The document discusses trends in India's handicraft export industry over the past 5 years. It finds that while exports have increased from Rs. 8718.94 crores in 2008-09 to Rs. 23504.42 crores in 2012-13, the industry still faces challenges that limit its growth potential. Major issues include lack of access to credit, raw materials, and skilled labor as well as weak marketing, design capabilities, and reliance on established markets. The government has initiatives to support the industry but more efforts are needed to boost mechanization, participation in international trade fairs, and address other problems holding the industry back from greater export success. With improved support, the handicraft industry has strong future prospects to contribute to India

1. Term paper presentation on
Trend analysis and problems & solutions of
export of Indian handicraft industry

2. INTRODUCTION
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.”
Handicrafts are made from raw materials and can be produced in unlimited numbers. Such
products can be utilitarian, aesthetic, artistic, creative, culturally attached, decorative, functional,
traditional, religiously and socially symbolic and significant.
INDIAN HANDICRAFT INDUSTRY:
The Handicraft Industry is one of the important productive sectors. Various attempts
have been made to define this broad and diversified industry. Crafts are unique expressions that
represent a culture, tradition and the heritage of a country. India is well known for its exotic crafts
legacy and tradition. It is the land of art and crafts, a country of rich culture, history and traditions.

3. 1. Industry is playing a major role in the development of Indian
economy.
2. As per the latest updates, there are more than 23 million
craftspeople in India today engaged in the growth of Indian
handicrafts industry.
3. Second largest employment sector in India, just after Agriculture
63% of exports turnover. The industry is spread allover the country
mainly in rural and urban areas.
4. Most of the manufacturing units are located in rural and small
towns, and there is huge market potential in all Indian cities and
abroad.

4. Export Promotion Council for Handicrafts
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, Government of India. EPCH has the distinction of
being considered a 'model council', a self-sustaining body that self-finances
all promotional activities.
Export Promotion Council for Handicrafts (EPCH) was established under
Companies Act in the year 1986-87 and is a non-profit organization, 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 projected 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 members exporters.

5. Basically 9 handicraft items are mostly exported from India that are metal ware,
wood ware, hand-printed textiles, hand-knotted and embroidered textiles,
leather goods, stoneware, carpets and floor coverings.
The Indian Handicraft Industry is showing continuous growth rate of 20% every
year. Handicrafts industry is one of the important segments of decentralize
sector in India.
According to the national census of handicrafts, undertaken by the National
Council for Applied Economic Research the value of handicrafts produced last
year were of Rs.17970.12 Crore.
India’s contribution in world market is 1.2%.
The total exports of crafts items: - Rs. 23504.42 Cr.
Industry’s share in India's exports:- 1.51 %

6. Need of study
 Handicraft of India reflects its culture and the rich ancient
heritage. But this decentralized industry though contributes a
large part to Indian exports but this industry has quite a number
of problems which is still hidden from the eyes of industrial
development agencies. Therefore this study is needed to unblind
the various problems and solutions to this industry.

7. Objective
 To know the reason responsible for export performance .
 To study the performance of handicraft export from India.
 to study the handicraft export form Agra & future prospects.

8. States and its items
Region/ZONAL state Items
east West Bengal, Orissa, Bihar and Jharkhand Terracotta crafts, clay crafts, jute crafts,
leather crafts, conch shell crafts and
kantha-stitch` craft marvelous glassworks, carpet
weaving crafts, lacquer crafts and stone crafts.
Appliqué work, `Patachitra, wood carvings and
metal crafts.
west Gujarat and Rajasthan gota,pichwai, Nathdwara,Saurashtra
Pottery crafts, woodwork, brass and metal work,
crochet embroidery, bamboo craft, fiber craft,
batik prints and metal embossing.
north Jammu and Kashmir, Himachal Pradesh, Punjab,
Haryana, Uttaranchal and Uttar Pradesh
carpets -weaving, metal crafts, furniture making
and wood carvingphulkar crafts, shawls of
Chamba, Textiles, woodcarvings, carpet making
and pottery.
south Karnataka
Tamil Nadu
Andhra Pradesh
. Kerala
woodcarving, ivory carving, `kasuti embroidery
Pottery and `Cheennapatna` toys. Papie mache,
stone craft,, woodcraft,bidri crafts, embroidery
crafts known as `banjara needle craft`,
wood crafts, bamboo crafts and ivory crafts.

9. Major Crafts and its Markets
Major Crafts Major Markets
1.Hand Knotted Woollen Carpets Germany, USA, Switzerland, U.K, Italy, Canada, Holland etc.
2.Art Metal Wares Germany, USA, U.K, France, Saudi Arabia, Canada, Italy etc
3.Hand Printed Textiles and Scarves Germany, USA, U.K, Canada, Japan etc.
4.Embroidered And Crocheted Goods USA, U.K, Japan, France, Saudi Arabia etc.
5.Wood Wares Saudi Arabia, Germany, USA, Japan, France etc.

