The term ‘handicrafts’ encompasses a wide range of artifacts. The informal sector, which includes handicrafts, has been described by the International Labor Organization (ILO) as a part of economic activity characterized by certain features like reliance on local available resources and skills, family ownership, small scale operations, labor intensity, traditional technology, skills generally acquired outside the formal school system, unregulated and competitive markets. One of the best definitions of handicrafts is that adopted by UNESCO-UNCTAD/WTO (ITC) at Manila, 6-8 October 1997 during a symposium on crafts, which is: “Artisanal products are those produced by artisans, either completely by hand, or with the help of hand tools or even mechanical means, as long as the direct manual contribution of the artisan remains the most substantial component of the finished product.

The special nature of artisanal products derives from their distinctive features, which can be utilitarian, aesthetic, creative, culturally attached, decorative, functional, traditional, religiously and socially symbolic and significant”. A simple nomenclature for handicrafts was given by Development Commissioner (Handicrafts) Ministry of Textiles, Govt. of India in 1989: “... items made by hand, often with the use of simple tools, and generally artistic and/or traditional in nature. They include objects of utility and objects of decoration.” A World Bank report classifies products as crafts on consideration of:

• Manual labour with minimal or no input from machines.

• A substantial level of skill or expertise.

• A significant element of tradition.

An invaluable, and integral, part of the nation’s heritage, handicrafts command an importance, both cultural and economic. The sector yields a number of economic, social and cultural benefits such as:

• Highly dispersed and centralized; spread all over the country, in rural and urban areas.

• Highly labor-intensive, especially helping weaker sections of society.

• High employment potential in relation to capital employed.

• High output to investment ratio.

• Generation of subsidiary off-season employment.

• Generation of foreign exchange from exports.

• High ratio of value addition.

• Large-scale involvement of women, weaker sections and minorities.

Handicrafts is one of the key export segments of Indian trade faced with several problems such as unorganized marketing and inadequate market information; inadequate support mechanism for product development; power interruptions and other infrastructural deficiencies; inadequacy of raw material at appropriate prices; lack of mechanism for dispersal of technology for enhancing productivity; final finishing and lack of investment for fulfilling international requirements and a general poor image of the country as a supplier of quality goods with consistency. The Indian handicraft industry considered to be small scale and cottage sector helps to solve social and economic problems of the artisans, by providing employment to over 70 lakhs artisans (including those in the carpets trades) and more than 67,000 exporters / export houses promoting regional art and craftsmanship in the domestic and global markets. This includes a large number of women and people belonging to weaker sections of the society. The industry is highly labour intensive and decentralized, being spread all over the country in rural and urban areas. Many artisans are engaged in certain crafts work on part-time basis. Handicraft is a sector that is still explored from the point of view of hidden potential areas. Going back into the reason for small share of Indian handicrafts in the world market, the main parameter which comes out is ‘Search and Exploration of Hidden Crafts of India’ the field which has not been ever touched by Indian handicraft industry [6]. The existing craft persons who are the backbone of Indian handicraft industry as provided with inherent skill, technique, traditional craftsmanship but that is quite sufficient for primary platform. However, in changing world market these craft persons need an institutional support, at their places i.e. craft pockets for value addition and for the edge with other competitors like China, Korea, Thailand etc [9].

LITERATURE REVIEW:

Many studies were carried out during the last six decades to explore the weaknesses and market performance of village crafts of India. Reviewed literatures reveal that the research on village crafts, a compilation of tradition with religion and philosophy dates back to the Vedic period. The reviews done on the Vedas and Upanishad comment enormously on the prodigious contributions of village crafts to India’s trade and commerce [20]. Many studies have identified village crafts as a link with the ancient past [3,8,11,12]. To support the significance of handicraft in preserving tradition of a country, Munshi (1970) argues that only through promoting handicrafts a nation could initiate measures to conserve its social structure, holding its traditional values [15]. Studies by on diversity marketing in craft industry, recommend regular market survey to compile market information to design workable solutions to solve market problems [14,16]. Lack of market awareness is the main obstacle for any village enterprises to put up their products in urban markets [19]. The reasons for the failure of village crafts are poor designs, low quality materials and inefficient market approaches; consequently, these weaknesses are exploited by machine made urban craft units, who apparently lockout village crafts from global markets [4].

Florence (2005) review suggest strategic measures to improve markets for village crafts, often supply of scattered, insufficient and unsystematic data on production and sales; will be the major obstacles for them to develop quantitative marketing strategies [7]. The Kashmiri handicrafts, especially its shawls and hand woven carpets, are also very renowned and have economic potential in exports the industry has the ability to create such handicrafts and export them to other areas of the world in which such commodities are rare and valuable could raise many women and families out of the difficult situation of poverty [5]. The handicraft activities are especially carried out in Kashmir valley which is called the home of handicraft goods and has earned a unique place in the world of handicraft scenario. The sector makes conspicuous contribution in sustaining export trade of the state [21].

