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NO-10810337

Handicrafts Introduction

Handicrafts are unique expressions and represent a culture, tradition and heritage of a
country. The Handicraft Industry is one of the important productive sector. Various attempts
have been made to define this broad and diversified industry. The following definition strives
to cover diversity and complexity of Handicraft Industry.

Defining Handicrafts:

Definition According to United Nations Educational, Scientific and Cultural

Organization/Information Technology Community (UNESCO/ITC) International
Symposiumon “Crafts and the International Market: Trade and Customs Codification”,
Manila, Philippines, October 1997:

Handicrafts can be defined as products which are produced either completely by hand or with
the help of tools. Mechanical tools may be used as long as the direct manual contribution of
the artisan remains the most substantial component of the finished product. 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.

Definition according to Govt. of India:

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

The Importance of Handicrafts:

• The Cultural Importance:

Handicrafts play very important role in representing the culture and traditions of any
country or region. Handicrafts are a substantial medium to preserve of rich traditional
art, heritage and culture, traditional skills and talents which are associated with
people’s lifestyle and history.
• The Economic Importance:
Handicrafts are hugely important in terms of economic development. They provide
ample opportunities for employment even with low capital investments and become a
prominent medium for foreign earnings.
Handicrafts:An Overview

India is a country of rich culture, history and traditions. India is one of the major producer
and supplier of Handicrafts products in the world. India has been major producer and supplier
of handicrafts products since very long time. Before the industrial development, this art and
industry was a potential economic advantage for the country.

During recent years, the importance of handicrafts has been surged due to their cultural and
financial values. The small scale industries - including handicrafts can play a major role in
the development of the economy of both developed and the developing countries equally. The
90-95% of the total industrial products of the world are produced in small workshops run by
less than 100 people. For instance, Japan, which is at the peak of the economic development,
has considered 84% of the its industries as small and medium scale industries. In countries
such as India and China, handicrafts are as high as the mechanized products in quality and
volume, and are a major source of their foreign earnings. These countries are focusing on the
development of handicraft industry, in order to strengthen the economy.

The Indian handicrafts industry is highly labor intensive, cottage based and decentralized
industry. The industry is spread all over the country mainly in rural and urban areas. Most of
the manufacturing units are located in rural and small towns, and there is huge market
potential in all Indian cities and abroad. Handicraft industry is a major source of income for
rural communities employing over six million artisans including a large number of women
and people belonging to the weaker sections of the society.

The Handicraft sector is highly creative sector and produces large variety of crafts products.
This industry is localized segment of the domestic and international market. In India the
production of craft products are done on both large and small scale. Because of low capital
investment people can start their business on small scale. Through this flexibility the demand
and supply can be managed.

The Handicraft industry is a major source of income for rural communities and provides
ample employment opportunities to over 63.81 lakh artisans, which include a large number of
women and people belonging to the weaker sections of the society.

Though Indian Handicraft industry is considered a cottage industry, but it has evolved as one
of the major revenue generator over the years. There has been consistent growth of 20% over
few years and the industry has evolved as one of the major contributor for export and foreign
revenue generation.

The exports of Handicraft Goods during 2005-06 were Rs. 15,616 crores and upto the
January 2007 it was Rs. 16,117.38 crores. For the growth and development of the sector
Indian Govt. has launched following schemes:

• Baba Sahab Ambedkar Hastshilp Yojna

• Design and Technical Upgradation Scheme
• Marketing & Support Services Scheme
• Export Promotion Scheme
• Bima Yojna for Handicraft Artisans
• Credit Guarantee Scheme
• Gandhi Shilp Bazaar Scheme
There is huge demand of Indian Handicrafts Products in domestic & international market. It
is estimated that Handicraft Industry in India would grow with rapid rate in future and
contributes its share towards economic development

Though Indian Handicraft industry is considered a cottage industry, but it has evolved as one
of the major revenue generator over the years. There has been consistent growth of 15% over
few years and the industry has evolved as one of the major contributor for export and foreign
revenue generation.

There is huge demand for the Indian Handicraft products in both national and international
market. To match the demand and supply with quality, there is need to have greater
technological support and innovativeness with the uniqueness in industry.

India Handicraft Industry

The concept of Indian Handicrafts has emerged from one of the oldest civilizations called
the Harrappan Civilization and the Indus Valley Civilization. The exclusive items carved
by the India Handicraft Industry comprise of vast cultural and ethnic diversity that has
imbibed an array of unique themes, techniques, and crafts. India Handicraft Industry has
been globally popularized as the rich and cultural heritage of India for its unique appeal.
Handicrafts of India use brass, metal, wood, stone, and beads to carve its products ranging
from masterpieces to plain household items.

Paintings, furniture, sculptures, artificial jewelry, animal figures, figurines of deities and
idols, baskets, and many more items have been complimented as the pride of India.

Besides, trading in the local markets, Indian handicrafts are also exported across the globe.
Each work of art reflects the adroitness and emotions of the craftsmen which have made
the work more close to heart apart from being an exclusive show piece.

