This is to certify that NEHA KANWER JADON

student of class XI COMMERCE has satisfactorily

completed her project on analysis of “VISIT TO
HANDICRAFT UNIT”given for the purpose of
economics examination her own and under my
guidance and supervision. Her Hardwork,sincere
efforts and keen interest regarding her project have
made it successfully.
 I wish to express my sincere gratitute to
our principal SISTER PRIYA for providing me an
opportunity to do this wonderfull project on the topic
“VISIT TO HANDICRAFT UNIT”. I sincerely thank Mrs.
SIMMI METHUEW for their guidence and
encouragement and carrying out this project work. I
also wish to express my gratitude to my friends, who
rendered their help during the period of my project
work. Last but not list I would like to thanks our my
friend and respondent for thr support and willingness
to spend more time with me to fill this questionnaire.
 S.NO. TOPIC
1. Introduction
2. Objective
3. Questionnaire With
Analysis and Interpretation
4. Recommendation &
Suggestions
5. Conclusion
6. Bibliography

HANDVVVVVTo build the

environment that will focus on: Wealth
Creation Development, Training,
 Introduction
Handicrafts are those objects, which require skill
with hands, or in other words, they are man-made.
Basically, a product solely made by human hands
without using any kind of complicated machinery or
equipment is called handicraft. A simple dictionary
meaning of handicraft is "an art or craft needing skill
with the hands". It is the practice of making decorative
of functional objects, wholly or partly by hand, and
requiring both manual and artistic skill.
According to the encyclopedia Britannica
"Handicraft is the occupation of making by hands
usable products graced with visual appeal. Handicraft
includes such activities as needle work, lace-making,
weaving, printed textile decoration, basketry, pottery,
ornamental, metal working, jewelry, leather working
and wood working and such crafts as glass blowing and
the making of stain-glass that requires complex
facilities."
Handicraft is the method of doing or construction
an object or device usually by hands and with native
materials. A term that seems to combine arts and
crafts is known as handicraft.
According to the definition formulation by
UNCTAD, "The term hand make article reflects to the
articles or the group of articles or the group of articles
which is being produced mainly with the help of these
tools or instruments, are used by the artisans in
making handicraft goods which are of simple kind and
which are used by the help of artisans hand or feet,
can be called as handicraft."
Therefore, we can say that handicraft is an
occupation that involves making usable or decorative
products by hands.
 OBJECTIVE
 As the handicraft occupation is one of the main
sources of generating the foreign currency, it is
very necessary to know why it is declining. The
main objective of this study is to focus on the trend
of Nepalese Handicraft Products sales.
 To show the main problems of this declining result
of the selling of the Handicraft products of Nepal to
the international market. Co
 To recommend the possible alternatives of
developing and promoting the Handicraft
products of Nepal. nder the category of
traditional small scale
industries.
Not registered under the factory act.
Investment in fixed assets does not exceed Rs.
60
lakhs.
Steady supply with timely delivery plan.
Apart from good quality, good designs are an
important factor.
e-commerce used as promotional tool.

QUESTIONNAIRE WITH ANALYSIS

& INTERPRETATIONb online apart
from fax anelephonically.
“to1. When respondents were asked about the Market
of sale of handicraft’s product is domestic market or
foreign market or both then following responses were
obtained.
Market Organization’s
sale
Domestic 1
Foreign 2
Both 2
domestic
& foreign

Domestic
Both
20%
domestic &
foreign
40%
Foreign
40%
 According to this, 40% of the organization sale in
foreign market & 40% of the organization sales in both
foreign and domestic market. Whereas, only 20% of
them sales in domestic market.

2. When respondents were asked about the Availability

of Raw Material then following responses were
obtained
Raw material Organizat
availability ion’s
through choice
Producing by 0
yourself
Order 4
Vendor 1
contract

Availability of raw material

Producing by
yourself
Order

Vendor contract
 According to this, 80% of the organization get the
raw material on order basis from outside whereas,
20% of the organization get the raw material from
vendor contract. None of the organization produce raw
material by themselves.