A study performed on the leather industry in India revealed the change in export and conveys that the leather export has been seen decreasing due to the change in demand in the world and market competiveness [17]. India should deliver high quality products by use of indigenous advanced technologies. Industries should upgrade its present facilities and products to international standard. The sector is economically important from the point of low capital investment, high ratio of value addition, and high potential for export and foreign exchange earnings for the country [9]. Yu (1997) examined the role of entrepreneurship in the economic development of Hong Kong. It argues that dynamics of Hong Kong's economy are attributed largely to adaptive entrepreneurs who are alert to the opportunities, maintain high degree flexibility in their production and respond rapidly to change. Hong Kong entrepreneurs have shifted their production activities from one product to another, from one industry to another, from higher cost to lower cost regions, from tradition fishing and agriculture to manufacturing and then finance and other services. Their efforts have brought about structural transformation in the economy [22]. Sudha and Krishnaveni (2012) discussed the importance of small scale sector in the economy, over the last five decades. The paper also highlights the export orientation for small and medium enterprises in India [18]. The present study is step further to develop sufficient insight leading to formation of appropriate institutional arrangement to strength economic viability of small scale industrial units in Haryana and elsewhere in country This study will provide essential guidelines to planners, policy makers, administrators and exporters. This will also assist to entrepreneurs to be cautious in planning, erecting and managing their units. It also forces the SSI entrepreneurs to enter in worldwide business, so as to avoid common pitfalls resulting dreaded industrial sickness.

OBJECTIVES:

The paper seeks to highlight the importance of Indian handicrafts industry as a contributor to Indian economy. Specifically, the objectives are stated as under:

· To examine the growth of Indian handicraft sector

· To examine the existing and potential market and possible threats to the Indian handicrafts

· To study the various destinations where Indian handicrafts are exported

· To specify the problems faced by the handicraft sector and suggest measures

RESEARCH METHODOLOGY:

This research paper is descriptive and investigative, based on the secondary data composed from different research papers, journals, and government reports to understand the marketing strategies in handicraft business. The study relies on qualitative methods and is based on a series of individual and focus group interviews with firm owners at different levels of the value chain, as well as with representatives from governmental and non-governmental supporting organizations. A stakeholders’ seminar at the end of the three-week period of field work provided a forum for presenting and discussing the initial findings with value chain participants. To structure the individual interviews, separate interview guides were prepared for each of five categories of informants: exporters, designers/exclusive shop owners, artisan-brokers, producer-group leaders, and input suppliers. In addition, an interview protocol was prepared for the focus group interviews of microenterprise producers (craftsmen). The topics for the focus groups included craftsmen’s upgrading experiences, information about the distinct ways they sell their products, what they consider to be the differences between these marketing channels, and the kinds of relationships that they have with buyers in each of these channels.

HANDICRAFTS CLASSIFICATION:

Handicrafts are classified into two categories:

- Articles of everyday use

- Decorative items

The craftsmen use different media to express their originality. The diversity of the handicrafts is expressed on textiles, metals – precious and semi-precious, wood, precious and semi-precious stones, ceramic and glass.

Textile based handicrafts:

Hand printed textiles including block and screen printing, batik, kalamkari (hand printing by pen) and bandhani (tie and die) are used in products ranging from bed-covers to sheets, dress material to upholstery and tapestry. The famous embroidered articles of silk and cotton, often embellished with mirrors, shells, beads, and metallic pieces are also found in India. Embroidery is done too on leather, felt and velvet etc. This segment of the industry accounts for almost half a million strong employment in addition to a large number of designers, block makers, weavers and packers involved in the trade.

Clay, Metal and Jewellery:

Brass, copper, bronze, bell metals are used for a variety of wares and in a variety of finishes. Scintillating ornaments are available in a wide range of patterns, styles and compositions. Made from precious metals, base metals, precious and semi-precious stones; these ornaments have traditional as well as modern styles.

Woodwork:

Wooden articles in India range from the ornately carved to the absolutely simple. One can find toys, furniture, decorative articles, etc. bearing the art and individuality of the craftsman. India is known particularly for its lacquered wood articles.

Stone craft:

The intricately carved stoneware made of marble, alabaster or soapstone, etc., inlaid with semiprecious stones carry on the heritage of Indian stone crafts.

Glass and Ceramic:

Glass and ceramic products are a fast upcoming segment in the handicrafts from India. The age-old production process of mouth-blowing the glass is stills a nostalgic feeling. The varied shapes of ceramic and glass in a number of colours, would appeal to Western aesthetics while retaining the Indian touch.

CRAFT CONCENTRATION AREAS:

A wide range of handicrafts, such as, art metalware / Electroplated nickel silver ware, wood carvings and other wooden art wares , embroidered goods, lace and lace goods, toys, dolls, crafts made of leather, lacquer ware, marble crafts are produced all over India. Although it is difficult to attribute a specific place for the particular craft, the following places are listed for their particular crafts. (Table 1)

MARKETING PRACTICES IN HANDICRAFT:

