HANDLOOMS AND HANDICRAFTS
INDIA LANDSCAPE
- As of 28 February 2025, 794 handloom clusters had been taken up under the Small Cluster Development Programme, with financial assistance of ₹618.96 crore.
- As of 28 February 2025, 10 Mega Handloom Clusters had been taken up for financial assistance of ₹204.22 crore, benefiting 1,59,583 weavers.
- India’s handloom sector provides livelihood to 35.22 lakh workers, including 26.74 lakh weavers, according to the Fourth All India Handloom Census 2019-20.
- More than 72% of handloom workers are women .
- India’s handicraft exports, excluding hand-knotted carpets, stood at ₹32,758.80 crore in FY2023-24 under EPCH’s 179-HS-code export series.
Rajasthan Landscape
Sector Performance:
- Rajasthan’s has nominal GSDP of ₹12.18 lakh crore in FY2021-22, with growth of 19.50%, and ₹14.14 lakh crore in FY2022-23, with growth of 16.04%.
- Handicrafts exports from Rajasthan - ₹8,639.63 crore in FY2025-26
- Rajasthan’s craft economy supports approximately 6 lakh artisans and craftspeople. Also, 1.83 lakh Pehchan IDs, 60,000 State artisan cards and 11,500 weaver cards.
- The State is known for hand-block printed textiles, blue pottery, wooden and metal handicrafts, marble and stone craft, miniature and Pichhwai paintings, leather craft, jewellery and traditional weaving.
- Major craft and export centres include Jaipur, Jodhpur, Udaipur, Barmer, Bikaner, Sanganer, Bagru, Nathdwara and the Rajsamand–Makrana belt
- Rajasthan’s exporters are supported by national and state-level organisations such as EPCH, FIEO, GJEPC, AEPC, FORHEX, Jodhpur Handicrafts Exporters Association and GEAR, which promote market access, buyer-seller linkages, participation in trade fairs, export facilitation and industry representation.
Rajasthan: Value Proposition for Handloom and Handicrafts Sector
- Wool: Largest producer of wool, with a 47.85% share in 2024-25.
- Cotton: 5th largest State in cotton production, with 18.45 lakh bales in FY25
- Brass and Copper: 30.85% of India's copper comes from Rajasthan, used for making traditional utensils, decorative items, and jewellery.
Rajasthan's handicraft clusters, each specializing in different crafts, are supported by the Government and private initiatives to improve quality and market reach.
- Sitapura Industrial Area (Jaipur): A premier industrial and export zone housing numerous wooden article manufacturers, textile units, and export houses.
- Boranada Industrial Area & Handicraft SEZ (Jodhpur): Jodhpur is globally recognized as a major hub for carved wooden furniture, wrought iron, and handicrafts, featuring a dedicated handicraft Special Economic Zone (SEZ) and export promotion infrastructure.
- Craft clusters: Jaipur, Jodhpur,
Udaipur, Bikaner.
- Jaipur: Known for block printing, blue pottery and gemstone jewellery
- 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
- Kunda Craft Village near Amer: the village is a cluster designed to support the local pottery and craft community, it is characterized as a "Potters' Mohalla."
- Shilpgram, Udaipur: West Zone Cultural Centre (WZCC) was the first centre to set up the ” Shilpgram – A Craft Village “, in Udaipur. There are 31 huts representing architecture, traditional arts and culture.
All major locations in the state are well connected to domestic and export markets through multiple modes.
- Huge Market:
- Area:342,239 sq. km (largest in India)
- Share of India's geographical area: ~10.4%
- Population: ~82 million, providing a large workforce and consumer base.
- Well-Connected:
- Access to ~40% of India’s Market
- 39% of DFC pass through Rajasthan
- 58% of the State under DMIC
- Through Air: Direct connectivity to 20+ domestic destinations and key international hubs such as Dubai, Abu Dhabi, Sharjah, Muscat, and Bangkok
- Strong Infrastructure
- 440+ Industrial Parks
- 30+ Sector Specific Parks
- 10 ICDs in the State and 1 Air Cargo Complex
- Rajasthan offers a strong talent and design ecosystem with over 80 universities and premier institutions such as IIT Jodhpur, IIM Udaipur, NIFT Jodhpur, IIHT Jodhpur, IICD Jaipur, BITS Pilani and other leading technical and design institutes that support innovation, craftsmanship, design development and skilled manpower for the handloom and handicrafts sector
- Rajasthan’s artisans and enterprises are supported by institutions such as the Development Commissioner (Handicrafts), RAJSICO, RUDA, Khadi and Village Industries Board, Weavers’ Service Centre Jaipur, MSME-DFO, NSIC, ECGC and Export Inspection Council, providing support across artisan development, skilling, enterprise facilitation, finance, quality assurance, marketing and exports.
- Access to a readily available workforce at competitive wage rates.
Policies & Incentives
Rajasthan Investment Promotion Scheme (RIPS) 2024
Asset Creation Incentives (ACI)
- Investment Subsidy (SGST Reimbursement) -75% of the State tax due and deposited for a period of 7 years OR
- Capital Subsidy -13-28% of EFCI* to be disbursed in annual instalments over 10 years OR
- Turnover Linked Incentive -1.20% - 2.0% of Net Sales Turnover to be disbursed annually for 10 years.
Special Incentives
- Employment Booster -10% - 15% booster on chosen Asset Creation Incentive.
- Training & Skilling Incentive - Skilling support in form of a Training Subsidy of Rs. 4000 per worker per month for 6 months for training delivered in Rajasthan.
Exemptions
- 100% Stamp Duty
- 100% conversion charges
- 100% exemption of Electricity duty for 7 years
Additional Incentives
- Sunrise Booster- 25% Sunrise booster on top of the ACI chosen OR
- Thrust Sector Booster - 10% Thrust Booster on top of ACI chosen OR
- 5% Interest Subsidy for period of 5 years OR
- Anchor Booster - 20 % Anchor booster on top of ACI chosen
Customized Packages
- Investment of more than Rs. 500 cr - Option to redistribute benefits among ACI (Capital, TLI and SGST reimbursement).
- Investment of more than Rs. 1000 cr and employment of more than 800 persons - Customization on a higher NPV of the Asset Creation Incentive upto 20% of the NPV of the chosen ACI.
Other unique features
- The State will also allow telescoping and upgrade the earlier set of incentives paid on a lower slab basis the total incentives applicable, once the full investment is completed.
- If a group/cluster of enterprises within the same or nearby premises (within 50 km radius), come in with a consolidated investment proposal, then it shall be eligible for cluster incentives.
Rajasthan Micro, Small and Medium Enterprises Policy, 2024
- For the execution of this Act, the Government of Rajasthan launched a web portal on 12th June 2019 for filing applications.
- Issuance of 'Acknowledgement Certificate' up on submission of 'Declaration of Intent' electronically or physically to the nodal agency.
- On basis of said certificate an MSME unit is exempted from approvals and inspections under all State laws for 5 years from the date of issuance of the Acknowledgement Certificate.
Ease of Doing Business
- RajNivesh portal provides a single point, online interface and a time-bound clearance mechanism by acting as a one-stop information / registration / approval / tracking centre for clearances / approvals.
- The platform integrates 190+ services across 18 departments, emphasizing the State's commitment to the implementation of investor-friendly policies that enhance ease of doing business and promote sustainable development.
Opportunities
Opportunities across multiple Handloom and Handicraft segments are available in the state.
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