3. When respondents were asked whether their Need

of finance of purchase of raw material is same as
before recession or no change in their need then their
response is.
Need of finance Response
Earlier before recession 0
After recession 2
No change in need 3

impact of recession on need of

finance
3.5

3
no. of organization

2.5

1.5

0.5

0
Earlier before After recession No change in need
recession recession
 According to this, 60% of the organization have make
no changes in the need of finance of purchase of the
raw material after recession. Whereas, 40% of the
organization have in need of the finance for the
purchase of the raw material after recession.
4. When respondents were asked about the duration
of recession then their responses are
Duration of recession Response
Still facing 1
Overcome 3
Not faced yet 0
No such prominent impact 1

duration of recession
no. of organization

3.5 3
3
2.5
2
1.5 1 1
1
0.5 0
0
Still facing Overcome Not faced yet No such
prominent
impact
responses

According to this, 20% of the organization states that

they are still facing the effect of the recession & 20% of
the organization says that they have no such
prominent impact on the organization of the recession.
Whereas, 60% of the organization states that they had
overcome the effect of the organization.

5. When respondents were asked whether they have

any chances of recovery in the period of recession
then their response is

Chances of Response
recovery
Already recovered 1
More chances 4
Less chances 0
No chances 0

chances of recovery
no.of organization

4.5 4
4
3.5
3
2.5
2
1.5 1
1
0.5 0 0
0
Already More chances Less chances No chances
recovered
response

According to this, 80% of the organization states that

there are more chances of recovery from the
recession. Whereas, 20% of the organization says that
they had already recovered from this situation, none of
the organization was in level of less chances or no
chances to recover.

6. When respondents were asked about the

recession that according to them on what depends
the recession then researcher got following
responses
Recession depends on Response
Investment 0
Foreign market condition 4
Economic factor 1
Time duration 0

recession depends on
no. of organization

4.5 4
4
3.5
3
2.5
2 1
1.5
1 0 0
0.5
0
Investment Foreign Economic Time duration
market factor
condition

response
 According to this, 80% of the organization states that
recession is mainly due to the foreign market condition
and 20 % of them says that it mainly arises due to the
economic factor .

7. When respondents were asked about the

domestic factor which is most hit by recession then
following responses were obtained
Domestic factor Response
Labor 2
Raw material 0
Manufacturing 0
cost
Over all cost 3

domestic factor hit by recession

no. of organization

3.5
3
2.5
2
1.5
1
0.5
0

response
 According to this, 60% of the respondents the
domestic factor which is mostly hit by recession is
overall cost of the project. Whereas, 40% of the
respondents states labour as the most effected
domestic factor by the recession. None of the
organization says for raw material & manufacturing
cost.

8. When respondents were asked about the impact

of recession on global factor then their responses are

Global factor Response

Marketing 1
Investment by foreign players 2
Both 1
No effect 0
global factor hit by recession

2.5
no. of organization

2
1.5
1
0.5
0
Marketing Investment Both No effect
by foreign
players

response
 According to this, 60% of the organizations states
investment by foreign players as the most impacted
global factor by recession. Whereas, 20% of the
organizations says for marketing as the most impacted
global factor & 20% of the organizations states both
marketing & investment by foreign players had been
effected by recession.

9. When respondent were asked about performance of

fundamentals of economy during recession then
following responses are obtained
Fundamentals Response
Demand 4
Employment 0
Investment 0
Income, Interest & 1
Inflation

performance of fundamentals of economy during

5 recession
no. of organization

4
3
2
1
0
Demand Employment Investment Income, Interest &
Inflation
responses
 According to this, 80% of the respondents states that
demand of the product had been widely effected by
recession. Whereas, 20% of the respondents says for
income, interest & inflation are fundamentals of the
economy whose performance had been effected by
recession.

10. When respondents were asked about the impact of

recession on imports and exports then following
responses were obtained
Impact on imports & exports Responses
Very high 3
Very low 2
No significant impact 0
None of the above 0

impact on imports & exports

3.5
no. of organization

3
2.5
2
1.5
1
0.5
0
Very high Very low No None of the
significant above
impact

responses
 According to this, all the respondents are agreed
on the point that there is effect of recession on import
& export of the product, in which 60% of the
respondents states that there is very high impact of
recession. Whereas, 40% of them says that there is
very low impact of recession on imports & exports.

11. When respondents were asked about any cost

cutting programme if they are running due to
recession then following responses were obtained
Any cost cutting program Response
No 1
Yes 4
running of cost cuttig program

4.5
4
3.5
no. of organization

3
2.5
2
1.5
1
0.5
0
No Yes

response
 According to this, 80% of the organizations states
that they had gone for the cost cutting programme
because of the recession. Whereas, 20% of the
respondents says that they had not gone for any kind
of cost cutting programme.

