Handlooms and Handicrafts Sector craved for growth since quite a few years, which has now actually

turned prolific.
No doubt, India has an edge against its competitors like China, Philippines, Thailand, Taiwan and Korea who
generally produce machine-made products. Indian handmade products have a niche market all over the world
creating a distinct impact through exclusive designs, workmanship, finesse, colors and raw material etc. The sector
shows a not so significant growth in the 2009-10 fiscal but grows substantially in the first half of the 2010-11 fiscal.
Keeping in view the trend, the sector is expected to show phenomenal results by the end of 2011.

Result Fetching Units

The swiftly rising growth in handicraft exports came about after a two-year collapse, from the second half of the last
financial year, and the upward trend continues till date. Although there has been an increase in all product categories,
however the increase fashion accessories has been commendable. Fashion product section comprise of costume
jewellery, hand-printed textiles and scarves, embroidered and crocheted garments, bags and purses, zari supplies,
footwear, shawls, belts, chappals, and stoles etc. The average growth of the Fashion accessories section has been
around 32% in the first three months of the current fiscal year. While the international market for fashion jewellery
and accessories is around $16 billion, India's share in this is zero. Increase has been noticed in nearly all the products
categories in exports of handicrafts. In some categories, it showed less and in some it showed more progress.
Going along the trend shown in the markets we can very well see in the under given representation that the
handicrafts sector after touching the Rs.17000 cr. mark in the 2006-07 fiscal started to decline and reached the much
lower Rs.8000 cr. mark in 2008-09 fiscal due to the effect of recession. From 2009 latter half, it started to grow and
the current scenario indicates to witness the Rs.10000 cr. mark by the end of 2010 (represented in Blue). India is not
only benefited from its major markets in US and Europe but is also heading towards newer

Indian Handicrafts Export

Indian Handicrafts Export is one of the most important sources of revenue in the
country. India is known to be the largest exporter of handicraft items among all other
developing countries.
The handicraft industry of India has ensured opportunities to more than six million
craftsmen including females who can utilize their talents to earn a proper livelihood.
Indian handicraft industry comprises of both men and women workers, which has led to a
flourishing economy in these weaker sections of the country. The revenue generated from
the exporting of handicraft items in India during 1998-99 was USD 1.2 billion. The
export production of Indian handicrafts industry is highly significant due to:
•

Low capital investment

•

High ratio of value addition

•

Potentially active for export and foreign exchange income

India has a very less amount of shares in the global market, as the handicrafts sector has
not yet been sincerely explored so as to bring out the hidden potentiality within the
artisans. The major states in India that are involved in exportation of handicraft items
include Uttar Pradesh, Andhra Pradesh, North Western state of Rajasthan, and the coastal
state of Gujarat. The two broad sections in Indian handicraft items are:
•

Consumer goods for daily use

•

Decorative items manufactured by the skilled craftsmen

The Indian handicrafts industry exports the following products by and large:
•

Cloth Paintings
•

Design & Development

•

Floor Paintings
•

Handmade Paper
•

Kashmiri Paintings
•

Pottery
The various handicraft items that are exported worldwide include the following:
•

Textile based handicrafts- the hand printed textile designs include block and
screen painting, kalamkari, batik, and bandhanis. These materials are widely used
in bed-covers, bed-sheets, upholstery, dress materials, and tapestry.
•

Clay, Metal and Jewelry- the chief metals used for handicraft items include brass, copper, bronze,
and bell metal. These are used for manufacturing various wares, which are carved out in multifarious
designs both traditional and contemporary.
•

Woodwork- Toys, furniture, decorative items, and other articles are carved out of wood in multi-
faceted designs and are also available in a wide range. Lacquered woodwork is quite eminent in
Indian handicrafts industry.
•

Stone Craft- Various handicraft items in India are manufactured in stones.

Marble, alabaster, and soapstone are used as the primary materials for these
products. These stone crafts are then adorned with semiprecious stones.
•

Glass and Ceramic- the artistic crafts of glass and ceramic are found in varied
range of designs, which are a perfect blend of the Western style and Indian
aesthetics. These products are available in various shapes and colors.
Indian Handicrafts Export have performed best in the following segments:
•

Jodhpur (Raj)- Wooden, Wrought Iron and Sea Shell handicrafts

•

Moradabad (UP)- Art metal wares and imitation jewelry

•

Narsapur (A.P)- Lace and Lace goods

•

Saharanpur (UP)- For Wooden handicrafts and Wrought iron handicrafts

The major clients of Indian Handicrafts Export are as follows:
•

Shawls and Art wares have got their markets in Saudi Arabia, U.S.A. Japan and
U.K
•

Hand printed textiles and scarves have occupied a market in U.S.A., U.K.,
Germany and Canada
•

Art Metal wares have their markets in U.S.A., Germany, U.K. and Italy
•

Imitation Jewelries are highly consumable in U.S.A., U.K., Saudi Arabia and
Germany
•

Wood Wares are widely popular in U.S.A., U.K., Germany and France
•

Zari and Zari goods have found markets in U.K. U.S.A., Japan and Saudi Arabia
•

Embroidered and Crocheted Goods have occupied a huge market in U.S.A., Saudi
Arabia, U.K., and Germany
•

