HANDICRAFT
Introduction
Handicrafts are unique expressions and represent a culture, tradition and heritage of a country. The Handicraft Industry is one of the important productive sectors. 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 Symposium on “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.
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.
Classification:
Handicrafts industry comprises diversified products portfolio and there is large variety available in market. Handicrafts products can be distinguished into following:
Metal ware, Wood ware, Hand printed textiles, Embroidered and crocheted goods, Shawls, Carpets, Bamboo products, Zari goods, Imitation jewellery, Paintings, Earthenware, Jute products, Marble Sculpture, Bronze Sculpture, Leather Products and other miscellaneous handicrafts and innovativeness with the uniqueness in industry.
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.
google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad);
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.
google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad);
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.
In India, handicrafts are distributed through following major Distribution Channels[/b]:
Retailers/Direct Sales[/b]:
This is the most common distribution channel for selling handicrafts in India. In India there are large number of retailers who provides wide range of handicrafts products.
Wholesalers/Distributors:[/b]
Apart from retail and direct sales channels, wholesalers and distributors also provide large range of handicraft products. Wholesalers can keep product stock in bulk and can sell direct to final consumer or retailer.
E-Commerce:
[/b]Internet has emerged as a one of the promising distribution channel for selling the handicrafts products. It is estimated that internet will be one of the major channel for the distribution of handicrafts products through E-Commerce.
All India Handicrafts Board:
The All India Handicrafts Board was established in 1952 to suggest various solutions for improvement and development in Handicraft Industry. Formulation of Plans, Assistance to State Govt. for planning and execution of schemes, and providing assistance for Marketing, Financial, and Organizational aspects of Handicrafts Industry.
State and Union Territories:
Every State and Union territories has different department for the development of Handicrafts Industry. Marketing, Promotion, Financial Aid to Small Scale Industries, and other programs are the functions of State level corporations.
Central Corporations:
The Handicrafts and Hand looms Export Corporation of India: It was established in 1962. Exports Promotion, Development of potential market execution of Whole Sale and retail Orders are major functions of organization.
google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad);
The Central Cottage Industries Corporation Pvt. Ltd.:
It is a registered society that runs Central Cottage Industries Emporium in New Delhi, Mumbai, Kolkata, Chennai to sell the Handicrafts products.
The All India Hand loom Fabrics Marketing Cooperative Society Ltd.:
This Cooperative Society is supported and promoted by All India Hand loom Board. It has various hand loom emporiums in all metro cities, Chandigarh, Ahmedabad, Hyderabad etc. and few branches in New York, Singapore etc.
All India Organizations:
All India Textile Handprinting Industries Federation:
1106 Prasad Chambers, Swadeshi Mill Estate, Mumbai, India.
All India Federation of Zari Industry:
Safe Deposit Chambers, Surat, Gujarat, India.
All India Carpets Manufacturers Association:
Post Box No. 63, Bhadohi, District Varanasi, Uttar Pradesh, India.
Export Promotion Organizations and Councils:
The All India Handicrafts Board (West Block VII, R.K. Puram, New Delhi- 110022):
This organization is responsible for Export Promotion, Market Development, and Arranging Exhibitions etc.
The Gem and Jewellery Export Promotion Council (D-15, Commerce Centre, 4th Floor, Tardeo Road, Bombay- 400001):
This Organization is responsible for the promotion of Jewellery, Diamond, Stones, Pearls craft of the country.
The Handicrafts and Handlooms Export Corporation of India (Jawahar Vyapar Bhavan, Anex-I, Tolstoy Marg, New Delhi 110001:
It is Govt. undertaking and responsible for exports efforts of private sector promote Indian Participation in International Exhibitions.
The Handloom Export Promotion Council (123, Mount Road, Chennai- 600006):
It works for the export promotion of Indian Handlooms in the country.
The Indian Institute of Foreign Trade:
It provides Training Courses and publishes various survey reports.
The Trade Development Authority of India:
(Bank of Baroda Building, 16 Parliament Street, New Delhi- 110001).
The Export Credit Guarantee Corporation (Express Towers, 10th Floor, Nariman Point, Bombay-400001):
It provides exports credit intelligence, covers against various risks.
The Export Inspection Council (14/1-b Erza Street, World Trade Centre, Calcutta- 700001):
It is responsible for Quality Control Issues, and Pre-shipment Act.
The Federation of Indian Export Organization (Allahabad Bank Building, 17 Parliament Street, New Delhi-110001) The Trade Authority of India (Pragati Maidan, New Delhi-110001):
It was started in 1977 and works for exports and trade promotion and development.
Private Organizations/Promoters:
Calcutta Puppet Theatre (20, Bijan Setu Ballygunge, Calcutta 700 019, West Bengal)
Indian Arts Theatre (No. 2283, Sector 35-C, Chandigarh, Punjab)
Indian National Trust of Art and Cultural Heritage (Tamil Nadu Chapter)
855, Mount Road, Madras 600 002, Tamil Nadu; Phone - 838111, 4918943
The Indian Handicraft Industry stands a unique place among all other industries. It represents the rich culture, tradition and heritage of India. India’s rich cultural diversity and heritage provides a unique and huge resource for developing craft products. The Indian Handicraft Industry is showing continuous growth rate of 20% every year and it is one of the most important segment of decentralized sector in India.
Most of the part of industry operates in rural and semi urban areas throughout the country and have large and potential in Indian & International market. Indian Handicraft Industry provides wide range of products because of country’s diversified culture, traditions and heritage. There is huge demand of Indian Handicraft products in international market. Industry provides ample opportunities for employment to people belonging to backward and weaker classes of society.
However, Indian Handicraft Industry has the status of cottage industry in India, but it has shown promising growth and evolved as one of the major revenue generator over the years. It has shown continuous growth at the rate of 15-20% over the years and contributes major role for export and foreign earnings.
google_protectAndRun("ads_core.google_render_ad", google_handleError, google_render_ad);
Low capital investment, Cheap and skilled labor, Diversified product portfolio, Flexible Production are few important features of Indian Handicraft Industry. However, Lack of Infrastructure & Technological support, Lack of awareness of international and new trends and Poor Promotional campaigns are a few drawbacks of industry which needs to be overcome. It is estimated that Handicraft Industry in India is all set to grow with rapid rate in future and contribute its share towards economic development handsomely.
Industry Analysis
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 is 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 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 labour 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 Hough 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.
Key Facts of Indian Handicrafts Industry
India’s rich cultural diversity and heritage provides a unique and huge resource for developing craft products.