributors to
market and sell
their giftware and handicrafts lines. They buy and sell on their own account.
Thus, the
companies take advantage of the distributor's expertise, his sales force and his
existing
distribution channels. Distributors call on giftware and handicrafts retailers,
purchasing
groups and supermarkets. The distributors' mark-up varies depending on the
giftware and
handicrafts item, but at least 50 percent. While the mark-ups vary according to
the
distributor; they usually also depend on the exclusivity of a product and on its
competitiveness in the overall giftware and handicrafts market.
Germany hosts more than 45,000 giftware and handicrafts retailers. Several
retailers import
directly from the United States and sell to the German customer. Usually these
are small
companies looking for items new to the market and handling small orders only.
Commission agents:
Commission agents provide Indian companies with direct access to the German
market and
direct control. Independent commercial agents are normally working on a 15
percent
commission and operate on a regional basis. They concentrate on specialist
retailers,
purchasing groups and department stores. Commission agent contracts are
based on stringent
EU and German regulations. An Indian firm wishing to appoint an agent should
make sure
that such standard contracts meet its expectations. In order to facilitate market
entry efforts
by the agents their initial commission is often a few percent higher than the
"usual"
commission. These additional payments are to reimburse the agent for
substantial advertising
and any special efforts facilitating the new product's market entry.
Department Stores:
Indian companies interested in establishing business contacts with major
department stores,
mail-order houses and retailers may also choose the direct approach.
Department stores in
particular, prefer to deal directly with manufacturers. Their buyers are very
specialized and
only handle a limited range of products. At some occasions department stores
also buy
through independent commercial agents. Quite often they have their own
buyers as well as a
few agents that usually work with them and who know their assortments. If a
department
store decides to import a particular giftware and handicrafts item, it places bulk
rather than
small orders.
Mail Order:
On an average, each German consumer buys products totaling to DM 500 each
year from
mail-order houses. There are about 200 mail order companies in Germany. In
Europe,
Germany is the largest mail order market, followed by Great Britain and France.
The total
European market volume for mail order products is estimated at approximately
DM 90
billion. Of the 20 major mail order companies in Europe, 12 have their
headquarters located
in Germany. Among them are the world's largest mail order companies: Otto
Versand in
Hamburg and Quelle Schickedanz AG & Co. in Fuerth. In addition, several
German mail
order companies operate in other European countries, as well.
Internet Sales:
Germany will become market leader among the EU countries with regard to
sales over the
Internet by the year 2000. It is anticipated that by then German electronic sales,
which are
estimated to reach a volume of DM 500 billion worldwide in 2000, become
second in the
worldwide ranking after the United States and before Japan. A typical German
Internet user
and a major German mail-order publication is between 20-39 years old, is highly
educated
and earns more money than the average German consumer. This age group
consists of about
4.5 million Germans. Seventy percent of these consumers are male. Already
today, the
Internet is a major sales channel for German mail-order houses.
Teleshopping:
QVC and HOT are the two tele-shopping channels in Germany. They operate all
over
Germany and offer various types of giftware and handicrafts; jewellery, fashion,
health,
beauty; household consumer goods; collectibles and home accessories.
MODE OF TRANSPORTATION CHOOSEN BY US.
Our study is basically to show the richness of India in “Handy Craft”. India is
huge producer
and exporter of handy craft products such as clothes , gems , jewellaries ,
leather products ,
paintings etc. Gems and jewelleries are exported through ariel route ( shown by
red
line)whereas all other products are transported through sea route ( shown by
black line )
because they are transported in bulk.

CONCLUSION
As we conclude the whole data we can see the result that India enjoy
the
Monopoly in this sector and every handycraft industry is influenced by
India
because India is the largest producer and exporter of handycraft and
supply
chain management and logistics play the important role in this this
particular
sector, this is the backbone of this industry . An effecent supply chain
gives
the competitive advantage to this industry.
Reference
http://www.india-crafts.com/business-reports/indian-handicraft-industry/handicraft-
policies.html
http://www.terpconnect.umd.edu/~mstanto1/world-map.jpg
http://www.india-crafts.com/business-reports/indian-handicraft-
industry/handicraftintroduction.
htm
http://www.india-crafts.com/business-reports/indian-textile-industry/handicraft-
textileindustry.
htm
http://business.mapsofindia.com/india-industry/spinning.html
http://www.india-crafts.com/business-reports/indian-handicraft-
industry/handicraftexports.
Html
European Union: A promising market for Indian handicraft
exporters

Writuparna Kakati | 19 Sep, 2008

Often considered as a cottage industry, the Indian handicraft industry
has outgrown its image to evolve into one of the major contributor for export and foreign
revenue generation. Today, it is the second largest employment-generating sector in the
country providing employment to more than six million people.

