`Utilise growing demand for handicrafts'

By Our Special Correspondent

TIRUCHI, FEB.23 . Indian handicrafts have a constant growing demand in the foreign countries
and this market need to be further exploited with good quality, huge quantity and timely
execution of export order, the Assistant Director, Office of the Development Commissioner
(Handicrafts), Union Ministry of Textiles, A. M. Abdul Khader, said.

Delivering his inaugural address at the two-day seminar on `how to start exporting handicrafts
and documentation procedures,' organised by the Small Industries Product Promotion
Organisation (SIPPO) Limited here on Sunday, he said the export potential of handicraft
products was always more compared to other products from India. The country's export of
handicrafts stood at Rs. 8,343 crores last year, compared to Rs. 1,970 crores, recorded a decade
ago.

Though handicraft export industry faced stiff competition from countries like China, Taiwan,
Korea, Indonesia and Philippines, the export of the Indian handicrafts was still a promising field
because of its uniqueness in terms of traditional and historical popularity.

Referring to the favourable and conducive market for Indian handicrafts, Mr. Khader said
countries like USA, Germany, Britain, Italy, France, Japan, Australia and Saudi Arabia were the
major importers of Indian handicrafts. India accounted for 1.25 crore artisans producing
handicrafts worth about Rs. 30,000 crore, of which goods worth Rs.11,000 crores were exported.
The country's handicraft exports accounted for 37 per cent of the total production.

He said the people of the developed countries had a special affinity towards Indian carpets, hand
printed textiles, hand embroidered, tie and dye textiles, artistic metal products, bronze icons,
utility oriented brass items, have good demand in the foreign market.

Mr. Khader said eco-friendly handicraft products have taken a lead present. Hence the
handicrafts made of natural fibres are in good demand. This was one sector where the concerns
from Taiwan, Indonesia and Philippines were competing with the Indian firms, he said and called
upon the craftsmen to concentrate on bulk manufacture of the same.

The Member (south zone), Khadi and Village Industries Commission (KVIC), S. Rajagopal,
emphasised the need for taking special initiative to identify the proper export markets and
explained the precautions to be taken and procedures to be followed for retaining the same. As
there was good demand for group products, compared to single product, the craftsmen should
concentrate on them.

Mr. Rajagopal said the exporters should know the quality specifications and the specific
demands of the buyers.

The Foreign Trade Development Officer from the Joint Directorate of Foreign Trade, Banu, and
the Executive Officer of the Export Credit Guarantee Council, K. Rajendran, spoke.
According to the nodal officer of the SIPPO, Neelavalli, over 50 artisans from 20 districts were
participating in the seminar.

Indian Handicrafts and Gifts


India is one of the major
exporter and supplier of
handicrafts and gift products
to the world market. The
Indian handicrafts industry is
highly labor intensive and
decentralized, being spread
all across the country in rural
and urban areas. The sector is
considered as the second
sector after agriculture with
work on a part-time basis.
over 6 million artisans,
women and people from the
sections of society.
The present day handicraft
India is a perfect example of
between the traditional
modern techniques. The fast
demand for Indian handicraft
sector a full-fledged large
growing day by day.
History
The rich history of India’s
centuries offering a legacy of
everything - beauty, dignity,
comprehensive and ranges
modern handicrafts making
most popular crafts, include
sculpting, woodwork, hand-
embroidered and crocheted
carving and imitation
There is a myriad of art and
on social, economic and
of the sector in India owes
tradition of the past. Majority
continues to flourish due to
availability to the common
and global markets.
Today, some of the sectors
become full fledged
carpet weaving, traditional
» Chemical Industry
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» Indian Leather
» Indian Gifts & Crafts
» Plastic Industry
largest employment-generating
numerous artisans engaged in craft
The industry offers employment to
including a large number of
weaker
tradition of
assimilation
designs and
growing
and gifts products have made this
scale organized industry that is
craft tradition has evolved over the
Indian culture promising
form and style. The variety is
from age-old stone carvings to
use of glass flints and mirrors. The
metalware, earthenware, pottery,
printed textiles and scarves,
goods, shawls, zari products, stone
jewelry.
craft traditions in India that depend
regional factors. The present status
much to the rich crafts history and
of the crafts from the past
their utilitarian characteristics,
people and popularity in domestic
within the craft industry have even
industries in their own, like -
textile (Banarsi silk sari,
Chikankari etc), gem cutting and polishing, jewelry making, the world famous diamond cutting
and polishing industry, brassware, jute products, etc. The growth of these industries is due to
their ever-increasing demand and the popularity of Indian crafts in the domestic market and
overseas. Gems and jewelry, carpet making, metalware, leather products, jute products etc. are
some industries, which are growing rapidly.

