An Analysis of Current Scenario and Contribution of Handicrafts in Indian Economy

Abstract

Handicrafts plays an important role in the development of Indian economy in general and rural economy in particular. It is a labour intensive and eco friendly sector with huge potential of employment generation and foreign exchange earnings. But due to globalization it is facing tough competition with machine made low cost substitutes. Keeping in view the importance and challenges of this eco friendly, less demanding capital but immediate and good returns industry Government should provide maximum assistance at minimum cost. This will help in the sustainable growth in the long run and also will increase its contribution in the employment generation, foreign exchange and the over all socio economic development of Indian economy.

Key words: handicrafts, employment, artisans, foreign exchange rate