Handicrafts business constitutes concept selling rather than mere product selling. Design and development of products constitute the soul and substance for the sector. These products focus on the ultimate consumer. The ingenuity of the designer as well as the craftsman will enable traditional crafts to be viable in a contemporary market. Demand for handicrafts is highly income-elastic. Handicrafts have an expanding market in developed countries. Market research into crafts is negligible, if not non-existent. New trends and designs, new integral ways to feel the pulse of the market need to be determined and disseminated. Marketing touches everyone's life. Marketing involves a large number of activities, including marketing research, product development, distribution, pricing, advertising, and personal selling, sales promotion, packaging and branding. Marketing combines several activities designed to sense, serve and satisfy consumer needs while meeting the goals of the organization. Handicraft units, which are mostly run by individuals with sole proprietary form of organization can’t afford to have separate and well-organized marketing system. The artisan-cum-proprietor of the unit looks after all the functions with the help of family members. Most of the time is spent in the production and acquiring raw materials. Usually, the artisans has little knowledge about the market information relating to his products. Hopefully, the artisans in handicraft industry give little importance to the vital marketing function. The role of market research and exploration with appropriate marketing strategies assumes critical importance. An import data analysis of handicrafts and giftware in potential countries will help determine the size and character of different craft markets across the globe. The important marketing aspects are discussed under the heads of Product, Price, Place, Promotion [13].

Product:

A product is a set of tangible and intangible attributes, including packaging, color, price, manufacturer's prestige, retailer's prestige, and manufacturer's and retailer's services, which the buyer may accept as offering want satisfaction.

Product-Line: Handicraft:

Firms which market only one product are rare today. Most firms offer a product line. A product line is a group of products related in function or customer purchase needs. The benefits of changing the composition of the product line, by either adding or subtracting products, depend on a number of factors- the preferences of consumers, the tactics of competitors, the firm's cost structure, and from the product to another name but a few. The handicraft units produce a number of products applying the concept of product line. The size of product line depends on the demand for products and availability of resources like financial and raw material. In the process of assessing the demand for the products and resources availability, the artisans from time to time add new products to its existing product line or drop some of its present products. The products which are not profitable are usually deleted from the product line. The decision whether to discontinue a product is often based on how fast it moves. Deletion of some of the products from product line may also be a practice in handicrafts.

Handicrafts designs:

The Design of a handicraft product should be in accordance with the tastes and preferences of customers. There are three types of designs viz., conventional, modern, combination of conventional and modern which are usually adopted by artesian. Conventional designs are age-old and traditional designs. While modern designs are in keeping with the changes of consumer preferences and tastes. Conventional and modern is a combination of both types.

Product planning and development in handicraft:

Product planning and development can be found even in handicrafts. Handicrafts are the products of creativity and workmanship. Artisans, usually, strive for excellence in their crafts by undertaking product planning and development.

Expansion in handicraft:

Expansion is increasing the present scale of operation either by mechanizing the process of production or by enhancing tile installed capacity. Expansion is undertaken when there is more demand for the products. It can also be undertaken in anticipation of future demand. However, expansion involves finance, without adequate finance, expansion activity cannot be taken. The expansion of the unit can be done in various ways; that is by mechanization, enhancing the installed capacity and increasing manpower.

Pricing:

Price is a measure of what one must exchange in order to obtain a desired good or service. Price is the monetary expression value and is the focal point of the entire exchange process. Historically, prices have been set by buyers and sellers negotiating with each other. Sellers would ask for a higher price than they expected to pay. Through bargaining they would arrive at an acceptance price. Setting one price for all buyers is relatively modern idea.

Fixing the price in handicraft:

The craftsmen are unable to estimate the exact cost, of production due to several reasons. Hence, they find it difficult to fix the price basing on cost of production. The craftsmen have said that they fix prices of articles basing on its market acceptance and basing on the price offered by master craftsmen, dealers and co-operative societies. Prices of handicraft articles are fixed by craftsman himself, master craftsman, dealer and co-operative societies, the extent of influence of these people in fixing the prices differ from craft to craft. Dealers and co-operative societies as viewed by a majority of the respondents influence a great deal in fixing the prices or handicrafts.

Taxes in handicraft:

Sales tax is not only high on handicrafts but also varied from craft to craft. It is suggested that the Government may exempt handicrafts from sales tax, as it is already done in States like Bihar, Madhya Pradesh and Kerala. The absence of sales tax on handicrafts will result in reduction of handicrafts prices and thereby increase the sales. It’s quite difficult for artisan to survive in market unless government protect them.

Place:

Distribution is concerned with the activities involved in transferring goods from producers to final buyers and users. It includes the physical activities, such as transporting, storing goods and the legal, promotional activities for transferring ownership. The artisans depend mostly upon master craftsmen, dealers and co-operative societies for disposal of their finished products. Some producers sell directly to the consumers, whereas some sell through dealers, master craftsmen and sales emporia. Sometimes, the dealers and master craftsmen sell the handicraft products through sales emporia, which directly contact the galaxy of consumers through its various outlets located at various important towns in India. There are certain limitations in the present channels of distribution of handicrafts. Co-operative societies are not serving' as a channels or distribution. Handicrafts producers are depending on the dealers and master craftsmen for selling handicrafts to consumers. Sales markets are purchasing handicrafts from dealers and master craftsmen; but not from handicrafts manufacturers. The first channel, handicrafts producers may sell their articles directly to their customers. Second channel, handicraft producers may sell to private dealers, who in turn, sell to galaxy of customers. The third channel, handicraft producers may sell to All India Handicraft Development Corporation, which in turn, sells to customers through its sales emporia and State owned emporia. The fourth channel, handicrafts producers may sell their articles to co-operative society which, in turn, may sell to All India Handicrafts Development Corporation which may sell to State owned emporia which, in turn, may sell to customers.