Exports
Generally considered a cottage industry, Indian Handicrafts and Gifts
Industry has outgrown its image to evolve into a rapid growing industry
with a turnover from US $ 1.2 million to US$ 1.9 billion in the last decade.
There has been a consistent annual growth rate of more than 15 per cent
over a 10-year period, from 3.6% to a respectable 10% share in global
handicraft exports. In 2005-2006 the exports of Indian handicrafts has
shown an increase of US$ 298.87 million, i.e. the exports increases by
10.02% over the similar period during 2004-2005. Though India's share in international
handicrafts market is just about 2 %, the world handicrafts market is estimated to be of the order
of US $235 billion. The industry is expected to triple its export turnover to Rs. 39,000 crore by
2009-10 that in turn will also create around 20 lakh new job opportunities.

Top Ten Destinations of India's Export for Handicrafts

Ran 2000 - 2001 Value (In 2001 - 2002 Value (In 2002 - 2003 Value (In
Country Name
k Million US$) Million US$) Million US$)
1 USA 294.8517 219.176 324.6047
2 UK 61.6174 56.1987 79.1673
3 Germany 37.554 30.4357 47.2585
4 France 31.013 29.4103 37.5341
5 Netherlands 29.243 25.8394 37.3164
6 Spain 21.8287 19.0162 30.4608
7 Italy 27.9376 19.89 24.0536
8 UAE 14.6376 12.205 20.9196
9 Canada 15.2344 12.8124 17.6554
Belgium-
10 9.0019 9.5755 14.5125
Luxembourg
Source: DGCI&S

Export Data (Product Wise) 2006-07

According to the provisional data available, the export of handicrafts has
shown an increase of Rs. 2761.29 crores, from Rs.14, 526.85 to Rs.17,
288.14 crores (increase of 19.01% in rupees term). In dollar terms, the
export figures have shown an increase of US$ 528.70 millions, i.e. the
exports increased by 16.11% over the similar period during 2005 - 06.
Details are given below –
STATEMENT PRESENTING PROVISIONAL EXPORT FIGURES OF HANDICRAFTS
DURING THE PERIOD APRIL- MARCH 2006 - 07 COMPARED TO THE
CORRESPONDING PERIOD OF APRIL- MARCH 2005 - 2006.
INCREASE
US$ IN
RUPEES IN CR. (April- IN % INCREASE IN %
Items MILLIONS
March) OVER 2005- OVER 2005-06
(April-March)
06
INCREASE IN
2005-06 2006-07
% OVER 2005- 2006-07
*44.2546 *45.3607
06
Artmetal
3662.98 4135.06 12.89 827.90 911.60 10.14
Wares
Woodwares 853.06 1180.02 38.33 192.76 260.14 34.96
Handprinted
2053.70 2465.18 464.07 543.46
Textiles 20.04 17.11
& Scaraves 4711.45 5860.35 1064.62 1291.94
Embroidered
110.23 216.82 24.91 47.80
&
24.39 21.35
Crocheted
347.05 392.45 78.42 86.52
Goods
Shawls as
274.86 386.09 96.70 62.11 85.12 91.89
Artwares
Zari & Zari
2513.52 2652.17 13.08 567.97 584.68 10.33
Goods
Imitation 17288.1
14526.85 40.47 3282.56 3811.26 37.05
Jewelry 4
Misc.
    5.52     2.94
Handicrafts
Total 19.01 16.11

US$ at the rate of Major Importers of Indian Handicraft Products (2004-05) (Source – Export
Promotion Council for Handicrafts)
Products Exported
The items, which account for a major share of export turnover, include - art metalware,
woodware, hand-printed textiles, hand-knotted and embroidered textiles, leather goods,
stoneware, paintings and sculpture, jewelry and antique & collectibles.

With 26 states, 18 languages and more than 1500 dialects, the country offers an enormous range
of handicrafts from different states and regions. Major production centers are, in Uttar Pradesh -
Moradabad also known as the "Peetalnagari" (City of Brass), Saharanpur for its wooden articles,
Ferozabad for Glass. The North-Western state of Rajasthan is known for its Jaipuri quilts, Bagru
and Sanganer printed textiles and wooden and wrought iron furniture. The coastal state of
Gujarat offers famous embroidered articles from Kutch. Narsapur in Andhra Pradesh is known
for its Lace and Lace goods. But all this is only a small portion of total product range. The
country offers much more.

