SUMMER INTERNSHIP PROJECT REPORT

“SUBHAN HANDCRAFTS: Bringing Indian

Handicrafts to the World”

Submitted in partial fulfillment of the requirements for the award of BBA

degree

Submitted by Srajan Malik

BBA
Batch – (2022-25)
Roll No.: 2202000591
Under The Guidance of : Sapna mathur
Internal supervisor : MOHD SUBHAN
Designation : Manager

SCHOOL OF BUSINESS STUDIES

SHARDA UNIVERSITY, GREATER NOIDA-201306
CERTIFICATE FOR INTERNSHIP
 Abstract

The “SUBHAN HANDICRAFTS “– Manufacture & Exporter of gifts &

Handicrafts (A government Recognized Export House) is situated at station

road, jodhpur.

The owner of this industry is MOHD SUBHAN

It is totally an export company. Its position is very good in handicrafts of

iron material. And good position in Rajasthan and India. Total production is

depend on designing. This firm’s products are too good, fine art and

attractive antiques.

They are the fast leading Export Company.

When it comes to handicraft exporters in the Suncity. Who can forget raj

handcrafts. Which are into the exports since 2006. The company mainly is

into production of Wooden handicrafts, cup, shield, handicraft, trophy,

momento. The company is exporting products to USA, Canada, Spain, Italy

and UK. It is a award winner company,

The main customer for handcraft are

• 1) Forign investor

• 2) high profile person

The handcraft item are mostly useful for gift item.

The raj handcraft have sufficient staff for their three type of work:-

1. factory work

2. Office work

3. logistic work.

The staff for all work are to supportive and Workable at all condition.

At the and I can only give the my gratitude to Mr. PRAKASH MAKHIJA and

their staff for their help andSupport for completing this project work.
 EXECUTIVE SUMMARY

The SUBHAN HANDICRAFTS is a premier

manufacturer and exporter of gifts and handicrafts,
proudly recognized as aGovernment-Approved Export
House. Based in the culturally rich city of Jodhpur, the
company leverages thecity’s heritage of traditional
craftsmanship and artistry toproduce high-quality
products that meet global standards.Conveniently located
on Station Road, Jodhpur, the company benefits from
excellent connectivity and accessto skilled artisans.
Since its inception, SUBHAN HANDCRAFTS has
dedicated itself to preserving and promoting India’s
traditional handicrafts while catering to the evolving
demands of international markets. The company specializes
in a widerange of handcrafted items, including wooden
furniture, decorative items, textiles, and eco-friendly gift
products, which combine aesthetic appeal with
functionality.
With a commitment to quality, innovation, and sustainable
practices, SUBHAN HANDCRAFTS has established a
strong presence in key global markets, including Europe,
North America, and Asia. The firm adheres to stringent
quality
control measures and maintains strong partnerships with
artisans, ensuring fair wages and fostering skill
development.
The company’s mission is to bring the essence of Indian
craftsmanship to the global stage while contributing to the
socio-economic development of local communities. With a
forward-looking strategy, SUBHAN HANDCRAFTS
continues to innovate in design, expand its market reach,
and upholdits legacy as a leading name in the handicraft
and export industry.
This project report delves into the company’s operational
framework, market analysis, financial performance, and
future growth prospects, presenting a comprehensive
understanding of SUBHAN HANDCRAFTS’ role in the
Indianhandicraft industry and global trade.
 ACKNOWLEDGEMENT

This project is the outcome of sincere efforts, hard work and constant
guidance of not only me but a number of individuals. First and foremost, I
would like to thank Sharda University, Greater Noida.
I am thankful to my guide of Sapna Mathur for providing me help and
support throughout the Research Project Report.
I owe a debt of gratitude to my faculty guide who not only gave me
valuable inputs about the industry but was a continuous source of
inspiration during these months, without whom this Project was never such
a great success.
Last but not the least I would like to thank all my Faculty members,
friends and family members who have helped me directly or indirectly in
the completion of the project.

Srajan malik (BBA)

 DECLARATION

I SRAJAN MALIK student of School of Business, Sharda University,

Greater Noida, hereby declare that the research report on ~
HANDICRAFT is an original and authenticated work done by me.
I further declare that it has not been submitted elsewhere by any other
person in any of the institute for the award of any degree or diploma.