Promotion:

Corporate houses and multi-national companies may be urged and facilitated to adopt and encourage crafts for the gifts they distribute. An important segment of market that needs to be systematically promoted is for corporate houses with customized logos for giveaways by them for corporate clients. A range of products can be brought out—to be used in offices, at home, and as personal artifacts. In select cases, concepts can be developed for a turnkey project for a corporate house, right from conceptualizing to delivering the gift to the recipient. Popularization of the craft sector will need to assume two facets: (a) consumption in the domestic market, particularly, for giftware, needs to be specially targeted including among corporate business houses in the country as well as multi-national companies operating in India; and (b) crafts persons and their children will need to be encouraged and assisted, particularly at the formative stage as students, through appropriate curricula, hobby centers, stipends and scholarships. It is essential that due care is devoted to different, and crucial, aspects of quality, consistency, sustainability—with an eye on packaging, presentation as well as explanatory information on the characteristics of the product and the craftsman. Likewise, brand promotion needs to be focused as a major component to replace the poor perception of India as a supplier of low quality goods. A comprehensive study should be undertaken to assess the needs of leading retail chains including commercial channels and alternative channels, departmental stores, mail order houses as well as their buying procedures. Basically, it is communication information between buyer and seller to change attitudes and behaviour of consumers. Promotion-mix includes advertising, sales promotion, personal selling, publicity and packaging.

Advertising of handicraft:

Advertising is not undertaken by and respondent. The small scale operation of the artisans does not permit the craftsmen to undertake advertising of their products individually. For the promotion of handicrafts, the Corporation has been undertaking publicity, exhibitions, printing of brochures, and participation in trade fairs. The Corporation is also putting up hoardings in important places and centers to tourist interest, which would serve as a good medium of publicity. Other forms of publicity include participation in trade fairs, and sponsoring trade / study teams covering particular crafts to other States in the country.

Promotions in handicraft:

Sales promotion covers a wide range of techniques that provide an extra short-term incentive or inducement to patronize a store or buy a product. Techniques include demonstrations and exhibitions, samples, premiums, coupons, games and contests, displays and package inserts. In general, sales promotion is designed to reinforce the other factors of the promotion mix and to improve their short-term effectiveness.

MARKETING PROBLEM IN HANDICRAFT:

Artisans face several problems in marketing. In view of shortage of financial resources and small scale of operation; advertising publicity cannot be undertaken by artisans. Hence, it is suggested that the Corporation may increase advertising and publicity for all the crafts. The Corporation should save the artisans from the exploitative clutches of middlemen by purchasing handicrafts at remunerative prices from artisans by giving payments promptly. Lack of practical implementation of government policies and schemes to the handicraft exporters can also be one of the reasons for India’s low share in the world’s craft market. Most of the handicraft exporters are not very much aware of the happenings at the government’s end for the promotion of the handicraft industry.

Many schemes/initiatives are being introduced by the government for the promotion of the industry but with poor response from the exporters’ side because of lack of awareness among them. The most acute competition observed at the international level with other handicraft exporting nations is in the level of export incentives from their respective governments. Subsidies in the power, transportation, raw materials and duty drawbacks, etc places India’s competitors in a better position to deal with buyers. As compared to the level of subsidies and incentives from the governments of other competing countries, the Indian government has not pleased the handicraft exporters as much as compared to its competing international exporters by its incentives and subsidies on handicraft exports.

REDRESSAL MEASURES

In order to make handicrafts reach the top spot the following suggestions may be implemented.

Organizing marketing network of handicraft

Absence of systematic marketing network has been a discouraging factor in this region. In my opinion, the artisans must be organized by themselves under the co-operative umbrella for marketing their products by themselves. For this more and more linkages must be developed with outside parties.

Tourism-centred crafts:

For the crafts culture to be appropriately propagated and its commercial potential duly explored, development of tourism can go in tandem with the development of crafts. There is a great deal of scope for craft-centered tourism possibilities to be explored. An urban haat within the city may develop as a nucleus. The urban haat can be supplemented with an exhibition-cum-display centre and/or common facility centre for a crafts cluster. Likewise, around a rural haat, a complex of tourist interests can come up, where authentic and rural life along craftsmanship of the region can be displayed, crafts persons actually seen at work, providing a glimpse of how the rural crafts persons live, how they work, and how they turn out things of beauty and aesthetics. A complex of interest to tourists will necessitate minimum infrastructure to be developed and maintained with imagination, ensuring convenience of transport and cleanliness. Tourists should also be able to select and buy mementos and objects of crafts locally from such a complex. For this purpose, properly authorized and standardized outlets need to be set up at vantage locations.

Design registration of handicraft:

Design registration of handicrafts should be done. That means whatever designs any artisan has introduced on any item should be registered. Then no one can copy it.