The handicraft industry in India has witnessed a consistent growth of 15 per cent over a
decade turning itself into an important suppliers of handicrafts to the world market. The
industry is expected to achieve an export turnover of Rs. 39,000 crore by 2009-10 that, in
turn, will also create around 20 lakh new job opportunities.

Although India's exports of handicrafts appear to be sizable, the country's share in the
USD 100 billion international handicrafts market is just about 2 %. Despite the existence
of a strong production base and a massive workforce, India has not been able to encash
the existing opportunities in the handicraft sector. Analyzing the cause behind the small
share on Indian handicrafts in the global market, the main factor which comes out is the
Indian exporters inability to identify potential overseas market. Indian handicrafts are
highly acclaimed all over the world for their large variety and diversified range. But still
most of the Indian exporters in this field are unaware about international requirements
and current market trends.

Current export statistics

The India handicraft industry was worst hit by the sudden rupee appreciation during the
last year. Following rupee appreciation of over 13% against the value of US dollar in the
last financial year, the handicraft sector of the country lost revenues of around $500
million and could export only around $3 billion, as against the target of $3.5 billion.

During 2007-08 (April to March), the exports of handicrafts have shown a decrease of
Rs.3276.09 crore, from Rs. 17288.14 to Rs. 14012.05 crore, a decrease of 18.95% in
rupees term. In dollar terms, the exports have shown the decrease of US $ 330.12
millions i.e. the exports decreased by 8.66% over the similar period in 2006-2007.

During 2008-09 (April to August), the exports of handicrafts have shown an increase of
Rs. 130.31 crore, from Rs. 4302.04 to Rs. 4432.35 crore, an increase of 3.03% in rupees
term. In dollar terms, the exports have shown the increase of US $ 8.03 millions i.e. the
exports increased by 0.77% over the similar period in 2007- 2008.

During the period, the exports of woodware, embroidered & crocheted goods, shawls as
artware, imitation jewellery and misc. Handicrafts showed the increasing trend
11.82%,8.55%,5.36%,4.95% and 3.09% in rupees terms respectively and
9.36%,6.17%,3.06%2.64% and 0.83% in us$ terms respectively whereas art metal ware,
hand printed textiles & scarves, zari & zari goods decreased by 0.81%,2.02% and 2.15%
in rupees terms respectively and 2.99%,4.17% and 4.31% in us$ term respectively.
Overall an increase in the rupee term was 3.03% and in the US $ term was 0.77% .

European Union: A promising market

In 2005, the total EU consumption of wooden gifts and handicrafts amounted to € 1,251
million. According to different market research firms, the wooden gifts and handicrafts
market in the EU is likely to increase by 2-3% annually until the end of the decade.
In 2005 the period total production of wooden gifts and handicrafts in the EU amounted to
€ 936 million. The frames market accounted for 64% of consumption of wooden gifts and
handicrafts in 2005 while the statuettes and caskets market accounted for 36% of
consumption of wooden gifts and handicrafts during the period.

In 2006, the total value of wooden gifts and handicrafts imported into the EU amounted
to
€ 717.2 million. Imports from developing countries grew almost 5% from 2004 to 2006.
Almost 46% of total imports into the EU come from China. The rest of the imports from
developing countries are supplied by Indonesia 10.8%, Thailand 9%, India 5% and others
0.2%.

The best opportunity for the India exporters of handicraft items exist in the low-end of the
market, as labour costs are generally lower in India. While preparing the export plan, it is
important to keep in mind that the trade structure of the handicraft market in the EU is
highly complex in the sense that handicrafts and wooden gifts are distributed through
many different intermediaries and retailers. There are hardly any shops selling only
wooden gifts and handicrafts.

Market segmentation
The EU gifts and handicraft market can be segmented roughly into upper, middle, and
lower segments. This segmentation applies both to the retail and other levels (such as
wholesalers and importers) in the market.
• Upper segment: 5-10%
• Upper-middle segment: 20-30%
• Lower-middle segment: 30-40%
• Lower Segment: 20-40%
Distribution intermediaries
While exporting, choosing the right trading partner is very important. As mentioned
earlier, the trade structure of the handicrafts and wooden gifts market in the EU is very
complex. Therefore it is a must for exporters willing to export to the EU to find out the
best trading partner according to their specific profile, product range and goals. Some
main distribution channels exporter may consider are -
• Agents
• Importers-wholesalers
• Buying Groups
• Retailers
• Export marketing organisations.
Some most promising EU markets:
Germany: Consumption of the wooden gifts and handicrafts in Germany was € 180
million (approximately ) in 2005 of which the frames market amounted to € 67 million
(37%) while the statuettes (54%) and caskets (46%) market amounted to € 113 million.
Researchers has predicted that the German handicraft, wooden and gift article market will
slowly increase until 2009, by approximately 1.8% annually.