Country-Wise Export of Indian Crafts

Major buyers of Indian handicrafts are

U.S.A., Germany, U.K. &
Art Metalwares
Italy
   
U.S.A., U.K., Germany &
Wood Wares
France
   
Hand Printed & Textiles & U.S.A., U.K. , Germany &
Scarves Canada
Embroidered & Crocheted U.S.A., Saudi Arabia, U.K.,
Goods Germany
Saudi Arabia, U.S.A. Japan
Shawls as Artwares
& U.K
U.K. U.S.A., Japan & Saudi
Zari & Zari goods
Arabia
U.S.A., U.K., Saudi Arabia
Imitation Jewelry
& Germany
U.S.A., Germany, U.K. &
Miscellaneous Handicrafts
France

Art Concentration Areas

A comprehensive range of handicrafts and gifts products is made all over India. Although it is
quite difficult to limit a particular place for a specific craft, the following places are well known
for their unique crafts.
Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari,
Art Metalware
Thanjavur, Madras, Mandap, Beedar, Kerala, Jagadhari and Jaselmer
Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur,
Wooden Artwares Jagdalpur, Bangalore, Mysore, Chennapatna, Madras, Kerala &
Behrampur (WB)
Hand printed Textiles
Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer
and Scarves
Kutch (Gujarat), Jaisalmer, Baroda, Lucknow, Jodhpur, Agra, Amritsar,
Embroidered Goods
Kullu, Dharmshala / Chamba & Srinagar
Marble & Stone Craft Agra, Madras, Baster and Jodhpur
Terracotta Agra, Madras, Baster, and Jodhpur
Zari & Zari Goods Rajasthan, Madras and Baster
Papier Machine Craft Kashmir and Jaipur
Artistic Leather
lndore, Kolhapur and Shanti Niketan (WB)
Goods
Imitation Jewelry Delhi, Moradabad, Sambhal, Jaipur and Kohima (Tribal)

Future Prospects
The dynamism of handicrafts industry in India is unparalleled - be it the
traditional Indian arts and crafts or a customized version of an overseas art
form. Unlike in the past when the industry was battling to carve a niche in
the market, there is a great demand for Indian handicrafts today that is
being nurtured by different government and non-governmental
organizations.
The sector is economically important from the point of view of low capital investment, high ratio
of value addition, and high potential for export and foreign exchange earnings for the country.
The export earnings from Indian handicrafts industry for the period 1998-99 amounted to US$
1.2 billion.

The market is developing due to the huge demand of its products in terms of utility, cost and
aesthetics. To centralize and better organize the sector, the government has also initiated the
concept of 'Towns of Excellence' that are providing recognition to production areas where the
handicrafts have been traditionally developed. Today, there are 35 urban 'Haats' all across the
country, that allow for the allotment of built-up stalls to artisans on a fortnightly rotation basis at
nominal costs.

The industrial revolution and the increasing productivity had slowed down the growth and the
quality of arts and crafts, but for some decades now, the scenario has changed and machine-made
products no longer attract the people. Presently handicrafts are being considered as vocational
media and it is also opted for style statement and the leisure pursuit. Today, the crafts and
craftspeople have a vital role to play in modern India – not just as part of its cultural and
tradition, but as part of its economic future.

……………………………………………………………………………

Handicrafts represent a region's traditional art heritage and legacy of customary craft skills.
Metal ware, pottery, sculpting, textiles, stone crafts, jewelry and much more - India's rich
cultural ethnicity has made Indian handicraft products a rage in the national and international
markets.

Economically, the labor intensive Indian handicraft industry has evolved as a major contributor
to India's export revenues, with an industry growth rate of 20% pa. US and Europe together
account for over 65 per cent of the Indian handicrafts exports. The recession hit the Indian
handicrafts industry majorly, bringing down the handicraft exports revenue to half. Quoting in
figures, 2008-09 handicraft exports stood at US $ 1.79 billion. Export Promotion Council for
Handicrafts, hopes to recover the loss in the fiscal year 2009-10.