Miscellaneous handicrafts have markets in U.S.A., Germany, U.K. and France

Handicraft Industries in Rural India Economy
The role of Handicraft Industries in Rural India Economy is very important and its
contribution towards the rural economy of India is increasing steadily. The Ministry of
Rural Development and the Ministry of Rural Economy, under Government of India are
the two main governing authorities, which drafts and implements policies for the
handicraft industries in rural India economy. The handicrafts industry of India comes
under the unorganized sector of village economy of India.
India is basically an agriculture-based country and the development of rural
economy of India depends upon the development of its 700-million strong rural
population.
The rural economic policies of India is drafted according to the needs of rural India
since,
 majority of the population (around 70%) lives in about 600,000 small villages. The rural
India is almost wholly agriculture based and a small part of the rural Indian population is
engaged with small industries like handlooms, handicrafts and other traditional produce.
The role of Handicraft Industries in Rural India Economy became important, since today
the organized sector of Indian industry is ready to absorb the products from these
industries. Moreover, with liberal trade and export policy, the export of the Indian
handicrafts industry is on an all time high
The main products that are manufactured by the rural handicrafts industry of India are
as
follows -
•

Art metal wares

•

Wood wares
•

Hand printed & textiles & scarves

•

Embroidered & crocheted goods

•

Shawls as art wares

•

Zari and zari goods

•

Imitation jewelry
•

Miscellaneous handicrafts
The major importers of rural Indian handicrafts are as follows -
•

Art metal wares - USA, Germany, UK & Italy

•

Wood wares - USA, UK, Germany and France

•

Hand printed & textiles & scarves - USA, UK, Germany & Canada
•

Embroidered & crocheted goods - USA, Saudi Arabia, UK, Germany

•

Shawls as art wares - Saudi Arabia, USA, Japan & UK

•

Zari and zari goods - UK, USA, Japan & Saudi Arabia
•

Imitation jewelry - USA, UK, Saudi Arabia & Germany

•

Miscellaneous handicrafts - USA, Germany, UK & France

Presently, the global market of handicraft is valued at US$ 400 billion and India's share in the global
market stands at 2% only. However, the handicraft industries in rural India economy registered an
annual growth rate of 15% consistently over the last decade and it is estimated to grow at the rate of
42% over the next five years annually.
Although, the Handicraft Industries in Rural India Economy is witnessing steady growth over the last
five years but its growth is plagued by certain bottlenecks, like the following -
•

The manufacturing process does not compliments with orders of such products
•

Use of primitive techniques

•

High manufacturing cost

•

Poor quality of products

•

Product design and development to be aligned with the background and history of
the craft, the producer and the market requirements
India, entwined with her rich artistic tradition has provided ample opportunity to make Indian
handicraft to stand apart with its colossal pride. For the greater objective of taking Indian
handicrafts to the next level of maturity a number of handicraft related associations in India
has made their presence felt. Whether to showcase the varied Indian handicrafts or to cater
to the growth and overall mellowness of Indian handicraft, the wide range of Indian
handicraft associations have an immense contribution. The technical, marketing and even
the financial aspects of Indian handicraft are ideally being taken care by these handloom
associations of India. The Handicrafts and Handlooms Export Corporation of India, also
known as HHEC, the central cottage industries or the CCIE, The northeastern handicrafts
and handloom development Association are some of the important handloom related
associations in India.

The All India Handicrafts Board was established in 1952 to guide the Government on
various problems of handicrafts and to provide measures for improvement and development
of Indian crafts. The board also looks after other aspects of handicrafts like the technical,
marketing, financial, organizational and to formulate plans in this direction. It also guides
and provides assistance to the state governments for planning and executing schemes for
the development of handicrafts.

The Handicrafts and Handlooms Export Corporation of India (HHEC) is a subsidiary of the
State Trading Corporation of India, which was established in June 1962. The Corporation
functions in the field of direct export and also help to develop new markets and expand the
old ones. It also provides assistance to introduce new products for the consumers staying
abroad. The Corporation undertakes and executes wholesale orders, conducts retail sale
operations through retail shops abroad. It also takes part in various exhibitions that are
organized throughout the world to promote Indian crafts. HHEC also helps private exporters
by affiliating them as business associates. It also supports a number of publicity and
promotional measures for the export of handicrafts and handloom products.

The Central Cottage Industries Corporation Private Limited is a registered society, which
had absorbed the Indian Cooperative Union. The Central Cottage Industries Emporium
(CCIE) is located at Janpath in New Delhi and is the first sales organization in Indian
handicrafts. The CCIE has branches at Bombay, Calcutta, Chennai and Jaipur.

The Northeastern Handicrafts and Handloom Development Corporation Limited (NEHHDC)

located in Shillong was established in 1977 with the aim to promote and improve the sale of
handloom and handicrafts in the northeastern region.

The National Handlooms and Handicrafts Museum (NHHM) was established in Pragati
Maidan in New Delhi. It comprises of fifteen structures, which represent village dwellings,
courtyards and shrines from various states of India. It is spread over an area of five acres
and has a rare and exclusive collection of Indian crafts.

http://www.india-crafts.com/business-reports/indian-handicraft-industry/