France: Consumption of the wooden gifts and handicrafts in France was € 134 million
(approximately) in 2005 of which the frames market (59%) value amounted to € 79
million while the statuettes (46%) and caskets (54%) market amounted to €55 million.
According to market researchers, the total gifts and decorative articles market in France is
expected to increase by approximately 1.4% annually during the period 2006-2009.

United Kingdom: Consumption of the wooden gifts and handicrafts in United amounted
to € 430 million (approximately) in 2005 of which the frames market (68%) value
amounted to € 104 million while the statuettes (30%) and caskets (70%) market
amounted to €47 million during the period. Researchers forecast 7% annual increase the
consumption of the UK wooden gifts and handicrafts market.

Italy: Consumption of the wooden gifts and handicrafts in United was € 152 million
(approximately) in 2005 of which the frames market (76%) value amounted to € 325
million while the statuettes (50%) and caskets (50%) market amounted to €104 million
during the period. Researchers forecast that Italy will show steady growth in GDP and
population in the coming years and the consumption of the wooden gifts and handicrafts
will also increase in the country.
Spain: In 2005, the apparent consumption of wooden gifts and handicrafts in Spain
amounted to € 201 million of which the frames market (65%) value amounted to € 131
million while the statuettes (64%) and caskets (36%) market amounted to €70 million
during the period. The population of the country is projected to increase to 45.3 million
by 2015 in parallel with annual increase in GDP of around 7% for the next few years.
Therefore, it can be expected that the consummation of the wooden gifts and handicrafts
will grow in the coming years.

The Netherlands: In 2005, approximate consumption of wooden gifts and handicrafts in

the Netherlands amounted to €30 million of which the frames market (67%) value
amounted to € 20 million while the statuettes (60%) and caskets (40%) market
amounted to €9 million during the period. Researchers forecast that Dutch wooden gifts
and handicrafts market will grow by 1.5% in the coming years.

Belgium: In 2005, approximate consumption of wooden gifts and handicrafts in Belgium

amounted to €13 million of which the frames market (62%) value amounted to € 8
million while the statuettes (50%) and caskets (50%) market amounted to €5 million
during the period. Researchers forecast that Dutch wooden gifts and handicrafts market
will grow by 1.5% in the coming years. Researchers forecast that the wooden gifts and
handicrafts market in the country will grow by an average of 3% annually to the year
2010.

Opportunities for Indian exporters

• Indian exporters may consider partnering with an outsourcing European company.
Opportunities in this field include licensing, co-makership, etc.
• Indian exporters can target the low end market of the EU as labour costs in India is
comparatively low and European manufacturers cannot compete with us on this
terrain.
• Indian exporters should also consider exporting products with original ethnic value.
Products which are handmade, original and artistic are highly acclaimed in the Eu
market.
While targeting the EU handicraft and wooden products market in the EU, exporters
should keep themselves aware of some potential threats such as European customers'
quality consciousness, increasing expectations in terms of design, colours, environmental
friendliness of products, etc. As an exporter from a developing country, Indian exporters
should also be aware of the EU standards and regulations to which they must comply with
while exporting to the EU countries.

Concluding, the EU is a massive market with a huge reservoir of wealthy consumers and,
therefore, it is well worth considering it as a highly promising market. Opportunities are in
abundance in the EU handicraft market but Indian exporters have to go there to pick them
up. The handicrafts and wooden articles market contains a wide range of products, and
therefore, it is not possible to define a single best export market strategy for all the
exporters engaged in the field. Exporters should do a lot of market research themselves
and analyze all the different market segments and criteria very carefully.
 Introduction to Crafts

Introduction

India is a land where every corner is evident with the greatness of art and craft. The
traditional quintessence of Indian art and craft can be seen even in the daily used objects like
earthen pot, mugs, bed-sheets or any such things. The objects are created with a great
creativity that portrays magnificent work of art. Indian art and craft is an old saga. Although,
the present state of the industry is flourishing with a touch of contemporary designs and
patterns but it is deeply entrenched with the rich craft customs from the past. The
uniqueness in the Industry lies in its own way. That is what Indian art and craft industry is. In
handicrafts there is a continuous swing between utility and beauty. That swing has a name:
pleasure.