The major strengths of the Indian handicrafts are it's cheap and abundant labor, low capital
investment and the quintessential uniqueness of these crafts, since most of them are handmade.
All these characteristics give Indian handicrafts a competitive edge in terms of prices and
distinctiveness. Skilled Indian artisans have consistently adapted and evolved to successfully
meet demands of the still- growing industry. Considering the current scenario of the worldwide
handicraft industries, India needs greater technological infrastructure, innovation, better
distribution channels and consolidation of the various big and small artisans, craftsmen and
larger business units.

The Indian handicraft industry is concentrated in the rural and suburban areas and provides
employment to over six million artisans, most of them being women. Rising demand in the west,
prestige value attached to antique handicrafts and the emergence of e-commerce and Internet
have been instrumental in driving the growth of the Indian handicraft industry.

Associations and Organizations

Government Bodies associated with the development of Indian handicrafts and their export and
import.

Exim Policy
Know about the export import policy of the Government regarding the much in demand Indian
handicraft products.

Export Benefits
List of special drawback duty offered by government of India on Indian Handicraft products.

Export Promotion Councils

These bodies act as a link between the Indian craftsmen and foreign importers, providing a
common platform.

Foreign Import Offices

Addresses of foreign offices encouraging the import of handicrafts from other countries and a list
of the services offered by them.

Product Classification
Standard Industry classifications and Harmonization System Codes for proper categorization of
products as per international standards.

Trade Shows
Complete information on National and International trade shows on Indian gifts and handicrafts

Private Handicraft Promotion Associations

The rhythm of Indian art thrives, as people from different parts of India come together
celebrating the joy of Indian traditions.

SWOT ANALYSIS
Strengths:
1. Indian Handicrafts Industry has a diversified and potential market in domestic & international
platform.
2. It provides large product variety and range as it is full of diversified culture.
3. Industry is facilitated by diversified and supportive retail infrastructure acros the country.
4. Industry provides srvices to different market (Handicrafts, Textiles, Jwelry) bcaue of
diversified product range.
5. Labor rates are cheap and it results to competitive price.
6. Industry needs low capital investment.
Low barriers for new entry in market.
7. Industry provides potential sources of employment.
8. Products are high value added, and handicrafts have various applications.
9. It is the potential source of foreign revenue because of higher export.
10. Industry provides potential sources of employment.
11. Products are high value added, and handicrafts have various applications.
12. It is the potential source of foreign revenue because of higher export.

Weaknesses:
1. Industry is lacking with infrastructure and communication facilities.
2. There is unawareness among craftsmen about international requirements and market.
3. Lack of co-ordination between government bodies and private players.
4. Inadequate information of new technology and developments.
5. Inadequate information of current market trends.
6. There is lack of skilled labor in indutry.
Industry is still confined to rural areas and small cities and not able to reach untapped market.
7. There is lack of promotion of products.

Opportunities:
1. Emerging demand for handicrafts goods in developed countries such as USA, Canada, Britain,
France, Germany, Italy etc.
2. Rising demand and usage of handicrafts products in fashion industry.
3. Development of sectors like Retail, Real Estate that offers great requirements of handicrafts
products.
4. Developing of domestic and international tourism sector.
5. e-Commerce and Internet are emerged as promissory distribution channels to market and sell
the craft products.

Threats:
1. Competition in domestic market.
2. It is challenge to have balance between high demand and supply of products.
3. Quality products produced by competing countries like China, South Africa.
4. Competing countries are offering better Trade Terms .
5. Competing countries are offering better technological support and R&D facility in competing
countries.

Read more: http://www.articlesbase.com/art-articles/indian-handicrafts-industry-swot-analysis-

327228.html#ixzz13lqSjGHE
Under Creative Commons License: Attribution

…………………………………………………………
Achilles Heels of the Industry:

Despite of all the technological advancements

happening globally, there is still a lack of awareness
about it in this sector. The artisans do not have
awareness about the new technologies. They do not get
adequate details about the current market trends.
Further more; they lack information regarding
international requirements and market scenario. Hence
they are not able to commercialize their skills in the
right way. Though Indian made handicraft items have a
healthy demand in the global market, lack of adequate
infrastructure and communication facilities hinder the
marketing activities.

Moreover, there is very less co-ordination among government bodies, and private players. They
sector still remains under nourished with young people not much interested in this craftsmanship.
The industry is confined to small cities and rural areas with the market remaining untapped.

The Dark Phase:

There is no adequate balance between demand and supply. The industry faces a tough
competition with handicrafts from countries like China, and South Africa. The advanced
technology and R&D in the competitors countries favor them whereas; its absence in India
makes the industry to wobble behind. This has ultimately resulted in loss of skilled workmanship
in the sector.