Price uniformity in handicraft:

The prices of handicraft products are very much erratic and not uniform. There is significant difference in prices of the same article if purchase from two shops or from two places. In this situation the customer feels very much exploited and harassed. This might have very bad repercussion on the demand of the products. Pricing of the product should depend on categorization of art in each craft, skill exhibited and quality of raw materials.

Awareness creation:

The majority of artisans are not aware about various new schemes like loan at concessional rates, free tools, dyes and chemical, work shed-cum-housing facilities. The artisans should be made aware about the various welfare schemes and its implementation process.

More Research and Development in handicraft:

For improving the quality of the products Research and Development is a must. Many more new items and new designs can be developed with the help of Research and Development. Environmental problems need to be addressed. European nations are sensitive to toxin substance, e.g., cadmium in metal ware and azo dyes in textile crafts. Child labour is, no doubt, another emotive issue. Environment friendly packaging and general social and hygienic conditions are other important facets. These aspects can well be converted into opportunities as a conscious and aggressive campaign to enhance the acceptability of Indian products among affluent consumers susceptible to these considerations. Environment and conservation need to be woven into the concept. A number of items can be designed which will have both aesthetic and utility value, merchandise made out of material such as bamboo, wood, jute, terracotta, recycled paper and earth. The wood used in artifacts may be compressed out of wood shavings.

Role of technology:

Product innovation and improvements in design as well as manufacturing technologies occur in the formal sector of economy on a routine basis. In the case of the informal sector, the concept of product innovation remains subdued. With an introduction of modern technologies of design and product innovation, the change is necessary in informal sector so that the economy can be uplifted. In particular, the handicraft sector in India presents an appropriate case for introducing the tools of design and product development. It is felt that several segments of the handicraft sector will be benefited if such tools and products are available at an appropriate price. In order to overcome the cultural inertia of change, it is necessary to provide an appropriate environment of training and education. Since the economic size of this sector is large, any effort in the direction of technology improvement will yield significant dividends [2]. Technology transfer in different countries has benefited the handicrafts sector, e.g., Sri Lanka received technology from Japan, Philippines, China and Thailand in crafts like ceramics, rattan furniture, brass, cane and bamboo. Thailand’s teak industry has experienced a striking up gradation in technology obtained from Taiwan and South Korea. Again, for imitation jewellery, China imported technology from Taiwan and Korea. For brassware, Korea exported technology to China, e.g., for manufacture of picture frames. For toys and dolls, Korea and Taiwan provided technology to China and Thailand. In Taiwan, the light industries have tackled the problem of high wages: most of the traditional and modern handicraft manufacturing base has shifted to mainland China for goods of jade, chinaware, porcelain and modern ware. In the ASEAN, there has been a growth in the modern craft sector with an emphasis on mass scale factory production of giftware. China, Thailand, Philippines and Indonesia have improved their share in the toys and dolls sector. These countries, other than Indonesia, have also improved their exports of festive entertainment articles. China has been successfully exporting both traditional and modern craft items.

Foreign Collaboration with Designers and Artisans:

Foreign master designers may be invited to the design centers to render guidance to the craftsmen.

Value Addition in Handicraft:

The various specialized organization, like Development Commissioner (Handicrafts), may help the local units to produce various value added items with would not only help to penetrate the local market, but also help in exporting of such items to foreign countries.

Publicity in Handicraft:

To attract more and more buyers both within and outside the country, promotional and marketing organizations must give due emphasis on wide publicity of various local products. For this frequent buyers and sellers meets may be organized by promotional organizations.

Window Display of handicraft products:

In whatever possible manner, all the promotional and marketing organization, must display the local items in various airports, railway stations, bus stands, commercial centers, etc. This will help the local artisans to get more orders from foreign tourists, traders, marketing organization etc. Window display is emerging as the new mantra in retail and is fast changing from a dull, uninteresting exhibition of wares to a dynamic form of advertising. Retailers are recognizing the importance of window display as the first point of contact between the store and the customer and a chance to create the most critical first impression on the customer. Developed countries look at window display as a critical tool of marketing; however, in India, it is still an emerging concept. Done properly, window display can attract the right kind of customers to undertake impulse buying under the influence of attractive window display.

Positioning of handicraft products:

Handicrafts, which are produced with traditional skill, are gradually facing competition from machine made products, which give greater uniformity and better finish. For large number of handicraft items, there have been neither substitutes nor competition from any significant entrant into the field. Thus, suppliers, new entrants and substitute products do not appear to be significant factors in the strategic positioning of Handicrafts. By the process of isolation we come to the buyers and buyer groups. This also includes the middlemen and distribution chain. The economic vitality of a society over a period depends on the new products and processes introduced in that society. Some products and services survive, some products and services flourish and some products and services die out over a period of time. While all these events are taking place, people become entrepreneurs, start manufacturing and marketing, employ fellow citizens and generate wealth. In short, the economic life changes as newer products come into the market and the old ones die out. This churning goes on at a rapid pace in the urban society [10].

