Indian Handicraft Industry

1. Indian Handicrafts Industry
Kumar Rajgeet

2. What are Handicrafts?
Handicrafts are mostly defined as “Items made by hand, often with the use of simple tools, and
are generally artistic and/or traditional in nature. They are also objects of utility and objects of
decoration.”
Classification
Kitchenware, garden ware, toys, office-ware, furniture and furnishings, accessories, decorative
items, tableware, bathroom accessories, gift & souvenir articles, house ware, wall décor, floor
covering and carpet, interiors & architonic.

3. Indian Handicraft
• India is one of the important suppliers of handicrafts to the world
market.
• The Indian handicrafts industry is highly labour intensive cottage
based industry and is decentralized.
• It is spread all over the country in rural and urban areas.
• It has high potential for employment.

4. • The export earnings from Indian handicrafts industry for the period
of 2013-14 amounted to US$12.3.
• Although exports of handicrafts appear to be sizeable, India’s share in
world imports is miniscule.
• It is a sector that is still not completely explored from the point of
view of hidden potential areas.

5. Major Centres
• Moradabad also known as the "Peetalnagari" (City of Brass)
• Saharanpur-wooden articles.
• Ferozabad-glass.
• Rajasthan offers the famous Jaipuri quilts, Bagru and Sanganer
printed textiles and wooden and wrought iron furniture from Jodhpur.
• Gujarat comes with embroidered articles from Kutch.
• Narsapur in Andhra Pradesh is famous for its Lace and Lace goods.
*This is only a small part of the total product range.

6. COUNTRY-WISE EXPORTS OF HANDICRAFTS
Art Metalwares U.S.A., Germany, U.K. & Italy
Wood Wares U.S.A., U.K., Germany & France
Hand Printed & Textiles & Scarves U.S.A., U.K. , Germany & Canada
Embroidered & Crochetted Goods U.S.A., Saudi Arabia, U.K., Germany
Shawls as Artwares Saudi Arabia, U.S.A. Japan & U.K
Zari & Zari goods U.K. U.S.A., Japan & Saudi Arabia
Imitation Jewellery U.S.A., U.K., Saudi Arabia & Germany
Miscellaneous Handicrafts U.S.A., Germany, U.K. & France

7. Value Adding Chain in Handicrafts
• Identification of market opportunities
• Prototype design and development / adaption and refinement
• Test marketing
• Upgrading equipping facilities
• Securing inputs
• Entrepreneurial hiring, training, managing
• Production, quality control and packaging
• Costing and pricing
• Physical distribution
• Export market development

8. SWOT Analysis of Indian Handicraft Industry
Strengths Weaknesses
• Abundant and cheap labour hence can compete on
price
• Low capital investment and high ratio of value
addition
• Aesthetic and functional qualities
• Wrapped in mist of antiquity
• Hand made and hence has few competitors
• Variety of products which are unique
• Exporters willing to handle small orders
• Increasing emphasis on product development and
design upgradation
• Inconsistent quality
• Inadequate market study and marketing strategy
• Lack of adequate infrastructure and
communication facilities
• Capacity to handle limited orders
• Untimely delivery schedule
• Unawareness of international standards by many
players in the market

9. Opportunities Threats
• Rising appreciation for handicrafts by consumers in
the developed countries
• Widespread novelty seeking
• Large discretionary income at disposal of consumer
from developed countries
• Growth in search made by retail chains in major
importing countries for suitable products and
reliable suppliers. Opportune for agencies to
promote marketing activities
• Use of e-commerce in direct marketing
Decline in India’s share due to:
• Better quality products produced by competitors
from Europe, South Africa, South Asia, etc.
• Better terms of trade by competing countries
• Consistent quality and increasing focus on R&D by
competing countries
• Better packaging
• Stricter international standards

