Handicrafts and traditional industries have long been pillars of India’s cultural and economic identity. They represent the confluence of creativity, heritage and livelihood—often serving as the backbone for millions of artisans across the country. In recent years, their role in economic development has received renewed attention due to their potential in generating employment, supporting sustainable development and preserving cultural heritage.
Handicrafts encompass a wide range of products made by hand or with simple tools, often reflecting the traditions and culture of a region. These include textiles, pottery, woodwork, metal crafts, embroidery, leatherwork and more. Traditional industries, such as handloom weaving, carpet making and artisanal mining, also fall into this category, forming a substantial part of India’s unorganised sector. These industries are predominantly rural-based, relying on age-old skills passed down through generations. They require low capital investment but offer high labour absorption, making them a vital tool for inclusive growth.
India is one of the largest handicraft-producing countries in the world. According to the Ministry of Textiles, the Indian handicrafts sector employs over 7 million artisans directly and indirectly, many of whom are women and from marginalised communities.Handicrafts offer sustainable employment, especially in rural and semi-urban areas where modern industries are sparse. They absorb a large portion of the workforce with minimal training.
Indian handicrafts enjoy significant demand in international markets. In 2022–23, the sector generated over ₹25,000 crore in export earnings, showcasing India’s soft power globally. By supporting traditional industries, India retains its cultural identity and keeps centuries-old skills alive, which could otherwise be lost to modernisation. A significant proportion of artisans are women, especially in textiles, embroidery and pottery. These industries empower women economically and socially. Most handicrafts are eco-friendly and made using natural, locally sourced materials, aligning well with the goals of sustainable and green economic growth.
The region of Jammu and Kashmir, particularly the Kashmir Valley, is globally renowned for its exquisite handicrafts that reflect a rich blend of Persian, Central Asian, and Indian influences. Crafts like Pashmina shawls, Kashmiri carpets, papier-mâché, walnut wood carving and intricate needlework are not only culturally significant but also economically vital, employing over 3.5 lakh artisans. In a region marked by political instability and limited industrial development, these crafts offer a crucial livelihood source and act as cultural ambassadors for Kashmir on the global stage. The handicraft and traditional industries sector, though rich in potential, faces key challenges such as limited market access, outdated branding, exploitation by middlemen and inadequate government support. Innovation and design upgradation remain limited, while rising raw material costs add to the burden. In Kashmir, these problems are intensified by political instability and poor infrastructure, further hindering the growth and sustainability of the sector.
For handicrafts and traditional industries to realise their full economic potential, a multifaceted approach is essential. Policy support and funding must be strengthened by enhancing schemes like the Ambedkar Hastshilp Vikas Yojana and promoting microfinance access for artisan clusters. Skill development and innovation should be prioritized through the establishment of design schools and training programs that blend traditional craftsmanship with modern market demands. Digital empowerment is equally crucial—platforms such as Government e-Marketplace, Amazon Karigar and Flipkart Samarth can help artisans reach broader audiences and eliminate middlemen. Protecting unique crafts through Geographical Indication tags, such as for Pashmina and Sozni embroidery, will help preserve authenticity and prevent imitation. Finally, integrating crafts with tourism—particularly in culturally rich regions like Kashmir can create experiential markets that support artisans and attract conscious consumers.
Handicrafts and traditional industries are more than just economic activities, they are living traditions that enrich India’s cultural and social fabric. In a country as diverse as India and especially in regions like Kashmir, they represent resilience, creativity and identity. With targeted support and inclusive policies, this sector can be a powerful engine of economic development, sustainable employment and cultural diplomacy in the globalised world.