Srajan Malik (BBA)

 CONTENTS
S.No. Topic
01. Introduction
02. Handicraft: An overview
03. Handicraft: Key Facts
04. Problems of Indian Handicraft
05. Role of government policies

06. Associations organization .

07. EXIM Policy
08. Rajasthan: The Destination of handicrafts

09. Top on the world chart- Rajasthan chart

10. Major distribution channels

11. Value adding chart in handicraft

12. Research Methodology

13. Facts and Finding
14. Analysis and Interpretation

15. Conclusion
16. Recommendation and Suggestions

17. Appendix
18. Questionnaire

19. Bibliography
INTRODUCTION
HANDICRAFTS : An Introduction
Handicrafts are unique expressions and represent a culture, tradition
and heritage of a country. The Handicraft Industry is one of the
important productive sectors. Various attempts have been made to
define this broad and diversified industry. The following definition
strives to cover diversity and complexity of Handicraft Industry.

Defining Handicrafts:
Definition According to United Nations Educational, Scientific and
Cultural Organization /Information Technology Community
(UNESCO/ITC) International Symposium on “Crafts and the
International Market: Trade and Customs Codification”, Manila,
Philippines, October 1997:

Handicrafts can be defined as products which are produced either

completely by hand or with the help of tools. Mechanical tools may
be used as long as the direct manual contribution of the artisan
remains the most substantial component of the finished product.
Handicrafts are made from raw materials and can be produced in
unlimited numbers. Such products can be utilitarian, aesthetic, artistic,
creative, culturally attached, decorative, functional, traditional,
religiously and socially symbolic and significant.

Definition according to Govt. of India:

Handicraft can be defined, which is made by hand; should have some
artistic value; they may or may not have functional utility.

Indian Handicraft Industry

Crafts are unique expressions that represent a culture, tradition and

the heritage of a country. India is well known for its exotic crafts
legacy and tradition. It is the land of art and crafts, a country of rich
culture, history and traditions. A wide range of Indian Crafts
represents the diversity of crafts tradition in India. Variety of designs
and finishes are available in Indian market that reflects excellent
artistic skills of craftsmen are great in demand globally. India is one
of the important suppliers of handicrafts to the world market. The
Indian handicrafts industry is spread all over the country in rural and
urban areas. Thousands of skilled artisans are engaged in crafts work.

Handicrafts Industry is playing a major role in the development of

Indian economy. This sector is economically important from the point
of low capital investment, high ratio of value addition, and high
potential for export and foreign exchange earnings for India.
As per the latest updates, there are more than 23 million craftspeople
in India today engaged in the growth of Indian handicrafts industry.
Few more details:

• Second largest employment sector in India, second only to

Agriculture.
• More than 23 Million craftspeople.
• 63% of exports turnover.
• 9 items dominate exports of handicrafts.

These nine items which have extra edge over other products include
art metal ware, wood ware, hand-
printed textiles, hand-knotted and
embroidered textiles, leather
goods, stoneware, carpets and
floor coverings.

The Importance of
Handicrafts:

The Cultural Importance:

Handicrafts play very important
role in representing the culture
and traditions of any country or
region. Handicrafts are a substantial medium to preserve rich
traditional art, heritage and culture, traditional skills and talents which
are associated with people’s lifestyle and history.

The Economic Importance:

Handicrafts are hugely important in terms of economic development.
They provide ample opportunities for employment even with low
capital investments and become a prominent medium for foreign
earnings.

Handicrafts: An Overview
India is a country of rich culture, history and traditions. India is one of the major producer and
supplier of Handicrafts products in the world. India has been major producer and supplier of
handicrafts products since very long time. Before the industrial development, this art and industry was
a potential economic advantage for the country. During recent years, the importance of handicrafts
has been surged due to their cultural and financial values. The small scale industries - including
handicrafts can play a major role in the development of the economy of both developed and the
developing countries equally. The 90-95% of the total industrial products of the world is produced in
small workshops run by less than 100 people.

For instance, Japan, which is at the peak of the economic development, has considered 84% of it’s
industries as small and medium scale industries. In countries such as India and China, handicrafts are
as high as the mechanized products in quality and volume, and are a major source of their foreign
earnings. These countries are focusing on the development of handicraft industry, in order to
strengthen the economy. The Indian handicrafts industry is highly labor intensive, cottage based and
decentralized industry. The industry is spread all over the country mainly in rural and urban areas.
Most of the manufacturing units are located in rural and small towns, and there is huge market
potential in all Indian cities and abroad. Handicraft industry is a major source of income for rural
communities employing over six million artisans including a large number of women and people
belonging to the weaker sections of the society.