To know more about various types of India Handicraft Industry please browse the
following links:

India Spinning Industry India Weaving Industry

India Pottery Industry India Metalworks Industry
India Woodwork Industry

India Spinning Industry

India Spinning Industry has gone from strength to strength since a very long time now
as it was the hub of cotton manufacturing. Cotton is not only consumed to the highest
extent in India but it has also become one of the most profitable textiles in the export
industry.
 Spinning in India can be classified into 2 categories: medium and long staple. But there
was a shortfall in the ‘extra-long’ category that continued for many years. There was a
massive downfall in the cotton spinning in India during 2004-2005. The production rate of
cotton was about 4 lakh bales that was less by 5 lakh bales from the required rate which
was 9 lakh bales. Mr. P. D. Patodia, the Chairman of the Standing Committee on Cotton,
CITI-CDRA said that the manufacturing of cotton will rise to 11-12 lakh bales in 2010.

The present downfall in the cotton production has witnessed a 50% increase in the price of
Indian varieties of ELS, which is detrimental for the spinning industry in India. Spinning
mills require domestic accessibility of ELS cotton in increased quantity and of better fiber
qualities.

To survive this downfall in the cotton trade which is a highly profitable textile in the India
Spinning Industry, CITI-CDRA is conducting a conference with various research
organizations such as CICR (Nagpur), JNKVV (Khandwa), UAS (Dharwad), and
Regional Textile Mills' Association in R&D activities. It conducted a discussion
pertaining to the development of new varieties of seeds and adopting the advanced
procedure of cultivation which will add to the profit in the cotton textile sector of the
spinning industry. The most important and efficient step towards the resurgence of cotton
manufacturing would be to develop the ELS varieties with lesser duration crops and yield
to cost-effectiveness and consistency in cultivation. This will not only motivate the
farmers but will also make them stick to the desired sector of cotton crop.

The yarn spinning industry covers almost 25 percent of the total industrial production of
one of the world's 10 largest economies. Trends are reviewed every year in accordance
with the need and fashion. An elaborate and detailed assessment is made on various
sectors of the yarn spinning such as, production, consumption, and materials. The
legislative and the political consequences are also reviewed at the same time. In addition
to it, other areas that are being reviewed in the yarn spinning sector are exports, imports,
prices, advertising, and sales promotion patterns.

Some of the popular companies engaged in the India Spinning Industry are listed below:

• Bhilwara Spinners Ltd. (LNG Group) – polyester, viscose, wool-blended fabrics

and high-end products like lycra and linen. BSL Suitings and Mayur Suitings are
the two brands under Bhilwara Spinners Ltd.

• Nitin Spinners Ltd. - manufactures single and multi-fold yarns in the range from
Ne 4 to Ne 40 appropriate for various applications such as Knitted Fabrics, Woven
Fabrics, Terry Towels, Denims, Furnishing Fabrics, carpets and other Industrial
Fabrics.

• Sangam (India) Ltd. (Sangam Group of Companies) – Largest producer of dyed

yarn in India with a capacity of 64032 spindles in one location.

• Ajay Group of Industries – Manufacturer and seller of polyester viscose, polyester

woolen and uniform fabrics.

The Spinning Industry in India is on set to hit the global market with other fabrics as well
like the cotton textiles with its enthusiasm and consistency in work. It has already reached
a phenomenal status in India by beating the obstacles that caused a downfall since past
few years and is now on its way to cover a wider area in the spinning sector.

India Weaving Industry

India Weaving Industry is one of the most significant industries in Indian economy. In
2004, the Textile government officials conducted a program for the advancement of the
suburbanized powerloom sector.

One of the steps taken for it is the alteration of the main instrument called TUFS used in the
weaving sector of India. The second hand machines used for weaving are likely to be replaced
with more modernized ones. This will enable the beneficiary to have its take on the 12 percent
subsidy in combination with the credit. This modification is implemented by the Powerloom
Service Centers that are being modernized to facilitate this alteration. A group of 16 leading
powerloom clusters have been given the responsibility to work together for the modernization
of Indian powerloom sector. Besides, the center had also decided upon the setting up of hi-
tech weaving mills and unified textile mills in India for the small scale weavers.

Weaving is an ancient handicraft and has several categories, some of which are as follows:

• Silk weaving
• Cotton fabric weaving
• Wool weaving
• Shawl weaving
• Carpet weaving

Weaving in India has been setting the trend for the past hundreds of years. Before it was hand
weaving and now various machineries have been implemented for a quicker and more
advanced production of textiles. The North-eastern part of India is famous for weaving of
baskets and mats. These are designed in various styles. Border weaving in baskets is a
specialized style which is again classifies under three commonly used styles, namely, tree
strand warp border, simple wrapped border and fastened twine. Functional baskets are also
weaved largely in the Southern part of India. 'Kohari' basket is one such example which is
weaved to provide the facility of water drainage while washing rice or fish in the basket.

Manipur, a state in India weaves all kinds of baskets. Bengal also weaves a wide variety of
baskets in different styles. Mat weaving is also popularly practiced in Bengal. Mat weaving a
popular Indian handicraft in Pondicherry, a state in India. Mat weaving follows several
designs such as horizontal and vertical stripes and also floral ones. Sugar cane and bamboo
are used as materials for weaving of mats. The traditional weaving art is still followed by
many states in India such as Himachal Pradesh and Meghalaya.