India’s richness in art and craft can be seen in every product whether garments,
jewelries or household furnishings. These products are a perfect mix of traditional designs
and modern techniques. Due to their diversity in designs and their being utilitarian in nature,
they are high in demand. This has given many Indian traders to invest in the industry and
flaunt India’s custom across the world. Products such as table mats, napkins, bed sheets,
lamp shades etc are made out astoundingly with the use of natural material, textile printing,
block printing, tie and die, hand printing etc, and are much in demand. Gems and jewelries
are other obsession of India. The rising demands in gems and jewelries have transformed
Indian craft traditions into a full-grown organized industry. Garments such as woolen shawls
and phirens from Himachal, traditional sarees ranging from Banarsi Amru, Tanchoi, Paithani,
Patola, and Kancheevaram are the most popular export garments. Indias zardozi and brocade
work are highly recognized these days. Other utilitarian craft products like cushions, curtains,
bedcovers, sheets, metal furniture, wood furniture, boxes, cabinets, terracotta items,
utensils, garden pots, brass and silverware, carpets, rugs and durries from Kashmir, jute and
coir items, wood and stone sculptures, traditional paintings, decorative pieces, embellished
wooden sculptures, stone and wood carvings, and many more are on the rise in India as well
as in abroad.
Handicraft or Artisanal Products

"Handicraft or Artisanal products are those produced by artisans, either completely by

hand, or with the help of hand tools or even mechanical means, as long as the direct manual
contribution of the artisan remains the most substantial component of the finished product.
These are produced without restriction in terms of quantity and using raw materials from
sustainable resources. The special nature of artisanal products derives from their distinctive
features, which can be utilitarian, aesthetic, artistic, creative, culturally attached,
decorative, functional, traditional, religiously and socially symbolic and significant."

Handicrafts are a part of the culture of a nation or ethnic group and represent a key
component of socio-economic life, even if handicraft activities are not fully included in
national accounts. Beyond their aesthetic and cultural dimensions, handicrafts present
several interesting socio-economic characteristics:

 The handicrafts sector is a home-based industry, which requires minimum

expenditure and infrastructure to establish. Therefore it can create jobs at a
minimal cost.
 In general this sector uses existing skills and locally available raw materials.
 Inputs required can easily be provided and product adaptation is less expensive
than investing in energy, machinery or technology.
 Income generation through producing handicrafts (which is often an important
activity in rural societies) does not disturb the cultural and social balance of either
the home or the community.
 Many agricultural and pastoral communities depend on their traditional craft skills
as an essential source of income in times of drought, lean harvests, floods or
famine. However, even in times of plenty their traditional skills in craft making are
the basis for additional income generating activities that are a natural means to
social and financial independence.

The Handicrafts Sector plays a significant & important role in the country’s economy.
Handicrafts are a part of the culture of a nation or ethnic group and represent a key
component of socio-economic life, even if handicraft activities are not fully included in
national accounts. The handicrafts sector is a home-based industry, which requires minimum
expenditure and infrastructure to establish. Therefore it can create jobs at a minimal cost. In
general this sector uses existing skills and locally available raw materials.

India is one of the major suppliers of handicrafts to the global market. Highly labour
intensive, and basically cottage based, the industry is more widespread in the rural and urban
areas. The industry provides a livelihood for more than 6 million artisans including a big share
of women artisans, and people from the weaker sections of the society. There is a good
demand for Indian handicraft products in countries such as US, Canada, France, Britain, Italy,
and Germany. Indian handicrafts are much preferred in the fashion industry. Development in
sectors like retail, real estate etc increases the demand, and gives more opportunities for
handicraft products. Emergence of e-commerce and internet has emerged as a promising
distribution channel to market and sell handicraft items.

Scope of Crafts

Indian handicraft industry has a large, diversified, and potential market. It is equipped
with strong and diversified supportive retail infrastructure. It has an assortment of product
range due to the diversified culture prevalent in the country. The industry is further
enhanced with low capital investment, production flexibility, and cheap labor rates that
result in competitive price for its products. Handicrafts sector has fewer barriers for new
entry, and also proves to be a potential source of employment.

