These products offer great opportunities for employment and have become an important means for foreign earnings. The handicraft industry in India is quite labor-intensive, decentralized and cottage based. It is spread around the whole country, mainly in rural areas and small towns. Also, this industry is a key income source for the rural people, including a large portion of men and women belonging to weaker sections of Indian society. The handicrafts industry of India plays a very essential role in the Indian economy and contributes greatly to the Indian economy’s success.
Strengths of Handicrafts Industry:
- Large, potential and diversified market.
- It has a strong, supportive and diversified retail infrastructure.
- There are a big product range and variety available due to diversified culture.
- The diversified product range that caters to different market needs.
- Need low capital investments.
- Cheap labor rates which result in competitive prices.
- There is quite a flexible production.
- Low barriers of newer entry.
Important Success Factors and Advantages:
- Easy development and creation of production centers.
- The industry provides possible sources of employment.
- There is no requirement for macro-investments.
- The products are high value-added, and the handicrafts have different applications.
- It’s a possible source of foreign revenues because of its higher export demand.
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