Handicraft Business Plan: How To Start A Traditional Arts and Crafts Business

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Nowadays, the handcraft industry is thriving. So, if you want to start a Handicraft Business, read on. It is a wise choice for you. This is a long-term enterprise that will be lucrative in the long run. Is it difficult for you to establish a business at a young age?

Because of people’s preferences, the handicraft business is growing in size. People nowadays like to display handcrafted antiques in their homes. People enjoy collecting this type of old item. People enjoy amassing full cultural and ancient pieces.

Even foreigners are drawn to these handcrafted antique antiques. Handcraft businesses sell a variety of items such as bamboo pieces, glass pieces, paintings, and many more.

Indian handicrafts are the embodiment of our country’s diverse culture and rich heritage. Indian artisans sculpt their unique art into forms that can be passed down to future generations, using finely articulated designs to bring forth the heritage of their land, culture, and history.

Handicraft market in India

India’s cultural richness and heritage offer a one-of-a-kind and enormous resource for making craft products.

The Indian handicraft industry is consistently growing at a rate of 20% each year.


In India, the handicrafts industry is a prominent section of the decentralised economy. The majority of the industry is located in rural and semi-urban locations across the country, and it possesses a potential Indian and international market with over 60,000 exporters.

This industry employs a large number of artisans, including women and individuals from underdeveloped and underdeveloped societies. It is a significant source of revenue in the area.

The Indian handicraft sector is worth $100 billion globally. India’s share in the global market is 1.2 per cent.

The export of handicrafts contributes to 1.51% of India’s total exports.

Creating a Business Plan for Handicrafts

Selling handicrafts is a tricky business. Indian handicrafts are taken for granted, especially with the emergence of low-cost Chinese goods in the market. However, there is still a portion of the public that prefers authentic handcrafted items. As a result, it’s critical to target the right audience. So, here’s a step-by-step guide to launching a profitable handicraft business in India.

Executive summary

The firm will be fully operating in the handicrafts industry. It would provide its customers with gorgeous and authentic beautifully created handicrafts from all around India. It will operate as a sole proprietorship.

The primary purpose of the organisation will be to deliver high-quality, original items. Another key goal is to utilise the country’s talented craftspeople in order to maintain the country’s cultural heritage alive and prospering. To attract the most attention, the business will be located in the heart of the city, close to its target clientele. The shop’s inventory would be filled with the most well-known handicrafts from throughout the country.

Market Analysis

The handicrafts market in India is currently experiencing remarkable expansion. The availability of handmade products on various online portals has significantly improved the market’s growth in India. Aside from that, handicrafts are becoming increasingly popular as the country’s travel and tourism industries grow. By FY 2022-23, India’s handicraft exports will have surpassed Rs 24,000 crore.

The handicraft sector has risen dramatically over the years, thanks to the government’s persistent promotional and growth efforts. The handicraft industry is consistently growing at a rate of 20% each year, according to the Ministry of Textiles. Currently, the sector is estimated to employ roughly 68.86 lakh craftspeople.

Competitor Analysis

Indian handicrafts are in high demand in countries such as the United States, Canada, France, the United Kingdom, Italy, and Germany. In the fashion industry, Indian handicrafts are highly prized. Development in sectors such as retail, real estate, and so on raises demand and expands the market for handicraft products. The rise of e-commerce and the internet has created a viable distribution avenue for handcrafted objects to be marketed and sold.

Handicrafts from China, South Africa, Thailand, Spain, and other countries compete fiercely in this industry. Advanced technology and research and development in competitors’ countries benefit them, however, their absence in India causes the sector to lag behind.

In the domestic market, brands like FabIndia, National Handloom Corporation, Khadi dominate the market and online stores like iTokri, The Khadi Cult and Hands of India dominate the e-commerce sector.

SWOT Analysis of Handicraft Industry


  • The presence of a large, diversified and untapped market.
  • Owing to the diverse culture, there is a wide range of products available.
  • The market boasts a well-developed, well-diversified, and well-supported retail infrastructure.


  • Lack of awareness of the market potential among the artisans.
  • Infrastructure and communication facilities remain underdeveloped.
  • There is a lack of coordination between government agencies and private businesses.


  • Rising demand for Indian handicraft products in the global fashion industry.
  • The demand for handicraft products is increasing in developed countries like the United States, France, Germany, and Italy.
  • The growth of the domestic and international tourism industries promotes the growth of the handicraft industry.


  • Competing countries such as China and South Africa make high-quality goods.
  • These countries are also capable of providing better trade arrangements.
  • High demand and supply must be balanced.

Product & Service

The Indian handicrafts business has a lot of potential. It consists of thousands of widely popular items. Specific handicraft objects with unique styles and patterns may be found in every region. Furthermore, the industry has strong export potential. Textiles, purses, jewellery, and home decor items are all extremely popular in the worldwide market.

To begin with, you have to choose the products and services you want to offer. You have to scan your market and choose that product or service which has the highest demand and can be easily accessed in your region.  You also have to decide the number of categories (such as textile, jewellery, wood wares etc.) of products that you wish to offer.