Shawl weaving is one of the most eminent handicrafts that is enormously practiced in India
Weaving Industry and are not only sold all over India but also exported across the globe. Few
variations in shawl weaving are as follows:
 • Kashmiri Shawls
• Pashmina
• Shahtoosh
• Jamawar
• Kullu Shawls
• Dhabla

Carpet weaving industry is one of the most leading export oriented handicraft industry in
India. There is a great demand for the expensive silk carpets from Kashmir in the traditional
households in India. Woolen and non-woolen carpets are also highly adored in various homes
in India.

These are some of the popular weaving mills in India:

• Gurupal Silk Mills

• Naik Weaving Mill
• Nilesh Silk Mills
• Potabatti Weaving Mill
• Rajasthan Spinning and Weaving Mills Ltd.
• Sanjay Weaving Mills
• Santigo Textile Mills
• Someshwar Industries

India Weaving Industry is expected to do better with the setting up of automatic air-jet or
water-jet looms which are of vintage kind and have a life span of 10 to 15 years. A series of
progressive actions also are to be implemented for the betterment of the weaving pattern in
India soon.
Indian Pottery Industry

Indian Pottery Industry has its origins in the earliest era of civilization. Tradition of pottery
in India is an age-old handicraft which was claimed to be the expression of human emotions
at the beginning.

Indian Pottery Industry speaks volumes about the culture, traditions, architecture, and in-built
talent of Indian artisans who have manufactured innumerable pottery pieces across the length
and breath of the country. This is one of the most sensual arts in the Indian handicraft
industry.

Indian Pottery Industry came into existence with the Indus Valley Civilization and the
artwork has been continuing in various areas such as pottery, earthenware, and porcelain for
ages. Pottery and earthenware are utilitarian and also decorative while porcelain and studio
pottery belong to the sphere of art. Pottery making are both handmade and wheel-made that is
practiced all over India. Ever since the Harappan Civilization, pottery making in India has
been a significant craft and the potters were always esteemed at that time. They were the best
masters of their trade. Seals and grains and water are always supplied in lumps so as to
facilitate the efficient use of it while making pottery.
Potteries in India are called as the 'lyric of handicrafts' because of its lyrical and universal
charm. It is an amalgamation of concept, design and execution. The making of Brahma is one
of the most esteemed legends in Indian Pottery Industry.

The potteries are of various kinds which are listed below:

• The common earthenware

• Kullar (cup-like container)
• Lamps for Diwali
• Toys for Dussehera
• Pots for seedling at Sankranti
• ainted pots for marriages

Karigari Pottery

• Ashtrays
• Flower vases
• Tea sets
• Paper weights
• Decorative animal figures

Blue Pottery is one of the most famous of its kinds in the Indian Pottery Industry. Delhi is
famous for Blue Pottery in India. Such a distinctive name is entitled to the pottery so as to
highlight its eye-catching outlook and differentiate it from other potteries. The specialty in
Blue Pottery is that, a Persian blue dye is used to color the clay from which the potteries are
made. This is the exclusive attribute of Blue Potteries it is also equally famous in Jaipur, a
state in India. Some of these potteries are transparent and are adorned with animal and bird
themes. The Jaipur Blue Potteries are made of Egyptian paste and are kept at a very low
temperature after it is made.

Religion has also made its presence in the Indian Pottery Industry with the making potteries
of various deities and idols of worship. These are categorized under 3 heads:

• Figurines of Divinities
• Ceremonial Pottery
• Votive Offerings

Today, in the villages of India, around 15 lakhs of potters are trading their talent and about
95% of them are involved in traditional red or local clay pottery work. With this
innovativeness and hard work combined with enthusiasm, Indian Pottery Industry will keep
on ruling not only its own country but also the globe.
Indian Metalworks Industry

Metal work is an age-old tradition in India. Indian Metalworks Industry has been reigning
successfully since last 5000 years from now. The beautiful image of the dancing girl from
Mohanjodaro is one of the most outstanding works of the Indian Metalworks Industry.
Metal works in India had used a wide array of metals, such as, iron, copper, silver, and alloys
like bronze, bell metal, white metal, and etc to manufacture items like pots, pan, utensils,
photo frames, figurines of deities, mythological characters and animals.

Indian Metalworks Industry has reached the level of excellence in craftsmanship with its
exclusive works. One of such example is the iron pillar at Mehrauli (Delhi) which belongs to
the Mauryan. The craftsmen during Chola period mastered at bronze sculptures.

Traditional vessels of iron and brass are the specialty of Ladakh in Kashmir. Kashmir is also
well-known for other metal works, especially the richly graven traditional household items
such as, bowls, samovars, plates and trays. In 'Naqasi', epicurean floral and calligraphic
designs are embossed on copper and silver pieces. Figurines of deities and household utensils
are some popular metal works in Banaras.

< A nomadic tribe called Godiya Lohar in Rajasthan crafts iron utensils for regular use and
those who mastered in craftsmanship makes idols, lamps, and curios. Jaipur prides its
craftsmanship in brass engraving and lacquering. Items carved out of these metals are photo
frames, bowls, plates, boxes, and etc. The art of Koftagari or damascening work is is
practiced at Alwar. Other states that bears fame for beautiful and ethnic metal works are
Madhya Pradesh, Andhra Pradesh, Orissa and Tamil Nadu.