12. When respondents were asked about cost cutting

program if they gone through then which policy they
are following; responses obtained for above are
Policy of cost cutting program Response
Retrenchment 0
No new recruitment 1
Less manufacturing 1
Other policies 3

type of cost cutting program which

industry is following
no. of organization

3.5
3
2.5
2
1.5
1
0.5
0
No new recruitment
Retrenchment

Other policies
Less manufacturing

responses
 According to this, 60% of the organization had
applied other policies of cost cutting programme.
Whereas, 20% of the organization had gone for no new
recruitment policy & 20% of the organization goes for
less manufacturing policy of cost cutting policy.

13. When respondents were asked about how

Government is helping handicraft industry then
following responses were obtained

Method of Government’s help Response

By making policy 3
By giving subsidy 1
By tax relief 0
By other policies 1

any Govt bailout plan

3.5
no. of organization

3
2.5
2
1.5
1
0.5
0
By making By giving By tax relief By other
policy subsidy policies
response
 According to this, 60% of the respondents states
that government had help them in the period of
recession by making certain policies. Whereas, 20% of
the respondents says that by giving subsidies
government is helping them & 20% of the respondents
says by some other policy government is helping them.

14. When respondents were asked about the

degree of recession with reference to time then
following responses were obtained
Degree of recession Responses
No such significant impact 0
Short term 4
Prolonged 0
Can’t say anything 1

degree of recession
4.5
4
no. of organization

3.5
3
2.5
2
1.5
1
0.5
0
No such Short term Prolonged Can’t say
significant anything
impact
response
 According to this, 80% of the respondents says that
there is short term effect of recession on handicrafts
industry. Whereas, 20% of the organizations states
that they can’t say anything about the duration of the
recession & it’s impact on handicraft industry.
actively contribute to the social and economic
development of the
communities in which we operate.
MISSION
D&S Handicraft seeks to be an innovative leader in the
distribution of
wooden handicraft, wooden furniture and gicles, and
is committed
to fulfill the expectations of all its customers,
employees, and suppliers.
To build the environment that will focus on:
Wealth
Creation, Infrastructure Development, Training,
Technological Development, and Poverty
Alleviation etc.
To increase awareness among craftsmen and
customers
through events, Seminars, Craft Forums and
advertisemencers to access the market.
Promotion of cultural tradition and heritage.
 RECOMMENDATION &
SUGGESTIONS
Each firm should participate in trade fairs
They should do innovation in wooden handicraft
products like; rotating dining table, decorative
coffee grinders, CD racks & wooden hangers etc
Regarding skilled labor problem they should give
them wages according to their work
Provide them performance appraisal and bonus on
Diwali.
On February 12, 2010, India's Export Promotion
Council for Handicrafts (EPCH), had approached the
Government with a Pre-Budget Memorandum, which
featured a series of relevant recommendations. These
included:
  Reintroduction of Income Tax exemption for all
handicrafts products under Section 10BA of I.T. Act,
1961.
 Extension of Service Tax exemption for merchant
exporters.
 Announcement of four more mega clusters namely
Jodhpur (Rajasthan), Mysore-Channapatna
(Karnataka), Puri (Orissa) and Ferozabad was also
there among other recommendations. - This,
according to EPCH, is necessary for the
development and promotion of handicrafts from
these regions.
 Service Tax exemption for traders participating in
international shows, who are subjected to pay in
foreign currency (including Indian rupees).
 Extension of the Service Tax exemption on
Membership Fee of the Council beyond March 31,
2010.
Incidentally, in 2009, Reserve Bank of India (RBI) had
extended the incentive from September 30, 2009 till
March 31, 2010 in order to extend its support to the
labor-intensive sectors like textiles, carpets,
handicrafts etc. which were badly affected by the
demand slump in the US and Japan following the
worldwide economic downturn.
Concerns expressed by EPCH were shortly echoed by
the Union minister of state for commerce & industry
Mr. Jyotiraditya Scindia, who urged the Union Finance
Minister Mr. Pranab Mukherjee to offer cheap dollar
credit at 1% over Libor (London Interbank Offered
Rate) to exporters, against the present 3.5% over Libor.
He has also asked the finance ministry to extend the
2% interest subvention scheme on rupee export credit
and benefits enjoyed by EoU (Export Oriented Units)
units.
All these demands are extremely logical since
handicrafts alone accounts for 1.5 per cent of India's
total exports, but this highly labor-intensive,
decentralized industry, concentrated mainly in rural
and semi-urban areas, is yet to get the desired boost.
Moreover, the sector is still reeling under the
pressures of recession and is yet heave a sigh of relief.
So now, it is time to see how the Government reacts to
these demands, and how far it succeeds to meet the
expectations of the handicrafts industry players in
India.
 Conclusion
Handicraft Industry of Jodhpur is one of the biggest
industries of Jodhpur dealing in export With a yearly
export of more than 1000 Cr. Although looking at the
trend of export figures we Can see a distinct growth in
this industry but on the other hand looking at the
potential of the Market this growth is not satisfactory,.
The total export of handicraft from India that is around
10000 Cr. Jodhpur’s share is only 10%.
The main observations of our study are some issues
like –
1. labor problem,
2. unwillingness towards investment in
machinery,
3. inability to participate in foreign trade fairs.
I have identified a number of problems of this industry
and these problems have decreased the potential. Still
this industry is not investing in machinery even after
knowing that the main concept behind success in this
industry is bulk supply and this is the point where
other countries exceeds.
By going for mechanization exporters will not only be
able to supply in bulk, uniformity in goods will also be
their and time consumption in manufacturing will also
go down which will decrease the operating cycle, One
more reason is unprofessional approach towards
work: most of the exporters are no going for marketing
and even if any firm is going then also they are sending
only their relatives there instead of any professional.