EXPORT OF HANDICRAFTS:

In addition to the high potential for employment for poorer section of the society in rural areas, the sector is economically important from the point of low capital investment, high ratio of value addition, negotiable import content and high potential for export and foreign exchange earnings for the country. If systematic efforts are made, some of the selective products could emerge as a major foreign exchange earner in the near future. However, before exporting of such items care should be taken on product identification, quantum of production, supply arrangements, price, delivery, quality, payment terms etc. India is one of the important suppliers of handicrafts to the world market. Although exports of handicrafts appears to be sizable, India's share in world imports is very small. Despite the existence of production base and a large number of craftsmen India has not been able to encase existing opportunities. The emergence of handicrafts sector as one of the sources of foreign exchange earnings for the country is evident from the data on international trade in handicrafts from India. (Figure 1). The export of handicrafts (other than hand knotted carpets) was merely Rs. 387.00 crores during the year of establishment of the Council i.e. 1986-87 rose to level of Rs. 23504.42 crores in year 2013-14 showing an increase of 30.80% over 2012-13 [1].

In the changing world scenario, craft products exported to various countries form a part of lifestyle products in international market. The impact is due to the changing consumer taste and trends. In view of this it is high time that the Indian handicraft industry went into the details of changing designs, patterns, product development, requisite change in production facilities for a variety of materials, production techniques, related expertise to achieve a leadership position in the fast growing competitiveness with other countries. The major buyers for handicrafts (other than carpets) are as mentioned in Table 2.

Key markets and export destinations:

Today, owing to the increase in the manufacture and export of handicrafts, Indian handicrafts have reached every part of the world. Country wise share (%) of handicrafts (excluding hand knotted carpets) for the year 2013-2014 is given in Figure 2. The major export destinations for Indian handicrafts include the following:

· In 2014–15, Indian handicrafts exports stood at US$ 4.5 billion, up approximately 15.4 per cent over the previous year’s exports. Exports of Indian handicrafts have increased at around 16.4 per cent since 2008–09.

· Indian handicrafts are exported across geographies, with the top 10 destinations being the US, the UK, the UAE, Germany, France, Latin American countries (LAC), Italy, the Netherlands, Canada and Australia.

· The US alone accounted for approximately 26.1 per cent of India’s total handicraft exports in 2014–15. It was followed by the EU, which accounted for approximately 24.7 per cent.

· The UAE was the third-largest importer of Indian handicrafts, with imports worth US$ 410 million in 2014–15.

Figure 2: Country wise Share (%) of Handicrafts (Excluding Hand Knotted Carpets) for the Year 2013-2014

Export Promotion Council for Handicrafts:

The Export Promotion Council For Handicrafts (EPCH) is the apex government body and operates 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 its promotional activities. The broad functions of the Council are:

· Providing commercially useful information and assistance to members in developing and increasing exports.

· Offering professional advice and services to members in areas of technology up gradation, quality and design improvement, standards and specifications, product development, innovation etc.

· Organizing visits of delegation of its members abroad to explore overseas market opportunities.

· Participating in specialized International Trade Fairs of handicrafts and gifts.

· Organizing Indian handicrafts and gifts fair at New Delhi.

· Interaction between exporting community and govt. Both at the central and state level and representation in almost all the committees / panels of central and state and represents in almost all the committees / panels of central and state.

· To create an environment of awareness through workshops on export marketing, procedures and documentation, packaging, design development, buyer seller meet, open house, interaction with central / state government and various other similar programmers.

· Dissemination of government notification, orders, information on trade and other relevant information to members.

Domestic Problems Impeding Exports:

India is one of the important suppliers of handicrafts to the world market. Although, exports of handicrafts appear to be sizable, India’s share in world imports is very small. Despite the existence of production base and a large number of craftsmen, India has not been able to encase the existing opportunities. It is generally stated that this is mainly because of the following reasons:

· The major craft concentration areas have problems of infrastructure. The delivery schedules cannot be maintained due to transport bottlenecks, power shortage, and lack of proper port facilities.

· The production and supply have continued to be inadequate due to non-availability of raw material for some of the important crafts.

· The quality and finish are not up to the mark due to non-availability of seasoning plants for wood and treatment of material plants for various crafts.

· Product development is not fully conceived.

The prospects for increasing handicrafts exports from India are bright provided the problems as being given under each category of crafts are acted upon immediately.

Selected Craft Pockets for Achieving Export Goal and Requiring Remedial Action:

Although each craft pocket has its particular problems, a few selected craft pockets are identified based on their past performance for immediate remedial attention to stimulate a quantum jump in exports of handicrafts in the coming years. The expertise and skills of the handicraft artisans/ manufacturers in these clusters have been passed on to them from one generation to the other. A list of clusters and their associated crafts which could be provided with immediate attention is given in the following Table 3.

THE GOVERNMENTAL INTERVENTION:

Although India adapted to liberalization policies in early nineties, the handicrafts sector continued to get state intervention. Handicrafts being a state subject defined in our constitution, the development and promotion of crafts are the responsibility of the respective state governments. The Central government through various developmental schemes plays the role by supplementing their efforts. The schemes envisage a package of need based support to artisans for integrated development of handicrafts clusters and to organize clusters into Self Help Groups for sustainable development. The government during 11th five-year plan, for the holistic growth and development of the handicrafts, has implemented few generic schemes which are discussed below [1].