The Handicraft sector is highly creative sector and produces large variety of crafts products. This
industry is localized segment of the domestic and international market. In India the production of craft
products are done on both large and small scale. Because of low capital investment people can start
their business on small scale. Through this flexibility the demand and supply can be managed.
Though Indian Handicraft industry is considered a cottage industry, but it has evolved as one of the
major revenue generator over the years. There has been consistent growth of 15% over
few years and the industry has evolved as one of the major contributor for export and foreign revenue
generation.
There is huge demand for the Indian Handicraft products in both national and international market. To
match the demand and supply with quality, there is need to have greater technological support and
innovativeness with the uniqueness in industry.
Handicrafts - Key Facts
• India’s rich cultural diversity and heritage provides a unique and huge resource for
developing craft products.
• The Indian Handicraft Industry is showing continuous growth rate of 20% every year. Handicrafts industry is o
• Major parts of industry operates in rural and semi urban areas throughout the country
and has potential Indian and International market with around 67000 exporters to tap the
market.
• According to the national census of handicrafts, undertaken by the National Council for
Applied Economic Research the value of handicrafts produced last year were of
Rs.26,213 Crore.
• This Industry provides huge employment opportunities to artisans that include women
and people belonging to backward and weaker society. This is one of the major source
of income there.
• The Indian Handicraft Industry is a $100 billion industry worldwide.
• India’s contribution in world market is 1.2%
• The total exports of crafts items: - Rs. 13412.92 Crore.
• Industry’s share in India's exports:- 1.51 %
• In spite of having diversified products, some part of Indian market are still untapped
and market is price sensitive.
• Products are high priced in big and metro cities, which are beyond, reach of people
belonging middle and lower middle class.
• Craft producers have to compete on price, quality and delivery for different segments.
• There is poor promotion for craft products in national market.
• There is lack of awareness about new traditions and among craftsmen and there is need
of technological support and training.
• Classification:
 Handicrafts industry comprises diversified products portfolio and there is large variety
available in market. Handicrafts products
Metal ware, Wood ware, Hand printed textiles, Embroidered and crocheted goods, Shawls,
Carpets, Bamboo products, Zari goods, Imitation jewellery, Paintings, Earthenware, Jute
products, Marble Sculpture, Bronze Sculpture, Leather Products and other miscellaneous
handicrafts.
Problems of Indian handicrafts
The mass-produced goods are steadily replacing utility items of daily use made by craftsmen.
Limited public awareness of the cost-effectiveness, functionality and range of craft products.
The urban consumer does not have access to many of the handicrafts products.
Crafts people are bound in their struggle for survival to money-lenders, traders or middlemen for
credit and raw materials and they are obliged to sell their products to them at a minimal price
decreasing their interest towards the traditional arts and crafts.
Women struggling to enter the economic mainstream should be encouraged to use craft to
become wage earners, provided they are shown how to get access to the market.

Value Adding Chain in Handicrafts

Identification of market opportunities

Prototype design and development / adaption and refinement

Test marketing

Upgrading equipping facilities

Securing inputs
 Entrepreneurial hiring, training, managing

Production, quality control and packaging

Costing and pricing

Physical distribution

Export market development

In the changing world scenario, craft products exported to various countries form a part of lifestyle
products in international market. The impact is due to the changing consumer taste and trends. In
view of this it is high time that the Indian handicraft industry went into the details of changing
designs, patterns, product development, requisite change in production facilities for a variety of
materials, production techniques, related expertise to achieve a leadership position in the fast growing
competitiveness with other countries.