Indian Metalworks Industry is growing at leaps and bounds in the steel manufacturing with an
installation capacity of 36.12 million tonnes. Ore miners is one of the most well-established
sector in this industry. Few companies that are engaged in iron mining are National Mineral
Development Corporation, Kudremukh Iron Ore Co., and Essel Mining & Industries Ltd.
India is also quite well-known for manufacturing coal based sponge iron. It has occupied 15
percent of the global output and Jindal Steel & Power Ltd. is the largest producer of the same
in India with an installation capacity of 650,000 TPA.

Flat metal products are highly manufactured by SAIL, Tata Steel, Ispat Industries, Jindal
Group of Industries, and Uttam Steel and Bhushan Steel.

Indian Metalworks Industry has acquired a commendable status not only in India but also in
foreign states by selling its unique products in the local as well as in the global market.
India Woodwork Industry

India Woodwork Industry is one of the fastest growing industries in India's economy.
India possesses around 100,000 registered woodware units and more than 200,000 artisans
along with countless other woodworking related units in the sector. Wood has always been
a major part of Indian handicrafts and various beautiful things are crafted out of it. India
takes pride in manufacturing exquisite and handsome wooden handicrafts in diverse
motifs.

The wooden handicraft of India is draped with a vast cultural and ethnic diversity which is
applied to a range of themes, techniques and crafts. These wooden handicrafts are unique
in their own style and are claimed to be an absolute personification of the Indian heritage.
India Woodwork Industry has not only specialized in serving architectural purpose but
also manufactures furniture both in traditional as well as ultramodern style.
 In the rural areas of India, furniture and other household utensils are carved out of wood in
different shapes and styles. These simple objects are so uniquely blend that they in no way
look like daily use stuffs. Animal figures are also an excellent example of India's ethnic
woodwork. These wide ranging exclusive styles adopted by the India woodwork industry
to carve out various stupefying objects are prepared in different parts of India. Some of the
most well-known states of India involved in woodwork are as follows:

• Gujarat - Famous for woodwork in carved chests, almirahs, and wooden swings.
The wooden swings vary from plain Hewn wood to lavishly embellished ones.
There is also a tradition of embedding indigenously made gold, silver, and bronze
hues on wood in a place called Sankheda village in Gujarat. Surat, another place in
Gujarat, is well-known for its marquetry-work which is called as 'Sadeli' by local
people.

• Kashmir- Famous for its exclusive Kashmir houseboat made out of a specially
mollified wood that does not soak in water. Also, the houses in Kashmir are made
of wood with latticework windows and geometrically patterned ceilings.
Hoshiarpur (Punjab) - Gained immense popularity for carving inlaying ivory
which is now replaced with plastic to cut down on the cost. Wooden furniture,
trays, and mirror frames are usually crafted using intricate designs that were
claimed to be the royal patronage ages back.

• Saharanpur (U.P) - The leading place for commercial purposes. Sheesham and
Teak are the chief woods used for manufacturing traditional as well as
contemporary designed products-screens, cigarette boxes, tables, trivets, bookends,
and so on. Of late, Saharanpur is dealing with wood seasoning only.

• Kerala - Specializes in arena handicrafts that along with representing their customs
and beliefs also portray their spiritual values and emotions.

• Other areas - West Bengal, Bihar, Orissa and Andhra Pradesh are also engaged in
carving out various uniquely designed items out of wood.

India Woodwork Industry uses various kinds of woods, for example, Walnut, Sandalwood,
Teak, Sheesham, Deodar, Ebony, Redwood, Rosewood, Red, Cedar, Sal, and many more.
Recently, embedding of brass wires (Tarkashi) has gained lot of attention worldwide.
India has set up over 3,000 woodworking units and the number is increasing with the
passage of time.

Handicraft Exports
Handicraft Industry has evolved as one of the major contributors for Export and foreign
earnings:-

• Exports of handicrafts including hand knitted carpets during 2005-06 were

Rs.13412.92 Crore.
• Export items- Art Metal wares, Wood wares, Hand printed textiles, Embroidered and
Crocheted goods, Shawls as art wares, Zari goods, Imitation jewelry, Carpets, Leather
products, Jute products, Paintings, Bamboo products, Earthen ware, Marble Sculpture,
Bronze Sculpture etc.
• India's major export markets are USA, Germany, UK, France and Japan, Saudi
Arabia, Canada, and Italy etc.

(Rs. in Crores) US $ Million

 Handicrafts Policies
Indian Handicraft Industry contributes very important role in Indian economy. For the proper
functioning and operation of industry it is very essential to have some policies and regulation
in place. In India, the Ministry Of Textile is responsible for the formulation of policy,
planning, development, export promotion and regulation of the Handicraft Industry. There are
several other bodies and organizations which help to formulate and execute these policies. All
policies should be implemented for the greater development of the whole industry so that it
can help to strengthen the economy.

Industrial Policy:

• There are no restrictions regarding location for establishing manufacturing units.

• All producers of handicrafts are exempt from obtaining Industrial License to
manufacture. 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. No further approval is required.

Trade Policy:

• Handicraft products fall under the ITC (HS) code 97.

• Paintings, drawings and paintings, domestic articles of wood etc. which come under
9701
• Original engravings falling under 9702
• Original sculptures categorized under 9703
• Products under the code 9704 are freely importable.
• Imports of items in 9705 are restricted.

