INDIAN HANDICRAFT INDUSTRY

By Fakhruddin Badshah

INTRODUCTION

DEFINATION ACCORDING TO GOVT. OF INDIA :

“Handicraft can be defined, which is made by hand; should have some artistic v alue; they may or may not have functional utility.”

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.

INDIAN HANDICRAFT INDUSTRY: The Handicraft Industry is one of the important productive sectors. Various attempts have been made to define this broad and diversified industry. Crafts are unique expressions that represent a culture, tradition and the heritage of a country. India is well known for its exotic crafts legacy and tradition. It is the land of art and crafts, a country of rich culture, history and

CONTD.-and traditions.•A wide range of Indian Crafts represents the diversity of crafts tradition in India.•Variety of designs and finishes are available in Indian market that reflects excellent artistic skills of craftsmen are great in demand globally.•India is one of the important suppliers of handicrafts to the world market.•This 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 India.•As per the latest updates, there are more than 23 million craftspeople in India today engaged in the growth of Indian handicrafts industry

CONTD.•Basically 9 handicraft items are mostly exported from India that are metal ware, wood ware, hand-printed textiles, hand-knotted and embroidered textiles, leather goods, stoneware, carpets and floor coverings.

ECONOMIC CONTRIBUTION

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.

CONTD.7. 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.

8. 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.

9. The Indian Handicraft Industry is a $100 billion industry worldwide.10. India’s contribution in world market is 1.2%11. The total exports of crafts items: - Rs. 13412.92 Crore.12. Industry’s share in India's exports:- 1.51 %

MAJOR PLAYERS

Crafts Areas

Art Metal-ware

Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Thanjavur, Madras, Mandap, Beedar, Kerala & Jagadhari, Jaiselmer

Wooden Crafts

Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna, Madras, Kerala & Behrampur (WB)

Embroidered goods

Kutch (Gujarat), Jaisaimer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu, Dharmshala / Chamba & Srinagar

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

MAJOR PLAYERS

Crafts Areas

Terracotta Agra, Madras, Baster, Jodhpur

Zari & Zari Goods Rajasthan, Madras, Baster

Hand printed Textiles & Scarves

Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer

Imitation Jewellery Delhi, Moradabad, Sambhal, Jaipur, Kohima (Tribal)

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

GOVT. RULES &

REGULATIONS

As Indian Handicraft Industry contributes very important role in Indian economy. Hence For the proper functioning and operation of industry govt. has made some policies and regulation. In India, the Ministry Of Textile is responsible for the formulation of policy, planning, development, export promotion and regulation of the Handicraft Industry. Some policies & rules are as follows: 1.There are no restrictions regarding location for establishing manufacturing units.2. All producers of handicrafts are exempt from obtaining Industrial License to manufacture. 3.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.

S AW NO AT L

Y S

I S

Weaknesses: • 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.

Strengths: • 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.

Strengths: • 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.

Threats :

• Competition in domestic market.

• Balance between high demand and supply. • Quality products produced by competing countries like China, South

Africa.

• Better Trade terms offered by competing countries. • Increased and better technological support and R&D facility in competing

countries

Opportunities:

• Rising demand for handicraft products in developed countries such as USA, Canada, Britain, France, Germany, Italy etc. • Developing fashion industry requires handicrafts products. • Development of sectors like Retail, Real Estate that offers great requirements of handicrafts products.

• Development of domestic and international tourism sector. • e-Commerce and Internet are emerged as promissory distribution channels to market and sell the craft products.

Opportunities:

• Rising demand for handicraft products in developed countries such as USA, Canada, Britain, France, Germany, Italy etc. • Developing fashion industry requires handicrafts products. • Development of sectors like Retail, Real Estate that offers great requirements of handicrafts products.

• Development of domestic and international tourism sector. • e-Commerce and Internet are emerged as promissory distribution channels to market and sell the craft products.

FINDINGS &

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.