(i) Baba Saheb Ambedkar Hastshilp Vikas Yojana: the basic objective of this scheme is for a sustainable development of handicrafts through the participation of craftsperson. This scheme is implemented through: (i) social intervention, i.e. Mobilizing the artists, (ii) technological intervention; assisting for design and technological up gradation, reviving the languishing crafts etc., (iii) marketing interventions and (iv) financial interventions.

(ii) Marketing Support and Service Scheme:

This scheme is developed to create awareness of Indian craft products among the people through: (i) organizing marketing events, (ii) providing services in the form of entrepreneurship and (iii) providing financial assistance to state handicrafts corporations and NGOs for opening new emporia, etc.

(iii) Design and Technology Up gradation Scheme: The scheme aims to supply modern tools, upgrade artisans’ skills, preserve traditional crafts and revive rare crafts through (i) departmental activities (by giving training in Regional Design and Technical Development Centres etc.) and (ii) outsourcing (to Shilp Gurus or Heritage Masters, of design and technology up gradation).

(iv) Export Promotion Scheme:

It intends to promote export of handicrafts, including hand knotted carpets and floor covering from India. The main components of this scheme are (i) product Development, (ii) publicity and marketing and (iii) social and other welfare measures.

(v) Research and Development Scheme:

The basic objective of this scheme is to create a regular system of obtaining feedback on economic, social, aesthetic and promotional aspects of various craft goods. It also addresses issues related to WTO. Survey or study of specific crafts on which adequate information is not available, looking at the working conditions of the artisans etc are the major thrust areas under this scheme.

(vi) Training and Extension Scheme:

The scheme aims at enhancing the capacity building of staff of Development Commissioner (Handicrafts), artisans, NGOs etc.

(vii) Bima Yojana for Handicrafts Artisans:

The Yojana implemented in association with the Life Insurance Corporation of India Limited provides life insurance protection to artisans, either male or female in the age group of 18-60 years.

(viii) Special Handicrafts Training Projects:

Under this programme, the office of the Development Commissioner (Handicrafts) takes initiatives to upgrade the skills of existing as well as new craft persons, enhance employment opportunities in the handicrafts sector, transfer skills of experts / master artisans to new trainees. Apart from the above schemes, the government is also taking special measures for promotion and development of crafts by popularizing the products and encouraging the artists. In terms of variety of handicrafts and celebrated craft products, India is one of the richest countries. The most important contribution to its craft heritage has been of the Shilp Gurus, the Heritage Masters, who have innovated, and contributed on their own to the traditional craft forms. They are in fact leading lights of handicraft sector and are sources of inspiration for the younger generations. Office of the Development Commissioner (Handicrafts), Ministry of Textiles, Govt of India has decided to honour ten Shilp Gurus, every year starting from the year 2002. Besides, the All India Handicrafts Board was established in 1952 to study the problems confronting the handicrafts, to improve and develop the production techniques and new designs to suit the changing tastes and to promote marketing in India and abroad [16, p.9]. But unfortunately most of the governmental schemes have failed to produce visible results. Since Handicrafts come under the state list, each state has set up its own handicrafts policy.

The states assist those crafts and artisans who have viable market and high export potential. The languishing crafts in turn suffer a lot. Inspite of several developmental schemes that exist for them, the craft persons are unable to reap the benefit as they lack the assets and strong institutions favouring their cause. So, the state governments should follow the Central government directives, utilize its funds, grants and loans and work for the development of craft goods taking sincere efforts. The biggest problem while implementing the developmental schemes is the lack of proper knowledge on handicraft units and number of artisans.

INDIAN HANDICRAFTS SWOT ANALYSIS:

Strengths:

· Availability of unique local raw materials e.g. natural fibers, bamboo, cane, horn, jute, leather, etc.

· Rich and diversified culture producing wide range of unique and exclusive handicrafts.

· Strong existing pool of skilled artisans.

· Wide range of traditional production skills derived from indigenous knowledge.

· High potential for empowerment of women, youth and people with disabilities.

· Low production costs

OPPORTUNITIES:

· Increasing emphasis on product development and design up gradation.

· Rising demand in domestic and traditional market.

· Rising appreciation by consumers in the developed countries.

· Government support and interest in preserving the craft.

· Emerging markets in Latin America, North America and European countries.

· Fair trade practices.

· Increasing flow of tourists provide market for products.

WEAKNESSES:

· Lack of design, innovation and technology up gradation.

· Highly fragmented industry.

· Unstructured and individualized production systems.

· Lack of strong umbrella sector organizations.

· Limited capitalization and low investment.

· Insufficient market information on export trends, opportunities and prices.

· Limited access to credit.

· Limited resources for production, distribution and marketing.

· Limited e-commerce competence among producer groups.

· Lack of adequate infrastructure, absence of latest technology

THREATS:

· Handicrafts sector is not mainstreamed in planning priorities of many State Governments.

· Increasing threat from Asian countries.

· Decreasing supply of good quality raw material.

· Better quality components, findings and packaging in other countries.

· Lack of quality standardization process.

· Declining investment in the sector (largely in the developed economies) and increasing consumer sophistication.

· Absence of institutional support.

· High freight costs associated with air cargo and shipment.

