HANDLOOMS AND HANDICRAFTS
INDIA LANDSCAPE
National Strategic Priority
- 9 Mega Handloom Clusters are under implementation in 8 states
- USD 120 mn is to be invested in handloom and handicraft sector over the next 5 years
- Assistance amounting to USD 2,218,800 has been released for 141 marketing events, and USD 1,248,000 has been released for various activities sanctioned to Mega Handloom Clusters under Comprehensive Handloom Cluster Development Scheme
- India has 744 handicraft clusters employing 10 mn people in the country
- As of 2022, the Ministry of Textiles has provided financial assistance of USD 9,192,000 to 91 Handloom Clusters
Sector Performance at the National Level
- Handloom weaving is one of the largest economic activities after agriculture providing direct and indirect employment to 35.23 Lakh weavers and allied workers. This sector contributes nearly 15% of the cloth production in the country and also contributes to the export earnings of the country. 95% of the world's hand-woven fabric comes from India
- India's textiles products, including handlooms and handicrafts, are exported to over 100 countries
- India's textile export is on the rise. India scaled its highest-ever exports tally at $44.4 Bn in Textiles and Apparel, including Handicrafts in FY 2021-22.
- The export of handicrafts (excluding handmade carpets) during FY 2024 was USD 1.8 bn
- Indian handicrafts are exported across the globe, with the top destinations being the US, the UK, the UAE, Germany, France, Latin American Countries (LAC), Italy, Netherlands and Canada
Rajasthan Landscape
Economic Performance:
Exports of Handicrafts has substantially increased by 111% in last 4 years, USD 1,058 Mn in FY 2021-2022
Sector Performance:
- Handicraft exports from Rajasthan, a leading contributor to India's handicrafts exports. In the year 2023-24, exports from the state between April to August were higher at around USD 91 mn against USD 82 mn clocked during the same period last year
- The state's blue pottery, marble handicrafts, hand-crafted brass items, miniature paintings, wooden artefacts and hand-printed textiles are famous all over the world.
- It exports blue pottery mainly to the Middle East and America, and miniature paintings and wooden handicraft items to the US and Europe.
Rajasthan: Value Proposition for Handloom and Handicrafts Investors
- Cotton: Rajasthan grows cotton, which is used in making various textiles, including traditional block prints and tie-dye fabrics.
- Wool: The state has a significant sheep population, providing wool for products like carpets, rugs (Durries), and woolen textiles.
- Brass and Copper: Rajasthan has access to brass and copper, which are used in making traditional utensils, decorative items, and jewelry.
- Silver: Rajasthan is one of the leading states in silver jewelry production, with silver being sourced locally and from other states.
Rajasthan has several handicraft clusters, each specializing in different types of crafts. These clusters are often supported by both government and private initiatives to enhance production quality and market reach.
- Jaipur: Known for block printing, blue pottery, and gemstone jewelry.
- Jodhpur: Famous for wooden furniture and handicrafts.
- Udaipur: Renowned for miniature paintings and marble carvings.
- Bikaner: Known for its camel leather products and intricately designed carpets.
All major locations in the state are well connected to domestic and export markets through multiple modes.
- Rajasthan provides access to around 40% of India's market in the neighboring states and also serve as an indispensable medium of transport between North-Indian states and the ports on the Western coastline of India
- Rajasthan has 3rd Largest network of national highways with 20 major National Highways, 2nd largest rail network in India , providing easy access to major ports such as Mundra Port and JNPT, nine Inland Container Depots, one Air Cargo Complex as well as seven airports with direct international and national connectivity.
- Further, over 58% of State's area within Delhi Mumbai Industrial Corridor (DMIC)
Rajasthan Skill and Livelihood Development Corporation (RSLDC) is the apex skill development body and is designated (Pre Departure Orientation Training Program) PDOT partner with the Ministry of External Affairs. The corporation has its PDOT centres in Jaipur, Sikar, and Nagaur to enhance the soft skills of migrant workers.
- Universities: There are 52 private universities and 31 state funded universities and 1 Central University
- Central Government Institutes: around 15 institutes such as Central Sheep & Wool Research Institute, etc.
- Technical Institutes: The state is home to numerous technical institutes, including prestigious ones like the Indian Institute of Technology (IIT) Jodhpur and Indian Institute of Management, Udaipur, Indian Institute of Information Technology (IIT) - Kota
- Highly skilled young talent emerging from institutes such as NIFT Jodhpur, Indian Institute of Crafts & Design (IICD) – Jaipur, Indian Institute of Handloom Technology (IIHT), Jodhpur,
- Availability of Manpower - Pool of a large young trained workforce with 62% of Indian population in the working age group of 15 to 59 years
Policies & Incentives
Rajasthan Handicrafts Policy 2022
Daily Allowance for participation in Fairs and Exhibitions
- Rural and Urban Haat - INR 450 per day
- Other places in the State - INR 450 per day
- Outside the State - INR 600 per day
Stall Rent
- Assistance to the tune of 50% of the Stall Rent, up to a maximum of INR 5000 and annual total assistance up to INR 25,000 provided.
Financial Assistance
- 100% of the interest on loans up to INR 3 lakhs taken by artisans of the handicraft sector borne by the Government
Assistance for e-Marketing and Publicity & Promotion
- On creation of Website/Facebook Page for publicity, promotion and e-Marketing of the handicraft and handloom products by handloom weavers, artisans, Weaver Cooperative Society or Handicraft Society/Institution, an assistance of up to INR 25000 is provided.
Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Act, 2019
- Exemption from Approvals: MSMEs are exempt from obtaining certain approvals and inspections required under various state laws for a specified period.
- Simplified Procedures: The Act simplifies the process for setting up and operating MSMEs by reducing bureaucratic hurdles.
- Single Window Clearance: A single window clearance system is in place to facilitate quick and efficient processing of applications and approvals.
- Support for Inclusive Growth: The Act aims to promote inclusive economic growth and employment generation by supporting MSMEs.
Ease of Doing Business
- RajNivesh portal provides a single point, online interface and a time-bound clearance system by acting as a one-stop information / registration / approval / tracking centre for clearances & approvals
- The platform integrates 120+ services across 14 departments, emphasizing the state's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development
- Automated Processes: Automated systems for services like registration, licensing, and bill payments.
- Reduced Compliance Burden: Simplified labor laws, environmental clearances, and other regulatory procedures.
- Dedicated Teams: Specialized teams for investor support, handholding, and facilitation.
Opportunities
Tourism-Driven Demand
- Souvenir Market: With Rajasthan being a major tourist destination, there is a demand for traditional handicrafts and handloom products as souvenirs.
- Cultural Tourism: Tourists are increasingly interested in experiential travel, including workshops and tours of artisan villages.
Export Potential
- Global Market: Rajasthan's handicrafts and handlooms are well-regarded internationally, with significant export opportunities for products like textiles, pottery, jewelry, and wooden crafts.
- E-commerce Platforms: Online marketplaces offer a global platform for artisans to sell their products without intermediaries, reaching a wider audience.
Sustainability and Eco-Friendly Trends
- Natural Materials: Increasing global demand for eco-friendly and sustainable products offer opportunities for handicrafts made from natural materials like clay, wood, and natural fibers.
- Sustainable Practices: Promoting sustainable practices among artisans can attract environmentally conscious consumers.
Corporate and Institutional Demand
- Corporate Gifting: Handicrafts and handloom products are increasingly popular as corporate gifts, offering a significant market.
- Interior Décor: Hotels, resorts, and institutions in Rajasthan and beyond often seek traditional crafts for interior decoration, creating bulk demand.
Major Players in Rajasthan