Most of the marketing people, which are from their

family itself only go and meet the existing customers,
nobody is searching for new buyers extensively, The
entire journey just because a year end holiday onlyfor
the person.

Although there are a number of factors that hinders

the growth but these are some of the most important
factors, If Handicraft Industry of Jodhpur will go for
mechanization or at least start participation in foreign
trade fairs it will raise exports figures much higher.

Future Prospects
The dynamism of handicrafts industry in India is
unparalleled - be it the traditional Indian arts and
crafts or a customized version of an overseas art form.
Unlike in the past when the industry was battling to
carve a niche in the market, there is a great demand
for Indian handicrafts today that is being nurtured by
different government and non-governmental
organizations.

The sector is economically important from the point of

view of low capital investment, high ratio of value
addition, and high potential for export and foreign
exchange earnings for the country. The industrial
revolution and the increasing productivity had slowed
down the growth and the quality of arts and crafts, but
for some decades now, the scenario has changed and
machine-made products no longer attract the people.
Presently handicrafts are being considered as
vocational media and it is also opted for style
statement and the leisure pursuit. Today, the crafts
and craftspeople have a vital role to play in modern
India – not just as part of its cultural and tradition, but
as part of its economic future.
Promotion of Indian Tourism to attract the
foreign
customers.
 Bibliography
Books

 Kothari, CR research methodology: methods and

techniques.2nd edition new delhi, vishwaprakashan,
1990
 Jodhpur Handicraft Export Association Report
2008-09
Internet
 www.google.com
 www.wikipedia.com
 www.jodhpur.nic.in
 http://handicraft.nic.in

ting to test the initial

potential of new products in
market
Effective Operational and
Technological Up gradation
Hiring skilled manpower, provide training
and awareness about latest technology and
market trends and effective management.
Cost Effective Production; Maintain Quality
Standards, and Packagingonsideration
Cost Effective Distribution Development using
both
Physical and Electronic Distribution Channels
(Internet, e-Commerce)
Both National and International Market
Development for better Export and Foreign
Revenue.
To know about the market potential for the
handicraft
To analyze the handicraft manufacturing, its
competition, customer preferences and their
satisfaction level.
72,99,200 units/ year
This gap is currently filled in by the manufacturers
who
are located outside Rajasthan which is fulfilled by
nearby
states like U.P., Madras, and Jammu & Kashmir. So
to fill
this gap the handicraft manufacturing unit can be
set up
locally.
Raw wood available in the form of logs is cut into
planks of desired thickness and length.
The piece of wood is then seasonecacies of the
carved design.
Different pieces of carved wood are joined
together to make complete, functional objects.
A protective coating is applied with a
suitable wood finishortunities for employment to
people
belonging to backward and weaker classes of society.
Low capital investment, Cheap and skilled labour,
Diversified
product portfolio, Flexible Production are few
important features of
Indian Handicraft Industry.
L
of international and new trends and Poor Promotional
campaigns are
a