Government- For Handicraft Industry:

 Government schemes for Handicraft Industry:

(Article by: www.fullstopkart.com)

Due to the Covid19 pandemic, every Industry has been under economic stress. The handicrafts industry is no exception. On the other hand, we know Handicraft holiday destinations: Artisan Towns and Villages with Rich Handmade Traditions are under the cage of covid lockdown, due to which there is the low footfall of tourist business 

The Textile ministry looks after the Handicrafts sector vai, Office of the Development Commissioner for Handicrafts.
Under which,  Babasaheb Ambedkar Hastshilp Vikas Yojna (AHVY), is one of the government’s initiatives that has tried a lot to help our Handicraft sector.

  • The Government launched the Ambedkar Hastshilp Vikas Yojana (AHVY) in the year 2001-2002.

  • The scheme was launched to mobilize the artisans into Self Help Groups and train the groups on various aspects of forming and running the community business enterprises for the self-sustainability of artisans.

  • The salient features of the Yojana are as follows:

    • Baseline Survey & Mobilization of Artisans

    • Design & Technology Upgradation

    • Human Resource Development

    • Direct Benefit to Artisans

    • Infrastructure and Technology Support

    • Research and Development

    • Marketing Support & Services

Steps taken by the Government

(Research by: www.fullstopkart.com)

  • The Government organized Hastkala Sahyog Shivirs at more than 300 places all over the country for providing Aadhaar linked identity card, marketing facilities, facilitating to artisans through Mudra loan and enrolment of artisans under Pradhan Mantri Jeevan Jyoti Bima Yojana, Pradhan Mantri Suraksha Bima Yojana, and Aam Aadmi Bima Yojana for the welfare of artisans during the Hastkala Sahyog Shivirs.

  • The Government has identified and adopted 90 clusters across the country, covering aspirational districts, women clusters, weaker sections, and export potential clusters. The objective is to transform these clusters in a time period of 3 years by ensuring self-sustainment of the Self Help Groups/artisans of these clusters.

  • During the current financial year, 2019-20, the Government has taken initiative to organize the campaign to educate cluster artisans about the scope of a handicraft producer company, its importance for long term sustainable business development for the cluster, and motivate prospective artisans/Self Help Groups members to form producer companies in various cluster areas across the country.

 


Problems faced by Handicrafts Industry:
(Research by: www.fullstopkart.com)

  1. Raw material at a reasonable price is not available. Government schemes work on paper only, due to infrastructural problems (roads connectivity etc).

  2. Cannot compete with machine-made products because they lack marketing,  management, and sales expertise.

  3. No synergy between Government agencies responsible for handlooms, handicrafts, khadi, and the cottage industry sectors within the kingdom is Inefficient utilization of resources. Some people get double benefits (Handicraft+Handloom) schemes while others don’t get even one.

  4. The role of women in the handloom industry is largely unacknowledged.

  5. Artisans still rely upon local moneylenders. They charge a heavy interest rate, leaving the artisan in a vicious poverty cycle.

Financial issues:
(Research by: www.fullstopkart.com)

  • The Government has made many schemes to give them loans via Scheduled Commercial Banks, Cooperative Banks, Regional Rural Banks, etc. But,

  • These banks do not have branches in remote rural areas, particularly in North East and J&K.

  • Even where a bank branch is available, the needy people are unaware of the schemes.

  • They’ve to go through lengthy paperwork and repeated trips to the bank office, to get loan money is inconvenient for those living in remote areas.

 

Some more steps taken by the Government to boost and strengthen the handicrafts sector, which includes handmade carpets, to compete with machine-made products are as follows:
(Research by: www.fullstopkart.com)

  1. Market Development Assistance (MDA) Grant and Market Access Initiative (MAI) Assistance for participation in Fairs & Exhibitions/Reverse/Buyer-Seller Meets in India & abroad.

  2. Assistance provided by the Government for a marketing study, branding/International publicity, participation in Fairs & Exhibitions, Buyer-Seller Meet in India & abroad, etc. through Marketing and other Schemes.

  3. Thematic display and live demonstration of crafts by Master Craftspersons in exhibitions abroad.

  4. Brand image promotion of Indian handicrafts abroad through seminars and publicity as well as awareness programs in India.    

  5. Organizing Indian Handicrafts & Gifts Fair twice a year besides product-specific shows.

  6. Display of new design through exporters for creating awareness and marketing.

  7. To provide technical support to wooden crafts, a Technological Upgradation center has been set up in Saharanpur.

  8. To facilitate manufactures/ exporters for developing new design and finishing products, Common Facility Centres have been set up in Jodhpur and Saharanpur.

  9. The International Lace Trade Centre has been sanctioned in the Crafts Cluster of Lace & Crocheted crafts at Narasapur, Andhra Pradesh.

  10. Moradabad Resource Centre set up at Moradabad facilitates information relating to business development, word market trends, marketing, and publicity, and to cater to the changing tastes and requirements of the international market and remain abreast with the latest development.

  11. Setting up of Mega Clusters in Bhadohi-Mirzapur & Srinagar for increasing manufacturing and exports of carpets.

  12. Providing Skill Development Training for Carpets weaving.

  13. Providing financial assistance for running Carpet Weaving Training Centers in Bhadohi-Varanasi-Mirzapur areas for creating new Artisans/ Weavers with stipend.

 

  1. The Excise & Customs Duties paid for importing inputs are refunded through the Duty Drawback channel.

  2. Setting up of Indian Institute of Carpet Technology (IICT) at Bhadohi.

  3. Interest subvention and grant of MUDRA loan schemes to the handicrafts   artisans to compete with machine-made products



Few Suggestion By:
Planning Commission’s Committee, for 12th FYP

(Research by: www.fullstopkart.com)

  1. Create a Distress Relief Fund, to help weavers and artisans during various crises such as natural or manmade disasters, severe economic distress, and suicides.

  2. e-kiosks, a single-window based loan-clearance system via SIDBI and NABARD

  3. Artisan Credit Cards (ACC) should be promoted.

  4. The Pension Scheme should be introduced through the support of the National Social Security Fund.

  5. More funding for North Eastern Regions.

  6. Remove the artificial divisions between Khadi, Handicraft, Handloom, etc. that compartmentalize administration of common sectors. Just focus on a unified ‘Handmade in India’.

  7. Social welfare schemes should be strengthened for ensuring better living conditions for weavers, artisans, and ancillary workers.

  8. Women workers should be recognized as contributors and be included in various schemes/programs in their own individual capacities.

  9. Financial inclusion and financial literacy support programs.

Thank you
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