Handicrafts Industry in India

From the beginning of time, Indians have been very skilled in Creative arts and Handicrafts. There are varied handicrafts in India that are unique only to India and our Artisans. The Handicrafts have always been associated with Tourism and popular with Tourists. But in recent time with the support by the Indian Government to the Artisans these are gaining visibility and prominence. There is demand from people for their Home décor to Offices and also Tourists who visit India. The uniqueness of the products ensures a good price especially with Tourists who are willing to spend on these. The increase in foreign travelers to India also ensures that there is a good potential for this market.The online e-commerce platforms also make the sale of Handicrafts easy and accessible to people all over the world. It is also an important source of huge exports and potential foreign exchange. Handicrafts refer to a wide range of textiles, embroidery pieces, ceramics, artisanry, jewelry, etc., created by hand or by using easy tools instead of machines. These unique items represent the culture, heritage, and tradition of a particular region and have different social, aesthetic, and religious values. Numerous traditional techniques are applied to make handicrafts, including painting, hand dyeing, handloom weaving, woodblock, etc. In recent years, handicrafts have gained immense popularity as they require low capital investments, produce foreign exchange revenue, and offer employment opportunities. Owing to the aforementioned factors, handicraft products play a vital role in the overall growth of an economy and are expected to uplift the demand for handcrafted products in the coming years.


INTRODUCTION INDIAN TEXTILE INDUSTRY
The Indian textile industry is one of the largest in the world with a large unmatched raw material base and manufacturing strength across the value chain.India's textiles and clothing industry is one of the mainstays of the national economy.The Handicrafts sector is categorized under the Ministry of Textiles."Handicrafts"as defined by the Ministry of Textiles are goods predominantly made by hand even though some tools or machinery may also have been used in the process; such goods are graced with visual appeal in the nature of ornamentation of in-lay work or some similar work of a substantial nature; possess distinctive features, which can be aesthetic, artistic, ethnic or culturally attached and are amply different from mechanically produced goods of similar utility" (as per GST Council).

HANDICRAFTS SECTOR:
The Handicrafts Sector plays a significant & important role in the country's economy.It provides employment to a vast segment of craft persons in rural & semi urban areas and generates substantial foreign exchange for the country, while preserving its cultural heritage.

Given below are different Handicraft Categories:
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.
The Handicraft sector has, however, suffered a lot due to being an unorganized sector, with constraints of lack of education, low capital, poor exposure to new technologies, absence of market intelligence and a poor institutional framework.The sector is estimated to employ 68.86 lakh artisans, out of which 30.25 lakhs are male and 38.61 lakhs are female artisans.

TEXTILE INDUSTRY EXPORTS:
The Indian textile industry contributes approximately 15% to the country's export earnings.In FY22, textiles, handicrafts and apparel accounted for 10.6% of India's total exports.Barring a decline in FY20 and FY21, exports have risen steadily since FY16.Textile and apparel exports rose to their highest level in FY22, reaching US$ 44.4 billion and growing 41% over FY21 and 26% over FY20.Exports have increased 13.9% since FY16.In FY22, the US was the top export destination, accounting for 27% of textile exports, followed by the EU (18%) and Bangladesh (12%).

EXPORT PROMOTION COUNCILS:
There

Activities of Export Promotion Councils
a) Participation international fairs/ exhibitions and standalone shows in India and overseas markets to showcase Indian textiles to enhance exports and access new markets.b) Publishing Newsletter by respective EPCs.c) Providing latest information on markets, policy developments/initiatives, news relating to exports, Government Notifications, overseas trade inquiries, fashion & technology developments.d) Setting targets and goals for current as well as short term/long term future.Further they are involved in formulating strategy for fulfilment of export goals.

EXPORT PROMOTION COUNCIL FOR HANDICRAFTS AND HANDICRAFT EXPORTS:
Export Promotion Council for Handicrafts (EPCH) was established under Companies Act in the year 1986-87 and is a non-profit organisation, with an object to promote, support, protect, maintain and increase the export of handicrafts.It is an apex body of handicrafts exporters for promotion of exports of Handicrafts from country and projecting India's image abroad as a reliable supplier of high quality of handicrafts goods & services and ensured various measures keeping in view of observance of international standards and specification.The Council has created necessary infrastructure as well as marketing and information facilities, which are availed both by the member exporters and importers.

HANDICRAFT AND THE UNION BUDGET 2023:
To support our craftspeople, the Indian Government announced a package of assistance for artisans and craftspeople in the Union Budget 2023-24.
a) The newly conceptualised Pradhan Mantri Vishwakarma Kaushal Samman (PM-VIKAS) scheme will enable the country's artisans to improve the quality, scale, and reach of their products, integrating them with the Micro, Small and Medium-scale Enterprises (MSME) value chain.
b) The components of the scheme will include not only financial support but also access to advanced skill training, knowledge of modern digital techniques and efficient green technologies, brand promotion, linkage with local and global markets, digital payments, and social security.c) This will greatly benefit the Scheduled Castes, Scheduled Tribes, OBCs, women and people belonging to the weaker sections.