Due to lack of support from the Handicrafts Development

Corporation, and the Government, many skilled artisans are
leaving the handicraft industry. The artisans feel that the
corporation is not interested in supporting them to market the
goods made by them. Almost 90% of the handicraft items seen
in the stalls of Handicraft Development Corporation are
machine made. Despite the funds offered under the Deen Dayal
Hathkargh Protsahan Yogana (DDHPY) scheme, for promoting
handicraft products, no steps have so far been taken for any
projects. Artisans believe that the corporation does not take adequate measures to provide raw
materials for their products, which they are selling through the corporation outlets in the past
years.

Existing company

Aporv is an interesting startup that brings hand made handicraft online enabling the artisans to
sell to a wider audience. An interesting part about Aporv is
that the company doesn’t decides on the product price and
leaves that for artisans themselves to judge.

Started by IT professionals, Aporv is an attempt to bring

the authentic handicraft to wider audience and the team
believes in a bit of ‘story telling’ in order to sell the
product.

While one would say whats the big deal about a ‘just another ecommerce play’, one needs to
understand that this a market where there is a strong demand-supply gap, owing to the distributed
nature of the industry.

Read on our interview with the team to understand the concept and the story so far.
a. Tell us about your background and prior experience.

10+ years of corporate life with experience in India, US, China, Taiwan and in my last corporate
job I was Sales Director with one of the IT companies in US. I am also the Founder of BITS.aid
a volunteering arm of my alma mater, BITS Pilani which gave me exposure to the social sector.
Having said that Aporv (www.aporv.com) is a culmination of my interest in creativity, social
impact and an opportunity to fill a hiatus I see in the Indian Handicrafts sector.

b. What made you start an *off-beat* ecommerce business like this? What was the trigger?

As I said earlier, it is a culmination of interest and a business opportunity. There are couple of
things that triggered this unique model : Aporv (Aporv means Unique in Sanskrit)

1. Our own search to find Indian Handicrafts which are authentic, unique and has a historic
significance.
2. My own interest in creativity and looking for new and unique products.
3. Understanding the need and trying to fill that gap.
4. Lastly and most importantly, making a Social Impact.

After agriculture, handicraft is the second largest occupation in India with more than 23 million
people in this sector. Every 7-10 years 10% of these artisans leave their jobs looking for better
opportunities. If this continues the Indian Handicrafts will be lost in the next few decades. This is
when we decided to take this situation head on and create a unique ‘aporv’ platform. We are
bringing 12 differentiations in the sector with our business model, some are targeted towards the
uplift of the Indian Handicraft and some towards our appreciators. We believe in bringing value
to our appreciators through various means like,

1. Story rather than the product – Our fundamental belief is that given an opportunity we all
love to make an educated buy. That’s exactly what we are providing to our appreciators.
We bring to our appreciators the story on how the product is made, where it is made and
the history of the products which add intrinsic value to the product and provides them the
tools to make an educated buy.
2. Authentic products – Our own search led to the conclusion that this is one of the most
important point to tackle.
3. Unique artifacts from across India – Where does one go to find Unique Indian
Handicrafts which have historic significance. Our answer is www.aporv.com. We bring
to our appreciators artifacts from all over India.
4. Open Evaluation – We are trying to revolutionize this sector by opening up the artifacts
evaluation by everyone and we call it ‘Open evaluation’. Each artifact on our site can be
evaluated on 4 parameters – Skill/ History/ Aesthetics/ Uniqueness.
5. Premium Service – We all would love to get a service that we can think of. Aporv aims to
provide you just that. We have a policy if you have an unanswered query for 72 working
hrs the mail gets directed to the CEO. Yes, we are that serious with our service.
6. Returns – To build consumer confidence we currently have “No Questions Asked 7 day
return Policy” We believe that you should be satisfied with our products else we will be
glad to take it back, No questions asked.
c. How do you source inventory? You mentioned that you don’t decide pricing- how does
this happens?

Currently we work with individual artisans, Organizations, NGO and SHG’s. Yes, we don’t
decide on the pricing with individual artisans. One of our aim is to make these individual artisans
entrepreneurs. We let them price their product, the product at which they would like to provide it
to Aporv. We also follow fair trade policies and partner with organizations which follow the
same. Going forward to make a bigger impact we also plan to invest a percentage of our revenue
back to this sector.