Characteristics of Indian Handicrafts for exports; as defined by Govt. of India are:

• They are quota free and neutral to fiber content or composition, barring 100% silk.
• They include Garments, Made-up and clothing accessories.
• Are produced in cottage industries.
• Should not have zippers.
• Must be ornamented using any one or more of the following Indian folk styles.
• Hand painting, Hand printing, Batik, Tie and Dye, Kalamkari.
• Hand embroidery, Crocheting.
• Appliqué work of sequins, wooden or glass beads, shells, mirror, ornamental motifs of
textiles materials.
• Extra wrap of welt ornamentation of silk, art silk or zari threads.
 • Should conform to shape and styles of each item as defined in the agreed list of
different countries.
• Should satisfy the dimensional aspects.

Tariff-non-tariff Policy:

Except for 9704, all the items under 97 attract a total import duty of 35.2 per cent. This
includes a basic duty of 35 per cent and a special additional duty of four per cent. Items under
9704 do not attract any import duty.

Export prospects of handicrafts

from India
handicrafts sector occupies animportant place in the Indian economy as it contributes
significantly to employment generation and export earnings. The economic importance of
the sector also lies in its high employment potential, low capital investment, high value
addition and continuously increasing demand both in the domestic and overseas markets. The
sector provides employment to more than 60 lakh craft persons mostly from rural areas.
industry is highly labour intensive and decentralized, being spread all over the country in
rural and urban areas. Details of concentration of major handicrafts at different places in
India appear at Annexure I. The Office of Development \Commissioner (Handicrafts) under
the Ministry of Textiles, Government of India is the nodal Government Department at the
national level for the development of handicraft sector in the country. Through its various
agencies like Export Promotion Councils for Handicrafts, State Handicrafts Development
Corporations, Apex Societies and (17.28%), UK (13.69%), Japan (7.85%), and Sweden
(4.38%). On the other hand, the countries showing a significant growth during the period
included: Korea Republic (54.74%), Canada (37.34%), France (25.41%), and Netherlands
(25.03%)., it has been supplementing the efforts of the state governments by implementing
various developmental schemes of the Government of India. The handicrafts sector has been
identified by the Ministry of Commerce and Industry, Government of India, as a thrust area
for export promotion. The Export Promotion Council for Handicrafts (EPCH) functioning
under the aegis of Office of Development Commissioner (Handicrafts) and governed by
the policies of the Ministry of Textiles, Government of India, since its inception in 1986, has
been playing an important role to promote exports of Indian handicrafts. To boost exports of
handicrafts, the Council undertakes various activities like participation in national and
international trade fairs, arranging buyer-seller meets, organizing workshops, seminars and
training programmes. The various handicrafts promoted by the Council inter alia include
artmetalwares/EPNS wares, hand printed textile and scarves, wood carvings and other
artwares, embroidered and crocheted goods, zari and zari goods,
shawls as artware, imitation jewellery and several other handicrafts, namely artistic leather
goods, papier machie products, lace and lace goods, toys, dolls, lacquerware, marble crafts,
etc. For knowing latest developments in the exports of handicrafts and also participation in
trade fairs both in India and abroad, access its website: www.epch.com.During the year 2004-
05, the Council undertook various export promotion activities. Some of the important ones
included: (i) Participation in many trade fairs abroad, viz. FAME trade fair at Manila from
19-22 April 2004; Impex- Gift & Homeware International at Melbourne (Australia) from
18-20 May 2004; Gifts & Premium Show held at Hong Kong from 28 April to May 1
(i) World Imports. World imports in 2003, as may be seen from Table 1,
registered a decline of 8.94 per cent when the same reached a level of US$10,046
million as against US$11,032.7 million in the previous year. USA continues to be the
largest importing country. However, during the period, its imports registered a
decline of 15.92 per cent when the same nosedived to US$4,352.8 million from
US$5,172.2 million. The countries registering a declining trend during the period
included: Italy (66.33%), Germany
WORLD TOTAL 11,367.0 11,032.7 10,046.0 (-)8.94
Source: United Nations, 2003 International Trade Statistics Yearbook, Volume II,
Trade by Commodity, New York, 2004.
Source: Office of the Development Commissioner (Handicrafts), Ministry of
Textiles, Government of India, New Delhi.
Category wise India’s exports of handicrafts to major markets in 2003-04 and 2004-
05 and their exports in select markets during this period appear at Annexures II and

Export Promotion Councils

1) The All India Handicrafts Board : (West Block VII, R.K. Puram, New Delhi- 110022).
This board acts as a Commodity Board for handicrafts and has an Export Section with a
Deputy Director (Exports) in charge. The Board collects and disseminates information,
arranges exhibitions, sponsers sales and study teams, and invites foreign buyers. The regional
offices of the Board handle registration and process requests for any specific export
promotion measures.

2) The Gem and Jewellery Export Promotion Council : (D-15, Commerce Centre, 4th
Floor, Tardeo Road, Bombay- 400001) The council aims at providing facilities and incentives
regarding the exports of pearls, precious and semiprecious stones, diamonds and sythetic
stones; to assist in improving and modernising of the jewellery craft of the country.

3)The Handloom Export Promotion Council : (123, Mount Road, Madras- 600006) It
superintends the export promotion of INdian Handlooms in the country.