· High cost of production rendering Indian crafts less competitive in the markets.

CONCLUSION:

Craft is the standard mark of creativity and the essential differentiator for a country in the sweeping wines of globalization. Most importantly, craft has to become a fountainhead for both industrial design and communication design, for deriving the differential advantage of Indian design in the global market place. The handicrafts sector plays a significant and important role in the country’s economy. It provides employment to a vast segment of craft persons in rural and semi urban areas and generates substantial foreign exchange for the country. Handicraft is such a product that when a buyer likes it, he is prepared to pay a price, which may be far in excess of the standard price of the product. The prime consideration is his liking of the product. Channel agents, such as middlemen, retailer or distributor try to capitalize on such possibilities and earn significant profit almost wholly at the cost of the craftsmen. Handicraft product may be categorized on the basis of price, export on domestic market, ease of maintenance, ease of storage, utility value or decorative value and modernity or traditional orientation. Besides, it is necessary for likeminded institutions to come together to provide the strategic direction and action plans to evolve systems. Procedure and norms related to design, market, technology, innovation and quality of life so that product designs, technology and marketing become integral part of the craft up gradation and repositioning process. The sector has, however, suffered due to its being unorganized, with the additional constraints of lack of education, low capital, and poor exposure to new technologies, absence of market intelligence, and a poor institutional framework. It faces imminent threat from the growing clout of Chinese economy coupled with their cheap yet disciplined labour as also from superior quality products manufactured by developed countries. However Indian handicraft has great growth potential in the changing scenario with its basic strength being the abundant and cheap availability of manpower and being a traditional profession of millions still requires very low investment compared with other countries barring china.

REFERENCES:

1. Annual report. (2014), New Delhi: Ministry of Textiles, Govt. of India.

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Received on 10.11.2015 Modified on 26.11.2015

Asian J. Management; 7(1): Jan. –March, 2016 page 05-16

DOI: 10.5958/2321-5763.2016.00002.0

24.

Art metal ware	Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari, Mhanjavur, Madras, Manpad, Beedar, Kerala and Jagadhari, Jalesher
Wooden artwares	Saharanpur, Nagina, Hoshiarpur, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna, Madras / Manpad, Kerala and Behrampur (WB).
Hand-printed textiles	Amroha, Jodhpur, Jaipur, Farrukhabad, and Scarves Bagru and Sanganer.
Embroidered goods	Kutch (Gujarat), Jaisalmer, Baroda, Lucknow, Jodhpur, Agra, Amritsar, Kullu, Dharamshala/Chamba and Srinagar.
Marble and soft stone	Agra, Madras, Baster, Jodhpur. Crafts Papier Mache crafts : Kashmir, Jaipur
Terracota	Rajasthan, Madras, Baster.
Zari and zari goods	Surat, Amritsar, Agra and Varanasi
Imitation jewellery	Delhi, Moradabad, Sambhal, Jaipur, Kohima (Tribal)
Artistic leather goods	Indore, Kolhapur, Shantiniketan (West Bengal).

Art metal wares	USA, Germany, UK , Netherlands and UAE
Wood wares	USA, UK, UAE, Germany and France
Handprinted and textiles and scarves	USA, UK, Germany, UAE and Canada
Embroidered and crocheted goods	USA, UK, Germany, UAE and France
Shawls as artwares	UAE, USA, UK, France and Germany
Zari and zari goods	USA, UK, Italy, Germany and France
Imitation jewellery	USA, UK, Japan, Italy and Germany
Miscellaneous handicrafts	USA, Germany, UK, Japan and UAE

Cluster/ Production Centers	State	Craft
Moradabad	Uttar Pradesh	Art metal ware/ metal crafts and imitation jewellery
Jaipur	Rajasthan	Hand printed textiles, carpet
Jodhpur, Saharanpur	Rajasthan, Uttar Pradesh	Wooden handicrafts and wrought iron handicrafts
Srinagar and Anantnag	Jammu and Kashmir	Carpet, embroidery
Jaipur and Barmer, Farukabad, Bagh	Rajasthan, Uttar Pradesh, Madhya Pradesh	Hand printed textiles
Bhadohi, Mirzapur	Uttar Pradesh	Carpet
Agra, Varanasi, Bareilly and Surat	Uttar Pradesh and Gujarat	Zari and zardozi
Narsapur	Andhra Pradesh	Lace and crochet goods
Delhi, Jaipur	Delhi and Rajasthan	Imitation jewellery
Channapatna and Varanasi	Karnataka and Uttar Pradesh	Lacquer craft
Bastar	Chhattisgarh	Dhokra craft
Mahabalipuram, Bhubaneshwar, Agra and Varanasi, Jaipur	Tamil Nadu, Orissa, Uttar Pradesh, Rajasthan	Stone carving
Puri, Ahmedabad and Kutch	Orissa and Gujarat	Appliqué work
Puri, Jaipur, Bhuj and Pochampalli	Orissa, Rajasthan, Gujarat and Andhra Pradesh	Tie and Dye/ Batik crafts
Assam, Arunachal Pradesh, Tripura, Manipur in NER, West Bengal, Kerala		Bamboo and cane