The 6 million craft persons who are the backbone of Indian Handicraft Industry as provided
with inherent skill, technique, traditional craftsmanship but that is quite sufficient for primary
platform. However, in changing world market these craft persons need an institutional
support, at their places i.e. craft pockets for value addition and for the edge with other
competitors like China, Korea, Thailand etc.
RESEARCH
METHODOLOGY
RESEARCH METHODOLOGY

Market Research is a systematic gathering recording analyzing data about problems relating
to the marketing of product and services. It is the process of a systematic and in depth study
an area of investigations. Supported by the collections, completion and end presentation of
relevant details for further utilization. It involves scientific analysis that would result in the
formulation of new theories, the discovery of new techniques, a modification of old concepts
or rejections of an existing theory. Marketing research plays a vital role of making available
the right at right time, right place and to the right person for use in decision making. It is
very difficult to find out information about the company’s strategies and polices. Thus,
research methodology is a way to systematically solve the research problem. It includes:

1. To know the research problem.

2. To specify the specifications.

3. To review literature.
4. Data verifications.
5. Data analysis.
6. Interpretations.

DATA COLLECTION TOOLS

Depending upon source data collection is classified under two categories:

1. Primary Data

2. Secondary Data

PRIMARY DATA

The data which are originally collected by an investigations or agency for the first time for any time
for any statistical investigations used by them in the statistical analysis are termed as primary data.
SECONDARY DATA

The data which have already been collected and processed by some agency or person and

taken over from these or used by any other agency for their statistical work are termed as

secondary data.

The methodology used for the data collection was based on personal observation &

information gathered through various sources like Internet, annual reports etc. The

information so received was properly analyzed, interpreted to the right conclusions.

The research study has been carried out by adopting the following methodology:-

1. The review of available literature was made to develop the conceptual framework of

Handicraft industry.

2. The study has been based on primary & secondary data both.

Research Design:

After having defined the marketing research problem and developed a suitable approach, attention
must be given to the formulation of a detailed research design, which will provide pertinent
information. According to (C.R. Kothari, 2004) when defining research design, he presents it simply
as ‘the framework for a study used in order to guide the collection and analysis of data’.

According to Kothari (2003), there are two major types of research design:-

1. Exploratory research--concerned with the development of initial hunches or insights.

2. Conclusive research--intends to verify insights and help decision makers to select a Specific
course of action.

Even though exploratory and conclusive research has distinct purposes, they both consist of the same
research components. They differ only in terms of the degree of formalization and flexibility of the
components illustrated in table below:
Research project Components Exploratory Research Conclusive Research
Research Purpose General: To generate Specific: To verify insights in
insights about a situation selecting a course of action

Data Needs Vague Clear

Data Collection Form Open-ended , Rough Usually Structured

Sample Relative Small Relative Large

Data Collection Flexible, No set procedures Rigid, well laid out Procedures

Data Analysis Informal, Typically non- Formal ,typically quantitative

Quantitative

Exploratory Research:

According to Kothari (2003), the primary purpose of exploratory research is to shed light on the
nature of situation and identify any specific objective or data needs to be addressed through additional
research. Exploratory research is the most useful when a decision maker wishes to better understand
situation, identify relevant courses of action or gain additional insights before an approach can be
developed. In general, exploratory is appropriate to any a problem about which little is known.

Exploratory studies are distinguished by flexibility concerning the methods employed. Literature
searches, experience surveys and study of selected studies are some commonly used approaches
(Kothari, 2004).An effective way of doing exploratory research is to seek out and talk to individual
with expertise related to the situation being investigated.
Conclusive Research:

The insights gained from exploratory research might be verified by conclusive research, as the
objective of conclusive research is to test specific hypothesis and examine specific relationship
(Malhotra, 1999). Conclusive research is especially useful when the decision-maker already has in
mind on or more alternatives and is specifically looking for information pertinent to evaluating them.
Therefore, when conductive a conclusive research, the decision maker can choose the best course
action in a situation.

The kind of research is based on large, representative samples, and the data obtained are
subject to quantitative analysis.

There are two basic forms of conclusive research:-

o Descriptive research
o Casual research

The distinction between the two is based on the primary purpose of a conclusive –research project and
the nature of the inferences that can be drown from it.
Descriptive research:

Descriptive research is the design involved in the vast majority of marketing studies. The goal of
descriptive research, as the name implies is essentially to describe something. Specifically, it is
intended to generate data describing the composition and characteristics of relevant groups of unit
such as customers, salespeople, organization and market areas (Parasuraman, 1991).Data collected
through descriptive research can provide valuable information bout the study units along relevant
characteristics and also association among those characteristics.

Title of study-
To study the growth prospects of the handicraft industry at Jodhpur

Objective of Study
1. To study the handicraft industry of India.
2. To study the recessionary effect on the handicrafts industry at Jodhpur.
3. To understand the complete procedure and requirements of Indian Handicraft Industry.
4. To analyze the different product of Indian Handicraft Industry.
5. To find the potential in existing market.
6. To measure the satisfaction level of the existing customers and to make the customers
aware about the new products offered by Handicraft Industry of Jodhpur.

