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  1. 1. INDIANHANDICRAFTINDUSTRY By Fakhruddin Badshah
  2. 2. INTRODUCTIONDEFINATION ACCORDING TO GOVT. OF INDIA :“Handicraft can be defined, which is made by hand; should have someartistic v alue; they may or may not have functional utility.” Handicrafts are made from raw materials and can be produced inunlimited numbers. Such products can be utilitarian, aesthetic, artistic,creative, culturally attached, decorative, functional, traditional, religiouslyand socially symbolic and significant. INDIAN HANDICRAFT INDUSTRY: The Handicraft Industry is one of the important productive sectors.Various attempts have been made to define this broad and diversifiedindustry. Crafts are unique expressions that represent a culture, tradition andthe heritage of a country. India is well known for its exotic crafts legacy andtradition. It is the land of art and crafts, a country of rich culture, history and
  3. 3. CONTD.-and traditions.•A wide range of Indian Crafts represents the diversity ofcrafts tradition in India.•Variety of designs and finishes are available in Indianmarket that reflects excellent artistic skills of craftsmen aregreat in demand globally.•India is one of the important suppliers of handicrafts to theworld market.•This sector is economically important from the point of lowcapital investment, high ratio of value addition, and highpotential for export and foreign exchange earnings for India.•As per the latest updates, there are more than 23 millioncraftspeople in India today engaged in the growth of Indian
  4. 4. CONTD.•Basically 9 handicraft items are mostly exported from Indiathat are metal ware, wood ware, hand-printed textiles, hand-knotted and embroidered textiles, leather goods, stoneware,carpets and floor coverings.
  6. 6. CONTD.1. Industry is playing a major role in the development of Indian economy.2. As per the latest updates, there are more than 23 million craftspeople in India today engaged in the growth of Indian handicrafts industry.3. Second largest employment sector in India, just after Agriculture.4. 63% of exports turnover5. The industry is spread allover the country mainly in rural and urban areas.6. Most of the manufacturingunits are located in rural and small towns, and there is huge market potential inall Indian cities and abroad.
  7. 7. CONTD. The Indian Handicraft Industry is showing continuous growth rate of 20%every year. Handicrafts industry is one of the important segments of decentralize sector in India. According to the national census of handicrafts, undertaken by the National Council for Applied Economic Research the value of handicrafts produced last year were of Rs.26,213 Crore. The Indian Handicraft Industry is a $100 billion industry worldwide.0. India’s contribution in world market is 1.2%1. The total exports of crafts items: - Rs. 13412.92 Crore.2. Industry’s share in Indias exports:- 1.51 %
  8. 8. MAJOR PLAYERS Crafts Areas Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Thanjavur, Madras,Art Metal-ware Mandap, Beedar, Kerala & Jagadhari, Jaiselmer Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur,Wooden Crafts Bangalore, Mysore, Chennapatna, Madras, Kerala & Behrampur (WB) Kutch (Gujarat), Jaisaimer, Baroda,Embroidered goods Lucknow, Jodhpur, Agra, Amritsar, Kullu, Dharmshala / Chamba & SrinagarMarble & Soft Stone Crafts Agra, Madras, Baster, Jodhpur
  9. 9. MAJOR PLAYERS Crafts Areas Agra, Madras, Baster, JodhpurTerracottaZari & Zari Goods Rajasthan, Madras, BasterHand printed Textiles & Amroha, Jodhpur, Jaipur, Farrukhabad, Scarves Sagru & Sanganer Delhi, Moradabad, Sambhal, Jaipur,Imitation Jewellery Kohima (Tribal)Artistic Leather Goods lndore, Kolhapur, Shanti Niketan (WB)
  11. 11. As Indian Handicraft Industry contributes very important role in Indianeconomy. Hence For the proper functioning and operation of industrygovt. has made some policies and regulation. In India, the Ministry OfTextile is responsible for the formulation of policy, planning,development, export promotion and regulation of the HandicraftIndustry. Some policies & rules are as follows:1.There are no restrictions regarding location for establishingmanufacturing units.2. All producers of handicrafts are exempt from obtaining IndustrialLicense to manufacture.3.The delicenced undertakings, however, are required to file anIndustrial Entrepreneur Memoranda (IEM) in Part A with theSecretariat of Industrial Assistance (SIA), and obtain anacknowledgment.
  12. 12. S AW NO AT L Y S I S
  13. 13. Strengths: Strengths: Weaknesses: • Large, diversified and potential • Large, diversified and potential • Lack of infrastructure andmarket.market. communication facilities. • There is large product variety • There is large product variety and range is available because of nd range is available because of • Unawareness about internationaldiversified culture. diversified culture. requirements and market. • It has strong, diversified and • It has strong, diversified and • Lack of co-ordination betweensupportiveretail infrastructure.upportive retail infrastructure. government bodies and private players. • Diversified product range that • Diversified product range that • Inadequate information of newservicedifferent market.ervice different market. technology. • Cheap labor rates that result to • Cheap labor rates that result to • Inadequate information of currentcompetitiveprice.ompetitive price. market trends. • Need low capital investment. • Need low capital investment. • Less interest of young people in craft industry. • There is flexible production • There is flexible production • Lack of skilled labor.lexibility.flexibility. • Still confined to rural areas and small cities and untapped market. • Low barriers of new entry. • Low barriers of new entry. • Lack of promotion of products.
  14. 14. Opportunities: Opportunities: Threats :•• Rising demand for handicraft Rising demand for handicraft • Competition in domestic market.products in developed countries such products in developed countries suchas USA, Canada, Britain, France, as USA, Canada, Britain, France, • Balance between high demandGermany, Italy etc. Germany, Italy etc. and supply.• Developing fashion industry requires • Developing fashion industry requires • Quality products produced byhandicrafts products. handicrafts products. competing countries like China, South• Development of sectors like Retail, • Development of sectors like Retail, Africa.Real Estate that offers great Real Estate that offers greatrequirements of handicrafts products. requirements of handicrafts products. • Better Trade terms offered by competing countries.• Development of domestic and • Development of domestic andinternational tourism sector. international tourism sector. • Increased and better technological support and R&D• e-Commerce and Internet are • e-Commerce and Internet are facility in competingemerged as promissory distribution emerged as promissory distribution countrieschannels to market and sell the craft channels to market and sell the craftproducts. products.
  15. 15. FINDINGS &
  16. 16. 1. In small units only 14% units go for outsourcing.2. Most of the marketing people, which are from their family itself only go and meet the existing customersnobody is searching for new buyers extensively.3. Max. no. of units are making only traditional items, they are not making any new innovative items like- rotating dining table, decorative coffee grinders, CD racks etc.4. Handicraft Industry of Jodhpur is one of the biggest industries of Jodhpur dealing in export With a yearly export of more than 1000 Cr.5. This industry is not investing in machinery even after knowing that the main concept behind success in this industry is bulk supply and this is the point where other countries exceeds.6. most of the exporters are not going for marketing and even if any firm is going then also they are sending only their relatives there instead of any professional.