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

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.