4) The Handicrafts and Handlooms Export Corporation of India:(Jawahar Vyapar

Bhavan, Anex-I, Tolstoy Marg, New Delhi 110001). A government of India undertaking, it
supplements the export efforts of the private sector, besidesexporting directly. It undertakes
varoius exort promotional and developmental measures such as publicity and Indian
participation in foreign exhibitions, and invites reputed designers for advise and assistence. It
also has branches, showrooms and warehousing depots abroad.
5) The Indian Institue of Foreign Trade : (Ashoka Bhavan, 93 Nehru Place, New Delhi-
110024). Besides training courses for export executives, this Instiute carries out surveys of
various markets and publishes them.

6) The Trade Development Authority of India : (Bank of Baroda Building, 16 Parliament

Street, New Delhi- 110001). Handicrafts and garments are included in it's trade promotion
activities among other items. It also has offices in New York, Frankfurt and Tokyo. Besides
inviting buyers, it arranges buyer- seller meets in selected markets.

7) The Export Credit Gaurantee Corporation : (Head office : Express Towers, 10th Floor,
Nariman Point, Bombay-400001). It provides export credit intelligence and issues, covers
against risks. It also has branches in Delhi, Calcutta, Chennai and Cochin.

8) The Export Inspection Council : (14/1-b Erza Steet, World Trade Centre, Calcutta-
700001). This Council has especially been set up to ensure the quality control and Pre-
shipment Act. The Council has also set up a number of Export Inspection Agencies.

9) The Federation of Indian Export Organisation : (Allahabad Bank Building, 17

Parliament Street, New Delhi-110001). It is a non profit servicing institution, set up jointly by
the Government, industry and trade. FIEO is an apex forum coordinating and supplimenting
the insitutions. It also gives special attention to the export promotional activites of small
sector including crafts.

10) The Trade Authority of India : (Pragati Maidan, New Delhi-110001) The TFA is an
autonomous organisation established by the Government of India as a company. Started in
March 1977 it has today become a highly effective organisation giving a new orientation to
the country's trade promotional activities. It unifies policy direction, controls and implements
programmes of India's participation in fairs and exhibitions, both in India and abroad.
Handicrafts continue to recieve the special attention of the TFA

Handicraft Materials

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India is a treasure trove of the most exquisite handicrafts available. Various raw Materials
have lent themselves to an array of exotic items that are instantly captivating. The amazing
diversity in Indian cultures and traditions, ensures variety in the transformation of every
single material to a handicraft item. The deft hands of the craftsman breathes life into these
Materials shaping them into beautiful pieces of art. Click on to read about the different
Materials used in different parts of India, and the various handicraft items made out of them.

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Aluminum Crafts
Splendid designs with panache, Indian artisans produce marvelous work of aluminum crafts
each unique in their own way blending perfectly the antique & contemporary art work.

Bead Crafts
Beads of transparent & semi transparent nature are pleasingly used to give shape to varied
aesthetically appealing products helping in enhancing the overall impact on the onlookers.

Brass Crafts
Brass craft ornamentations always have a spell bounding effect on people with their minute &
detailed engravings highlighting the effortless beauty put into them by the dexterous
craftsmen.

Cane/Bamboo Crafts
Add feathers to the surrounding's beauty by incorporating fragilely designed cane & bamboo
items in the decor, thus, depicting the rich Indian artistry in the most sophisticated style.

Ceramic Crafts
Express imaginative thoughts & add magnetism to the milieu with these artistically designed
ceramic products projecting the artist's mastery over one of the finest Indian artwork.

Coir
Intoxicate the senses with the finely crafted coir fiber poducts. Bring the Indian rural touch to
the rich & suave drawing rooms & highlight the intricate formation of eye catching coir
artifacts.

Gems
Give concreteness to imaginations by imparting exclusive shapes with refinement to gem
products. Enhance the frailness of gem jewelry products by incorporating equally fragile
patterns.

Glass
Glassware depicts the richness & sophistication of the traditional art craft coupled with
elegance & frailness. An ultimate decorative item, glassware products have never lost the
enigmatic spell.

Paper Crafts
Bring color to life by decorating the environment with attractively handcrafted paper products
available in unique range of designs, vibrant hues & variety.

Ironmongery
The raw appeal imparted to the varied products through engravings done on forged iron
Materials adds a classy touch to any setting projecting the rich tradition of ironware.

Ivory
Grace the pristine beauty of a living space with the extraordinarily crafted ivory ware
products, thus, reminder of the rich past culture & tradition with their masterful cuts, carvings
& designs.

Jute
Elaborate & intricate designs make the most appealing environment friendly jute products
perfect for decorating any setting, leaving an aesthetic & pristine touch.

Leather Crafts
Leather crafts have always enamored people with their soft & royal sheen & rich material.
Available in a wide range of products, leather has been in usage since ages without losing its
timeless charm.

Metal Crafts
Metal crafts have lured the customers with their refined artwork. Be it copper, bronze or non
ferrous elements, all appeal the eyes when coupled with inlay work & embellishments.

Papier Mache Crafts

Alluring crafts made of waste paper Materials, papier mache crafts have created a niche
market for themselves successfully with wild imaginations carved out beautifully on these
Materials.

Pottery
The age old tradition of pottery has been kept alive by craftsmen blending the antique with
modern designs. Adorn the setting with these ethnic crafts available in wide range of designs.