SAMPLING
Sampling may be defined as the selection of some part of an aggregate or totality on the basis which
a judgement or interference about the aggregate or totality is made. In other words, it is the process of
obtaining information about an entire population by examing only a part of it. In most of the research
work and surveys, the usual approach happens to be to make generalizations or to draw inferences
based on samples about parameters of populations from which the samples are taken.

Population (or universe) is the aggregate or totality of statistical data forming a subject of
Investigation, for example,
1) The population of books in the National Library.
2) The populations of the heights of Indians.

A Sample is a portion of the population which is examined with a view to estimating the
Characteristics of the population, i.e.,
1) To assess the quality of a bag of rice, we example only a portion of it. The portion selected
from the bag is called a sample, while the whole quantity of rice in the bag is the population.
To estimate the proportion of defective articles in a large consignment, only a portion (i.e, a few
of them) is selected and examined. The selected portion is a sample.

TYPE OF RESEARCH
Research of the project was Field Research Analysis.

Field Research:
Field research are ex – post facto scientific inquires that aims at finding the relations and inter –
relations among variables in a real setting. Such studies are done in life situations like communities,
schools, factories, organizations and institutions.

Advantages of Field Study:

1) They are close to real life, and they cannot be criticized on the ground that they are
remote from real settings or are artificial. Field studies are more socially significant than
other types of study.
2) In real settings, variables exert their influence fully and, as such, the strength of variables is
another advantage of field studies.
3) field studies are also strong in their heuristic quality.

Limitations of the Field Study:

1) Such studies are scientifically inferior to laboratory and field experiments.

2) There is lack of precision in the measurement of variables. This limitations arises on
account of the greater complexity of field situations.
Such studies have practical problems in respect of feasibility, cost, sampling, and time. For instance,
they are likely to take more time and involve a great cost.

Scope of the Study:

Every research is conducted to fulfill certain objectives and these objectives in turn fulfill some
purposes and it is of significance for one or more than one party, this research was significant both to
the company as well as to the researcher.

Significance Of The Researcher:

It helps the researcher in studying the various kinds of risk and uncertainty in recession and to know the
awareness and the satisfaction level among the entrepreneurs regarding the recession and Government.
The research is compulsory for the partial fulfillment of M.B.A. curriculum so the research facilitates
the researcher for the fulfillment.

The researcher has got an opportunity of implementing her theoretical knowledge of management
program in her practical life.

The researcher has not only got practical exposure of working conditions but also learned a lot in the
field of research.

Significance To The Organization:

It will enable organization to know about the fluctuation in demand including various type of risk and
uncertainty faced by the entrepreneurs and their satisfaction level regarding the policies made by
Government for them to coming out from the phase of Recession. It will help the organization in
adopting the strategies. This description will help the Industry to know whether their customers were
about their product range and how can they overcome the situation of recession. In case if any
customer is not aware about them then to create awareness regarding the utilization of these services
and to overcome all the risk and uncertainty component of business to earn maximum profit or getting
no loss regarding the recession.

To Other:
The study will become useful for future scholars who would wish to conduct the similar study. The
researcher can be an important secondary source of information for future scholars.

LIMITATIONS OF THE RESEARCH

1. Small sample size may sometimes result into erroneous results.
2. Diminutive Time Limit.
3. Different Industrialist have different kind of effect and it is difficult to recognize all.
4. The information related to Handicraft industry seems to be contradictory to the actual behaviour
of the industrialist.
5. Not having proper knowledge of the location of the organizations.
 FACTS
AND FINDINGS

Facts & Findings

⚫ In small units only 14% units go for outsourcing
⚫ 46% of units are making decorative items, which need skilled labor
⚫ Max. no. of units are making only traditional items, they are not making any new innovative
items like- rotating dining table, decorative coffee grinders, CD racks etc
⚫ 60% of units are facing skilled labor problem and 20% of units are facing raw material
(wood) price increase problem
⚫ 60% sales generate in September to December month
⚫ 63% of units sale their products by direct sale or by phone

• The total exports in the year 2006-07 has been the highest with respect to initial handicrafts
exports in the year 1994-95.