CONCLUSION:
The Handicrafts Industry has a huge Export potential.As the Government extends full support to the Artisans and encourages growth of this Industry, it is also a time to review the foreign market scenario.China faced a setback post Covid and now it may be a good time to tap the markets where products from China had prevalence and also establish presence in countries where we don't have export much like Brazil, Argentina, Chile etc. for example.
Our Artisans can also benefit with support for quality cost effective raw material, tax benefits, marketing support etc. to ensure that the Indian Handicrafts garner more market in new foreign markets and also have a wider reach.
There can also be incentives linked to the production which can help grow the industry.
The export of handicraft products including via e-commerce platforms has increased to Rs.33253 crore in the financial year 2021-22 from Rs 25,679 crore in the previous financial year.The product categories leading in exports for 2021-22 were Woodware products worth Rs.9080 crore, followed by Embroidered and Crochetted goods amounting to Rs.5,340 crore, Art Metalwares worth Rs.4,152 crore and Handprinted textiles worth Rs.3,089 crore etc.The Exports of Handicraft items as per the EPCH is given below: USA is one of the major importers of Handicrafts from India at a 42.46% of the total share of Indian Handicraft Exports.The Country wise Market Share and Exports value is given below for "Art Metalwares".USA is the leading importer at 34.04% and Rs.1413.55Crores in 2021-22.• Email: editor@ijfmr.comIJFMR22051659 Volume 4, Issue 5, September-October 2022 7 The Country wise Market Share and Exports value is given below for "Woodwares".USA is the leading importer at 49.03% and Rs.4452.53Crores in 2021-22.The Country wise Market Share and Exports value is given below for "Handprinted Textiles".UAE is the second leading importer at 31.57% and Rs.975.52 Crores in 2021-22.Other countries are grouped as the leading importer in this category at 32.10% and Rs.991.75Crores in 2021-22.The Country wise Market Share and Exports value is given below for "Embroidered and Crocheted Goods".USA is the leading importer at 53.67% and Rs.2866.50Crores in 2021-22.
The Indian Toy Fair 2021 was organized virtually on 27.02.2021.1178 exhibitors participated in the fair held virtually with the involvement of 8 Ministries of Government of India. .The Office of DC (Handicrafts) has conducted 670 chaupals across the country with the view to sensitize the cluster artisans about the schemes of Office of DC Handicrafts,shramdaan, to create awareness about benefits of e-com portal/ GeM portal registration, distribution of Pehchan ID/ on-spot enrollment of new artisans for Pehchan ID, benefits of Pehchan ID, BimaYojna, Mudra Loan, GI registration process, Handicrafts Helpline Centre.The chaupals will have participation of approximately 43550 artisans/member of SHGs and their children creating awareness including problems associated with pandemic.
2. Two Craft Tourism Villages at Amer (Rajasthan) and Kovalam (Kerala) have been sanctionedfor setting up of Crafts Tourism Village, under Infrastructure and Technology Development scheme.3.TheOffice of DC (Handicrafts) has provided various activities to these Adopted clusters, Toy clusters and identified clusters for Producer Company with a view for development of artisans through interventions such as 337 domestic marketing events have been sanctioned wherein 24280 artisans/member of SHGs have participated, 187 design development programme have been sanctioned in which 7530 artisans/member of SHGs have participated and 15 state level and regional level seminar with 1500 participants have been conducted.A Virtual Toy fair was organized during 27th February 2021 to 4th March 2021 in which 1074 exhibitors participated.4 are eleven Exports Promotion Councils (EPCs) representing various segments of the textiles & apparel value chain, viz.fiber, yarn, fabric, readymade garments of cotton, silk, jute, wool etc.These Councils work in close cooperation with the Ministry of Textiles and other Ministries to promote growth and export of their respective products/ sectors in global markets.

The Country wise Market Share and Exports value is given below for "Shawls as Artwares". UAE is the leading importer at 72.78% and Rs.3.77 Crores in 2021-22. The Country wise Market Share and Exports value is given below for "Zari and Zari Goods". UAE is the second leading importer at 14.71% and Rs.10.21 Crores in 2021-22. Other countries are grouped as the leading importer in this category at 76.40% and Rs.53.02 Crores in 2021-22. The Country wise Market Share and Exports value is given below for "Imitation Jewellery". USA is the second leading importer at 30.79% and Rs.473.85 Crores in 2021-22. Other countries are grouped as the leading importer in this category at 37.32% and Rs.574.35 Crores in 2021-22. The Country wise Market Share and Exports value is given below for "Agarbatties and Attars". USA is the second leading importer at 16.77% and Rs.239.38 Crores in 2021-22. Other countries are grouped as the leading importer in this category at 44.09% and Rs.629.37 Crores in 2021-22. The Country wise Market Share and Exports value is given below for "Miscellaneous Handicrafts". USA is the leading importer at 46.52% and Rs.3976.25 Crores in 2021-22.
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