ODOP: Handicraft Sector

GS Paper – 2 Government Policies & Interventions, Growth & Development.

Why in the news?

What exactly is the One District One Product?



What is the state of India’s handicraft industry?



The Sector’s Importance:

It is one of the major job creators after agriculture, providing a vital source of income for the country’s rural and urban populations.

Handicraft is one of the most important industries in India, employing around seven million people.

The industry is well known for being a pioneer of environmentally friendly zero-waste methods and operates on a self-sustaining business model, with craftspeople often growing their own raw materials.

Artisans confront problems such as a lack of capital, a lack of technological penetration, a lack of market information, and a weak institutional foundation for growth.

Furthermore, the sector is afflicted by the underlying contradiction of handmade items, which are often at conflict with manufacturing scale.

What Factors Encourage Sector Growth?

  1. Government Schemes:

The national government is actively working to grow the industry so that it can reach its full potential.

Several plans and initiatives are being implemented to assist artisans in overcoming the obstacles they encounter.

  1. The Emergence of Dedicated Trade Platforms:

Few platforms, such as Craftezy, have developed to assist Indian craftsmen in gaining awareness in domestic and global markets.

These worldwide handicraft trade platforms provide a free supplier induction procedure and strive to give the global market an orderly appearance.

  1. Using Technology to Promote Inclusion:

Technology that allows people to communicate across borders has proven to be a godsend to the handcraft sector.

E-commerce has given seamless access to consumer goods, enabling inclusive growth because all manufacturers from any area of the world can present their items through these online platforms.

Even social media platforms are assisting in the global marketing of Indian handicrafts.

  1. Imports vs. Exports:

Over the previous five years, exports of Indian handicrafts have increased by more than 40%, with three-fourths of all handicrafts exported.

Indian handicrafts are heavily exported to over a hundred nations, with the United States alone accounting for around one-third of India’s handicraft exports.

  1. Changes in Artisan Behavior:

To increase their revenue, artists learn new skills and develop goods that match changing market demands.

As a result of the introduction of technology and the comfort it brings to their table, there is a substantial change in the behaviours of handcraft vendors and customers.

What are the Government Initiatives Involved?

Ambedkar Hastshilp Vikas Yojana:

Mega Cluster Plan:

Marketing Assistance and Services Scheme:

Scheme for Research and Development:

National Development Program for Handicrafts:

Comprehensive Cluster Development Scheme for Handicrafts:

Handicrafts Export Promotion Council:

The Way Forward