10. Documentation in Trading of Handicrafts

11. Pre and Post Shipment documents
• Sample Invoice, Proforma, Packing Slip,
• Packing List , Invoice
• Shipping Instructions, Road Challan, Master Case Labels
• Certificate of Origin (GSP, DCC, PHD)
• Letter of Credit Monitoring
• Bill of Exchange/ Sight Draft
• Bank Realisation Certificate
• Sales & Pending Shipment Reports
• DBK & DEPB, Advance Licenses, Focus, Incentive calculation
• Pre & Post Shipment Profitability Analysis
• Different item description in Invoice & Packing List
for Buyer & Custom

12. Buyer and Vendor Purchase order processing
• Factory Order for Production department with photo
• Buyer Order Reports based upon Qty & Value
• Buyer Shipment & Payment Status
• Material Receipt & Debit Note generation
• Vendor Bill Reconciliation & Payment Control
• Vendor Order Control Reports

13. Store Inventory (Trading and Production)
• Material Incoming & Outgoing Registers
• Stock Ledger & Valuation
• Stock Allocation for Buyer Order & Indent Planning

14. Government Assistance

15. EPCH
• The Export Promotion Council for Handicrafts (EPCH) is the apex body
of the Government of India and works under the administrative
control of the Ministry of Textiles.
• EPCH was established under Companies Act in the year 1986-87 and
is a non-profit organisation.
• Its objective is 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 the country.

16. EPCH initiatives
• Aggressive international marketing project for the development and
promotion of north eastern crafts
• National centre for photo & picture framing technology at Saharanpur
and jodhpur
• Technology upgradation centre at Saharanpur
• Establishment of international lace trade centre
• Setting up of Moradabad resource centre

17. Handicrafts Organization
• All India Handicrafts Board
• State and Union Territories
• Central Corporations
• The Central Cottage Industries Corporation Pvt. Ltd.
• The All India Hand loom Fabrics Marketing Cooperative Society Ltd.

19. EXIM Bank
• The Export-Import (EXIM) Bank of India is the principal financial
institution in India for coordinating the working of institutions
engaged in financing export and import trade.
• It was established on January 1, 1982 for the purpose of financing,
facilitating and promoting foreign trade of India.
• The authorised capital of the EXIM Bank is Rs. 200 crore and paid up
capital is Rs. 100 crore, wholly subscribed by the Central
Government.

20. The main functions of the EXIM Bank are as
follows:
• (i) Financing of exports and imports of goods and services, not only of
India but also of the third world countries;
• (ii) Financing of exports and imports of machinery and equipment on
lease basis;
• (iii) Financing of joint ventures in foreign countries;
• (iv) Providing loans to Indian parties to enable them to contribute to
the share capital of joint ventures in foreign countries;

21. • (v) to undertake limited merchant banking functions such as
underwriting of stocks, shares, bonds or debentures of Indian
companies engaged in export or import; and
• (vi) To provide technical, administrative and financial assistance to
parties in connection with export and import.

23. India Expo Center & Mart
• The India Expo Center & Mart is aimed at enabling Indian exporters of
handicrafts products located in different parts of the country to
display their merchandise.
• It provides a convenient place for the overseas buyers to come and
source.
• The Infrastructure of eight exhibition halls with support facilities of
international standards at India Expo Center & Mart enables holding
of world class exhibition

24. • The location of Greater Noida Expressway is most appropriate. It is
easily accessible from the Delhi airport.
• It is anticipated that the India Expo Center will develop into a
wholesale markets for hand crafted life style products.
• The India Expo Center & Mart has now become the venue of Indian
Handicrafts & Gifts Fair held twice in the year in spring and autumn.
• More than 8500 buyers from all leading markets of the world visit the
Indian Handicrafts & Gifts Fair every time.

25. Conclusion
• The handicrafts industry has tremendous potential for growth in
world market as also in India. India has excellent craftsmanship
inherited over the generations.
• It has uniqueness of diverse culture, diverse raw material base.
• Many languishing regions have not been concentrated upon by
exporting community and require the support of the Government.
• There are many opportunities for expansion in the future.

27. Thank You