Small Scale Handicraft Industry – Challenges

Indian traditional small-scale Indian handicrafts reflect our country’s rich heritage and real culture. The artists mold their art into shapes that can be passed down through generations, carrying a legacy of their land, story, and culture. Until the beginning of 19th-century industrialization, Indian craftspeople were highly valued and honored.

Small scale enterprises or industries, like many other fortune companies or larger enterprises, create a great number of job opportunities. As a result, it is critical to the economy of the country. These micro-businesses handicrafts rely on government tax policies and other business functions for support.

Not only does the industry hold the key to supporting the millions of artisans who already exist across the country, but it also has the key to sustaining the industry as a whole.

Micro handicraft businesses are used to manufacture things that are made entirely by hand or with the use of minimum equipment. It is an industry that has been providing value to the Indian economy and GDP for years. 

The economic impact of handicrafts

Small industry handicrafts offer a lot of promise for creating jobs and revenue in India, and they’re one of the most appealing aspects of the country, coming in a variety of shapes and materials.

For many developing nations, the small-scale industry of handicrafts represents an important productive sector and export item, and in certain cases, they account for a significant portion of the export economy. The expansion of worldwide markets for home accessory products, as well as increased interest in global commodities, has provided craftsmen with new market options.

The importance of Indian handicrafts cannot be underestimated. From generation to generation, the industry has provided employment to a vast number of artisans. The state of the industry in India has changed recently. Instead of more potential, the sector is experiencing a sharp drop in export activity.

You can also read: the importance of online review 

 Challenges faced by the small-scale industry – Handicraft

The scarcity and depletion of natural stocks of raw materials, the timely availability of raw materials and finance, the discontinuity of craft skills, poor social recognition of handicrafts, poor income, migration to other jobs, and hesitancy to use new technology are all problems that these industries face. 

  • Being in the trend of small-scale handicraft

Precision is the hallmark of handicrafts. They necessitate expert craftsmanship and years of experience. While Indian artisans are skilled at creating one-of-a-kind handcrafted items, they are finding it difficult to keep up with the latest trends. It could be due to a lack of financial resources to invest in new technical developments or a lack of expertise.

  • Use of old-techniques

Rural areas are home to India’s handicraft setup/community. Artists still use old-school techniques. Western patterns are impacting the preferences of Indian viewers as marketplaces become more globalized.

  • Physical exhibits and trade shows are less

For Indian artisans, pre-pandemic handicraft exhibits were a ray of hope since they allowed them to display their abilities and wares. The only way to engage with an audience outside of their region was to attend trade shows.

How to improve Handicraft small-scale enterprise

Handicraft has long been the backbone of India’s thriving rural economy, accounting for a large portion of the country’s exports.

  • Increase in Export of handicraft products

More than a hundred countries buy our handcrafted goods, with the United States having the lead in this matter, accounting for one-third of India’s total handicraft exports. Government initiatives that have cut the incentive rates on handmade goods exports from 7% to 5% have supported this trend.

  • Use of modern technology

Handicraft products have become more accessible to a wider audience thanks to technological advances. Small businesses have been able to communicate with a larger customer base thanks to e-commerce platforms like Amazon and Flipkart. 

  • Support of government

Various craftspeople were connected to self-help groups and diverse societies through collaborative schemes that benefited them in bulk manufacturing and making efficient economic decisions. It also aids craftspeople in hadicraft industry in obtaining raw materials for their creations. 


We believe that there are many talented people in this country. After years of practice, they have mastered their ancestral handcrafting tradition. They do not, however, have the proper platform to display their work. Small scale handicraft industry is a showcase for all the artists and crafters.

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