The Handicrafts Sector plays a significant & important role in the country's economy. It
provides employment to a vast segment of craftpersons in rural & semi urban areas and
generates substantial foreign exchange for the country, while preserving its cultural heritage.
Handicrafts have great potential, as they hold the key for sustaining not only the existing set
of millions of artisans spread over length and breadth of the country, but also for the
increasingly large number of new entrants in the crafts activity. Presently, handicrafts
contribute substantially to employment generation and exports. This sector has witnessed a
significant growth of 3 % annually. Some of the promising areas in the crafts sector during the
Xth Five Year Plan had been:
 In view of the 3% growth annually in Handicrafts sector, it is presumed that the total
employment in the sector as at the end of 10th plan is 67.70 lakhs, which at the beginning of
the 10th plan was 60.16 lakhs, showing an annual growth rate of about 3%, on the basis of this
growth in the sector it is expected this employment to reach 80 lakhs by the end of 11th Plan.
The plan expenditure during the period also witnessed a steady growth increasing from
Rs.71.65 crores in 2002-03 to Rs.220.00 crores in 2009-10. The production during the period
2002-03 has decreased from Rs.19,564.52 crores to Rs.19.375.88 crores during the year 2008-
09 although in the intervening period it had shown a rise in the graph of production in view of
increase in exports which started decreasing from the year 2006-07 due to rupee appreciation
against US $ & recession in World Economy. The exports during the period decreased from
Rs.12434.38 crores in the year 2002-03 to Rs.10,891.85 crores at the end of the year 2008-09
registering a cumulative decline 12.40%, The budget outlay for the year 2010-11 has been
proposed for Rs. 285 crores. Handicrafts activity being a State subject, its development and
promotion are the primary responsibility of every State Government. However, the Central
Government is supplementing their efforts by implementing various developmental schemes.
Efforts are being augmented during the 11th Five Year plan on the core issues for the
development of the sector in some thrust areas as mentioned below.

➢ Providing Infrastructural support for production & Exports

➢ Improve quality & product diversification with more awareness for both
stakeholders & consumer.
➢ A greater role for NGO as implementing partners and participation of private
resources - both human and financial.

In many developing countries, the contribution made to the economy and the export
market through artisanry is increasing as more new craftspeople, especially youth and
women, are introduced into the sector as a solution to both rural and urban unemployment.
At the same time, mass-produced goods are steadily replacing utility items of daily use made
by craftspeople, but without the concomitant capacity to be absorbed into the market. As a
result, the livelihoods of many craftspeople are put at risk. Similarly Indian Handicraft sector
has, however, suffered due to its being unorganized, with the additional constraints of lack of
education, low capital, and poor exposure to new technologies, absence of market
intelligence, and a poor institutional framework. However, it is expected that this sector will
develop because of the following reasons.

1. Exports continued to grow for high value-added crafts products.

2. Consumer tastes changed rapidly on account of economic liberalization.
3. Focus on quality and product diversification with increasing consumer
awareness.
4. Increasing challenge offered by availability of mass-produced competing
product lines using different raw materials (often man-made) and mechanized
production techniques.
5. Government policy envisaged a greater role for NGOs, and participation of
private resources both human & financial.

SWOT Analysis

Here is the SWOT Analysis of the Indian art and craft industry that gives you more
information on the present status of the industry;

Strengths

• Handicrafts are a part of the culture of Indian Nation or ethnic group.

• The handicrafts sector is a home-based industry.
• It requires minimum expenditure and infrastructure to establish.
• This sector uses existing skills and locally available raw materials.
• It can create jobs at a minimal cost.
• Gives potential source of employment
• This sector caters to the different market sectors covering handicrafts, textiles and
jewelries.
• It provides wide variety in each product with intricate design and exhibit diversified
culture of India.
• The industry has potential in domestic as well as international markets.
• It is a great source of foreign revenue as it is a huge export industry.
Weakness

• The sector lacks communication and infrastructure

• Conventional techniques used for production
• No proper training facility for skill development
• Industry is still confined to rural areas of the nation
• No proper awareness about crafts development
• Lack of co-ordination between Indian manufacturers-exporters and Government
• Inadequate information available on new technology
• No promotional support is given to the sector

Opportunities

• India have its own specialty in art and craft

• There is emerging demands of Indian crafts across overseas
• There is a scope for training, development and research for enhancing the value
• It can create more jobs at a minimum cost.
• Development of retail sectors and changing lifestyles offer huge requirements of such
products
• Rise in the industry is due to development in tourism
• Internet has emerged as a mean to develop its market network

Threats

• Increasing competition in domestic markets

• The artisans not used to safeguard their own interests.
• Huge products manufacturing by countries like China
• Better trade terms are offering by these countries
• Competing countries offer better technological support and R&D development
facilities
• Challenge to establish balance between demand and supply of quality products

Indian art and craft is highly appreciated and constantly flourishing in domestic and
foreign markets are due to its utilitarian nature and high acceptance among people of India
and people across the whole world. So it is essential that this sector should be developed
properly for employment generation, value addition to the existing products as well as higher
export earnings.