Stone Crafts
Stone crafts find place in any setting due to their extreme functional aspect. Be it kitchen,
garden, office or a public place, stone crafted products have immense importance.

Silver Crafts
Owing to the unique appeal and intricate craftsmanship of adept Indian craftsmen, there is a
huge demand of aesthetically created silver crafts.

Terracota Crafts
Terracotta work has always enhanced the decor with their appealing beauty leaving people
dumbstruck. Giving shape to varied figurines & plaques, these earthenwares are worth
possesing.
Textile
Vibrant colors with intricate & interesting patterns impart a definitive character to the varied
facets of Indian textile, thus, constantly introducing the customers to the rich Indian textile
tradition.

Wood Crafts
Redefine the appearance of the home furnishing area by incorporating distinct decorative
items in wood Materials. Shaped with fine cuts, intricate detailed work, imaginative designs
make them look unique.

Wrought Iron Crafts

The raw appeal of wrought iron crafts is still intact with people dazed by the antique &
fabulous artwork perfect to impart individuality to a milieu with their flawless beauty.

Competitive Situation

German giftware and handicrafts consumption is growing more or less in line with the
relatively slow growth rate of income during the last years. Thus, expectations for additional
growth are not very high. Annual growth rates of between 1.5-2 percent are forecast for the
next few years for the overall giftware and handicrafts market. In general the market shows
good business opportunities if prices and quality are competitive and delivery schedules are
fulfilled.

Apart from its own producers, Germany is supplied by giftware and handicrafts from nearly
all of the European countries. German firms often import specific product groups from a
particular country. Major suppliers of pottery are, for example, Spain and Portugal; fine
exclusive stationery comes from Italy, France and Switzerland; candles from Poland, China
and Portugal; dried flowers from the Netherlands etc.

Fierce price competition in Germany is intensified by the increasing quantity of Chinese and
Asian made products on the market. For India this situation coupled with the relatively
strong Indian rupee which means that firms proving to be most successful in the recent past
have offered niche market giftware and handicrafts, i.e., exclusive to Indian handicrafts items
or new-to-market products.

A few well-established German manufacturers of giftware and handicrafts items are:

Koziol GmbH, Erbach Krebs-Glas-Lauscha GmbH, Ernstthal

Barti GmbH, Garching Margarete Steiff GmbH, Giengen

Duni GmbH & Co. KG, Bramsche WMF AG, Geislingen

Rastal, Hoehr-Grenzhausen Rosenthal AG, Seib

Fartak, Lahr W. Goebel Porzellanfabrik, Roedental

GIES Kerzen, Glinde Walther-Glas GmbH, Bad Driburg

Jet Papier GmbH, Bernau

Sales volume of specific sub-sectors (estimates):

Some estimates of individual giftware and handicrafts subsector volume sales are provided as
follows:

Seasonal: Market insiders estimate the total volume of the seasonal items market, including
Christmas, Easter, Valentines Day and the German counterpart of Thanksgiving, at DM 7.7
billion. In 1997, about DM 3 billion were spent alone for Christmas decoration, Christmas
floristic items and Christmas trees only. Christmas items are usually imported from China,
Taiwan, Thailand, Philippines and India. However, Indian Christmas decorations as candle
stands or Christmas tree hangings and soft toys find a ready market in Germany if they are
moderately priced.

Hobby and art supplies: The present market volume of hobby and art supplies in Germany
is estimated at about DM 3 billion, while the total European market should amount to DM 12
billion. Insiders believe that this specific market segment still offers some potential for new
products. A recent survey shows that apart from their school days, most of the Germans who
do regular DIY or hobby work are between 60 and 69 years (10.8 percent of the German
adults) old. With the fast ageing of the German population a stronger demand for hobby and
crafts is likely.

Incentive items: From 1992 to 1998, the total German market for incentives increased from
nearly DM 3 billion to DM 6 billion.

Toys: In 1998, annual sales of licensing products amounted to about US$ 4.2 billion in
Germany. Also in 1998, the toys market volume expanded to DM 6 billion. Total annual
sales for computer games and learning games alone, increased to DM 2 billion in 1998
compared to the pre-year level of DM 1.7 billion.
Market Access

EU member states and Asian countries, China and India in particular, are major suppliers of
giftware and handicrafts to the German market. Indian firms making a first approach to the
German market are advised to have comprehensive product literature and data sheets
professionally translated into German. Although English is widely understood, a well-
prepared translation gives an important marketing edge, particularly in the initial
presentation. Indian firms should preferably appoint an agent or distributor who can maintain
a stock sufficient to answer short-notice orders.

Customs Duties

Customs duties vary according to material and product. Though duties are high for a few
items, i.e., dried flowers, potpourri (16.7-20 percent), T-shirts (12.0-13.2) and hand- woven,
woollen blankets (13.4 percent), the majority of customs duty rates falls in the range of 5-8
percent. For example:
Customs Duties (in percent)

Ceramics : 4.1 - 7.5

Toys : 5.6 - 6.3

Stationery : 8.4

Plush animals : 6.0

Quilts/blankets : 7.5

Candles : 2.8

Silver jewellery : 2.5

In addition, there is a 16 percent sales tax, which is eventually passed on to the consumer in
form of the value-added tax (VAT). But the VAT has to be paid when entering the German
market by the exporter/German importer.