• The graph shows a decline in the exports in the year 2008-09,due to world wide recession.
The above figure shows the country wise share of art metal ware in 2008-
09.

The above figure shows the country wise share of wood ware in 2008-09.
The above figure shows the share of miscellaneous handicrafts in 2008-09.
 ANALYSIS AND
INTERPRETATION
1. 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 domestic & 2

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 availability Organization’s choice
through

Producing by yourself 0

Order 4

Vendor contract 1

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
2
1.5
1
0.5
0
Earlier before After recession No change in
recession recession need

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 recovery Response

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 cost 0

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

no. of organization 2.5

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 & Inflation 1

 performance of fundamentals of economy
during recession

4.5
4
no. of organization

3.5
3
2.5
2
1.5
1
0.5
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

Less manufacturing

Other policies
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

no. of organization 3.5

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.
 CONCLUSION

\
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. and 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.
RECOMMENDATION
AND
SUGGESTIONS
RECOMMENDATION AND 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.
Q. What could be done to boost handicraft exports?
Here are some suggestions –

Repositioning and Better Planning:

India should explore and focus on new sizable markets such as France, Netherlands, Italy,
Switzerland, Canada, Japan and Hong Kong where our exports are negligible. This
repositioning would create phenomenal job opportunities to people in rural and semi-urban
areas, it will revive old dying arts and artisans. Today our concentration is excessive on three
markets United States of America, United Kingdom and Germany. The future promotion of
exports must be focussed on growth items and thriving markets for better results.

Assessment of Competition:

While India offers to the world mostly culture goods, its competitors in Asia and Europe offer
culture goods as well as mass manufactured handicrafts. This is because those countries treat
handicrafts as a full-fledged industry Once India recognizes the potential and accords the
status of an industry to Handicrafts then it could be a leader in culture goods as well as mass
produced decorative goods.

Reorientation of Products:

Exporters should be exposed to the global market in a systematic and scientific way whereby
they realize the customer focus of the country to which they are exporting their goods. Using
modern technology, improved tools and techniques, more sophisticated packaging materials
and techniques are some of the ways to make Indian handicrafts more popular in the world.

Professionalism:

This would include the total quality management, being conversant and updated with the global
designs, colour trends, environmental concerns, packaging and everything to boost handicraft exports.
Publicity through the Internet, preparation of world class catalogues advertisement materials and
making efforts to make the Made-in- India label prestigious.
APPENDIX
 Questionnaire

Name:

Name of the organization:

Job title:

1. What is the Market of sales of handicraft’s product in your organization?

(a) domestic
(b) foreign
(c) both

2. What is the Availability of Raw Material in your organization?

(a) produced by self

(b) produced on order
(c) vendor contract

3. Has the need of finance for purchase of raw material same as before
recession or no change ?

(a) same need

(b) increased need
(c) no change

4. What has been the duration of recessionary effect on your organization?

(a) Still facing

(b) Overcome
 (c) Not faced yet
(d) No such prominent impact

5. Do you have any chances of recovery in the period of recession?

(a) Already recovered

(b) More chances
(c) Less chances
(d) No chances

6. According to you, what are the reasons for recession??

(a) Faulty interpretations of investment avenues

(b) Foreign market conditions
(c) Economic factors
(d) Time duration

7. Which is t the domestic factor which is most hit by recession?

(a) Labour
(b) Raw material
(c) Manufacturing cost
(d) Over al cost

8. What is the impact of recession on global factor ?

(a) Marketing
(b) Investment by foreign players
(c) Both
(d) No effect
9. What is the performance of fundamentals of economy during recession ?

(a) Demand
(b) Employment
(c) Investment
(d) Income, interest, inflation

10. What is the impact of recession on imports and exports of handicrafts?

(a) Very high

(b) Very low
(c) No significant impact
(d) None of the above

11. Did you follow any cost cutting program in your organization owing to
recession?

(a) Yes
(b) No

12. What cost cutting program did you follow in your organization?

(a) Retrenchment
(b) No new recruitment
(c) Less manufacturing
(d) Other methods

13. How is the government helping your industry to grow?

 (a) By making policies
(b) By giving subsidies
(c) By tax refiefs
(d) By other policies

14.What is the degree of recession with reference to time ?

(a) No such significant impact

(b) Short term
(c) Prolonged
(d) Cant say
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