10. Major Markets for Indian Handicraft
U.K, 11%
OTHER, 22%
AUSTRALIA, 2%
CANADA, 3%
FRANCE, 5%
GERMANY, 11%
ITALY, 4%
JAPAN, 4%
SWITZERLAND 15, 1%
SAUDI AREBIA 2%, 2%
NETHERLAND 3%, 3%
U.S.A, 32%
% share U.K
OTHER
AUSTRALIA
CANADA
FRANCE
GERMANY
ITALY
JAPAN
NETHERLAND 3%
SAUDI AREBIA 2%
SWITZERLAND 15

11. Export Performance of 5 years
25000
20000
15000
10000
5000
0
Export (handicraft) from india
2008-09 2009-10 2010-11 2011-12 2012-13
Export (handicrapt) in india
YEARS Export (handicraft)
2008-09 8718.94
2009-10 10533.96
2010-11 12975.25
2011-12 17970.12
2012-13 23504.42

12. Comparison of Total Export and Handicraft
Industry
350000
300000
250000
200000
150000
100000
50000
0
2008-09 2009-10 2010-11 2011-12 2012-13
Export (all
india)
Export
(handicrapt)
YEAR EXPORT FROM INDIA
(TOTAL)
EXPORT
(HANDICRAFT)
2008-09 178751.4 8718.94
2009-10 251135.9 10533.96
2010-11 304623.5 12975.25
2011-12 300274.1 17970.12
2012-13 230171.03 23504.42

13. Comparison of growth rate
350000
300000
250000
200000
150000
100000
50000
0
2008-09 2009-10 2010-11 2011-12 2012-13
Export (all india)
Export (handicrapt)
growth
YEAR Export (all India) Export (handicraft) Growth
2008-09 178751.4 8718.94 4.88%
2009-10 251135.9 10533.96 4.20%
2010-11 304623.5 12975.25 4.26%
2011-12 300274.1 17970.12 5.98%
2012-13 230171.03 23504.42 10.21%

14. Trend analysis of Indian export last 5 years
YEARS EXPORT IN CRORES
(HANDICREFT)
X=5298.y+2007
2008-09 8718.94
8183.12
2009-10 10533.96
13481.12
2010-11 12975.25
18779.12
2011-12 17970.12
24077.12
2012-13 23504.42
29375.12
(x=5298.y+2007) R2=0.55

15. The coefficient of determination (R2) 55% was found in the above
model, which means that 55% variation in the dependent variable was
explained by the independent variable.
The figure shows that from 2006 to 2008 the exports show the
decreasing trend.
The decreasing trend is the cause of the global meltdown, now from
2013 onwards it again shows the upward trend which is favorable for
our economy.
In the above figure the growth shows a fluctuation nature, in 2007-08
the growth rate of exports are 4.88%, now it is 17.25% in 2013-14.
Between this long spell of time sometimes it shows more fluctuation
and some time it go smooth.

16. Problems
 Credit availability
 Problem with raw material supply
 Shortage of skilled labour
 Design and marketing
 Delivery problems
 Overdependence on established market

17. Solutions
 Handicraft micro loans
 Raw material houses
 Training
 Handicraft institutions
 Professional marketing personnel

18. Government initiatives
 As Indian Handicraft Industry contributes very important role in Indian
economy. Hence For the proper functioning and operation of industry
govt. Has made some policies and regulation. In India, the Ministry Of
Textile is responsible for the formulation of policy, planning,
development, export promotion and regulation of the Handicraft
Industry. Some policies & rules are as follows:
 There are no restrictions regarding location for establishing
manufacturing units.
 All producers of handicrafts are exempt from obtaining Industrial
License to manufacture.
 The diligence undertakings, however, are required to file an
Industrial Entrepreneur Memoranda (IEM) in Part 'A' with the
Secretariat of Industrial Assistance (SIA), and obtain an

19. Research methology
 DATA COLLCTIONS:
This research paper is descriptive and investigative, based on secondary
data only. The necessary secondary data has been composed from different
old research papers, eBooks, internet, some of the governmental data etc.
Presentation Tools:
Pie chart
Tables
Diagrams
Statistical tools:
Regression
Time series
Correlation

20. FINDINGS
In small units (i.e. turnover less then 10cr.) 14% units go for outsourcing.
Handicraft Industry of Jodhpur is one of the biggest industries of India dealing in
export With a yearly export of more than 1000 Cr.
This industry is not investing in machinery even after knowing that the main concept
behind success in this industry is bulk supply and this is the point where other
countries exceeds.
most of the exporters are not going for marketing and even if any firm is going then
also they are sending only their relatives there instead of any professional.

21. Suggestions
For the sustainable growth of the handicraft industry advertisement both at national and
international level should be undertaken publicity, exhibition, printing of brochures and
participation in fairs will help in boosting this traditional industry.
Government should set up well organized handicraft marketing system so that both
producers and consumers would reap more and more benefits. In the absence of well
organized market both consumers and producers are exploited.
Government should exempt or at least the sales tax on handicrafts which will result in the
price of handicraft products and thereby increase the sales.
Foreign master designers may be invented to design centers to render guidance to the
craftsman.
Uniformity in price is also an important tool for the growth of this industry. The customers
feel that they were exploited and get harassed when they purchase the same handicraft
product from two shops at different prices.

22. Conclusion
Handicraft Industry of India is one of the major exporters. Although looking at the
trend of export figures we Can see a distinct growth in this industry button the other
hand looking at the potential of the Market this growth is not satisfactory,. The total
export of handicraft from India that is around 10000 Cr. shares is only 10%. The
main observations of our study are some issues like –
1. Labor problem
2. Unwillingness towards investment in machinery,
3. Inability to participate in foreign trade fairs
Although there are a number of factors that hinders the growth but these are some
of the most important factors, If Handicraft Industry will go for mechanization or at
least start participation in foreign trade fairs it will raise exports figures much higher

23. Future Prospect
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 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.

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