Items that originate from certain animal species, i.e., snakeskin or hides of some animal, it
must be ensured that the export of these products complies with the Convention on
Endangered Species (CITES). Regarding sample orders, exporters should be aware that one
sample with a maximum value of DM 50 each or, five identical samples of one product group
not exceeding a total value of DM 50, are usually customs free.
Product Standards

In view of the wide field of products that could be considered as giftware and handicrafts, it
is difficult to name standards. Compliance with EU standards and regulations is strongly
suggested. There are, however, only few product groups in the giftware and handicrafts field
that have to follow standards. It is essential that CE-labelling be observed where required.
The CE-mark (including conformity statement and technical documentation) is mainly
required for toys (88/378/EEC standard). While the quality regulations for candles are
obligatory assuring a certain level of quality, the toy regulation and the electronic standards
have to be observed because of safety considerations:

Major Distribution Channels

Wholesalers
Importers/distributors
Commission agents/sales representatives
Department stores
Mail-order
Internet sales
Tele-shopping

The individual channels are described in detail in the following.

Wholesalers:
Besides offering wide range of goods to retailers for direct sales, this channel also supplies
large quantities of individual articles. They are very particular in maintaining consistency in
the kind of products and their quality. One of the distinguishing features of wholesalers is to
provide distribution and storage facilities. Specialised wholesalers deal in sales to retailers as
well as to final consumers. They maintain high quality standards and but have a narrower
and in-depth range of arts and crafts.

Importers/distributors:
Most Indian giftware and handicrafts companies use importers/distributors to market and sell
their giftware and handicrafts lines. They buy and sell on their own account. Thus, the
companies take advantage of the distributor's expertise, his sales force and his existing
distribution channels. Distributors call on giftware and handicrafts retailers, purchasing
groups and supermarkets. The distributors' mark-up varies depending on the giftware and
handicrafts item, but at least 50 percent. While the mark-ups vary according to the
distributor; they usually also depend on the exclusivity of a product and on its
competitiveness in the overall giftware and handicrafts market.
Germany hosts more than 45,000 giftware and handicrafts retailers. Several retailers import
directly from the United States and sell to the German customer. Usually these are small
companies looking for items new to the market and handling small orders only.

Commission agents:
Commission agents provide Indian companies with direct access to the German market and
direct control. Independent commercial agents are normally working on a 15 percent
commission and operate on a regional basis. They concentrate on specialist retailers,
purchasing groups and department stores. Commission agent contracts are based on stringent
EU and German regulations. An Indian firm wishing to appoint an agent should make sure
that such standard contracts meet its expectations. In order to facilitate market entry efforts
by the agents their initial commission is often a few percent higher than the "usual"
commission. These additional payments are to reimburse the agent for substantial advertising
and any special efforts facilitating the new product's market entry.

Department Stores:
Indian companies interested in establishing business contacts with major department stores,
mail-order houses and retailers may also choose the direct approach. Department stores in
particular, prefer to deal directly with manufacturers. Their buyers are very specialized and
only handle a limited range of products. At some occasions department stores also buy
through independent commercial agents. Quite often they have their own buyers as well as a
few agents that usually work with them and who know their assortments. If a department
store decides to import a particular giftware and handicrafts item, it places bulk rather than
small orders.

Mail Order:
On an average, each German consumer buys products totaling to DM 500 each year from
mail-order houses. There are about 200 mail order companies in Germany. In Europe,
Germany is the largest mail order market, followed by Great Britain and France. The total
European market volume for mail order products is estimated at approximately DM 90
billion. Of the 20 major mail order companies in Europe, 12 have their headquarters located
in Germany. Among them are the world's largest mail order companies: Otto Versand in
Hamburg and Quelle Schickedanz AG & Co. in Fuerth. In addition, several German mail
order companies operate in other European countries, as well.

Internet Sales:
Germany will become market leader among the EU countries with regard to sales over the
Internet by the year 2000. It is anticipated that by then German electronic sales, which are
estimated to reach a volume of DM 500 billion worldwide in 2000, become second in the
worldwide ranking after the United States and before Japan. A typical German Internet user
and a major German mail-order publication is between 20-39 years old, is highly educated
and earns more money than the average German consumer. This age group consists of about
4.5 million Germans. Seventy percent of these consumers are male. Already today, the
Internet is a major sales channel for German mail-order houses.

Teleshopping:
QVC and HOT are the two tele-shopping channels in Germany. They operate all over
Germany and offer various types of giftware and handicrafts; jewellery, fashion, health,
beauty; household consumer goods; collectibles and home accessories.

MODE OF TRANSPORTATION CHOOSEN BY US.

Our study is basically to show the richness of India in “Handy Craft”. India is huge producer
and exporter of handy craft products such as clothes , gems , jewellaries , leather products ,
paintings etc. Gems and jewelleries are exported through ariel route ( shown by red
line)whereas all other products are transported through sea route ( shown by black line )
because they are transported in bulk.
 CONCLUSION
As we conclude the whole data we can see the result that India enjoy the
Monopoly in this sector and every handycraft industry is influenced by India
because India is the largest producer and exporter of handycraft and supply
chain management and logistics play the important role in this this particular
sector, this is the backbone of this industry . An effecent supply chain gives
the competitive advantage to this industry.
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