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Industry

Overview

This Sector plays a significant & important role in the country’s economy.  It provides employment to a vast segment of crafts person 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.

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Constraints:  The Handicraft sector has, however, suffered due to its very nature of being unorganized, with the additional constraints of low capital, poor exposure to new technologies, absence of market intelligence, and a poor institutional framework.

Industry Overview
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Handicraft &
Handloom Sector:

The Small Scale and Cottage Sector helps to solve social and economic problems of the artisans, by providing employment to millions of artisans (including those in the Carpets trades) which include a large number of women and people belonging to weaker sections of the society. 

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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 industry is highly labor intensive and decentralized, being spread all over the country in rural and urban areas.  Many artisans are engaged in certain crafts work on part-time basis. 

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Handicraft is a sector that is still explored from the point of view of hidden potential areas. Going back

into the reason for small share of Indian handicrafts in the world market, the main parameter which comes out is ‘SEARCH & EXPLORATION OF HIDDEN CRAFTS OF INDIA’ the field which has not been ever

touched by Indian Handicraft Industry.

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

SWOT:

Indian Handicraft / Handloom Industry 

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Strengths 

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  • Aesthetic and functional qualities wrapped in mist of antiquity. 

  • Hand-made and hence has few competitors. 

  • Variety of products which are unique. 

  • Abundant and economical labour hence can compete on price. 

  • Low capital investment and high ratio of value addition. 

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Weaknesses 

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  • Lack of adequate infrastructure and communication facilities. 

  • Inconsistent quality. 

  • Inadequate market study and marketing strategy. 

  • Capacity to handle limited orders. 

  • Untimely delivery schedule. 

  • Unawareness of international standards by many players in the market.

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Opportunities 

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  • Rising appreciation for handicrafts in major developing countries 

  • Large discretionary income at disposal of consumer 

  • Growth in search made by retail chains 

  • Developing fashion industry requires handicrafts products. 

  • Development of sectors like Retail, Real Estate that offers great requirements of handicrafts products. 

  • Easy Use of e-commerce sites all around the world 

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Threats 

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  • Quality products produced by competitors from Europe, South Africa, South Asia, etc. 

  • Better norms of trade by competing countries for e.g. China 

  • Consistent quality and increasing focus on R&D by competing countries. International standards with better packaging

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