Labour Requirements

Labour requirements are an essential part of any business. A critical factor to consider is the number of workers who will assist you. And how many hours of effort are required to be compensated. Yes, labour difficulties are linked to planning, manufacturing processes, and budgeting.

In case you open a physical store, then you need to take into account the number of employees you will need to help run the place. Other than this, you also need to decide how many artisans and suppliers will work for you full-time and how many will work on a contractual basis or part-time.

Machinery/Equipment involved

Setting up the necessary machinery and equipment required to make the products is an important part of starting your business. There are two ways to go about this: you either purchase and set up the necessary equipment in your own facility or you compensate the hired artisans for using their own tools.

In India, raw materials are also a major issue for the handicraft industry. Look for a supplier who can provide you with raw materials that satisfy the standards you’ve established. This is because the quality of the raw materials determines the quality of handicraft products.


If you’re planning on opening a physical store then keep the following factors in mind to choose an ideal location. Ensure that your store is in the central part of the city where most of the crowd is actually your target audience. It is also important to choose a location through which you can easily access your suppliers.

Soon, Indian eCommerce will be a billion-dollar industry. India’s eCommerce revenue is expected to rise from $39 billion in 2017 to $120 billion in 2020, marking the world’s fastest growth rate of 51 per cent.

So why not take advantage of the current craze and sell your handicrafts on the internet? Indian handicrafts are well-loved not just by Indians, but also by international markets and audiences.

Financial Analysis

Owing to cheap labour costs and competitive pricing, getting into the handicraft business in India is a relatively low capital investment. However, it is important to note that with the additional costs of marketing, rent and website development the overall investment amount is likely to increase.

The initial cash required to start a business differs from that required to start other home-based businesses, which typically require a considerable sum of money.

You can start this handicraft business in India with a minimal amount of money. The necessary capital typically varies from 10,000 to 30,000 INR.

Famous handicrafts of India

Each Indian state has its own distinct culture and natural beauty. Each state also has its own distinctive enticing handicrafts to offer, each with its own expressive charm.

Some of India’s most prominent handicrafts include the brass wares from Moradabad, wooden articles from Saharanpur and Agra’s marble crafts.

The iconic Jaipuri quilts, Bagru and Sanganer’s printed textiles, and wooden and wrought iron furniture from Jodhpur can all be found in Rajasthan.

Gujarat is known for its embroidered Kutchi items, whereas lace and crochet items are famous in Narsapur, Andhra Pradesh.

However, these are just a fraction of the overall product line as Indian handicrafts have a great deal more to offer.

Although each state has a variety of distinct handicrafts, below is a list of some of the most well-known handicrafts from each state:

  • Andhra Pradesh is famous for its Kondapalli toys and Kalamkari art.
  • Arunachal Pradesh is renowned for its intricate Weaving art and Thangka painting.
  • Assam’s artisans make some of the most beautiful water hyacinth handicrafts and bamboo and cane handicrafts.
  • Bihar is most famous for its Madhubani paintings and Sikki Grass craft.
  • Chhattisgarh’s intricate range of handicrafts is mind-boggling. Bell metal handcraft, clay art, godna art, bamboo craft, cowrie craft, kosa, wrought iron craft, and other crafts are recognised in Chhattisgarh.
  • Handicrafts have a long history in Goa. Among the crafts found in Goa are seashell crafts, hand-painted tiles, brassware, wooden lacquerware, and papier-mache.
  • Gujarat is well-known for its unique handicrafts like Khavda pottery and bead craft.
  • Pottery, embroidery, weaving, Phulkari, Chope, Bagh, and palm leaf work are among Haryana’s arts and crafts.
  • Himachal Pradesh, a Himalayan state, is known for its shawls, paintings, leatherwork, metalwork, and stonework.
  • Jammu and Kashmir are well-known across the world for its soft Pashmina shawls and intricate woodwork.
  • Jharkhand’s Jadupatua paintings and Sohrai paintings are just two among the many indigenous handicrafts created by the tribes that belong to the state.
  • Karnataka is renowned for its Sandalwood carving and Mysore painting.
  • Kerala’s Kathakali masks and coir products are some of the most famous souvenirs taken home by tourists.
  • Chanderi craft is arguably one of the most famous crafts that have come out of Madhya Pradesh.
  • Maharashtra is world-famous for its Warli paintings and Kolhapuri chappals.
  • Manipur’s speciality is its Stone carving and Kaun grass craft.
  • Meghalaya, Tripura and Mizoram, like most of the other Northeastern states of India, are famous for their unique and intricate weavings and bamboo and cane crafts.
  • Nagaland’s artisans are well known for the various figures carved on their wooden sculptures.
  • Odisha is known for its silver filigree and Pattachitra.
  • Punjab is famous for Phulkari art and Paranda.
  • Rajasthan, the Land of Kings, hosts some of the most skilled artisans in the world who specialise in creating intricate metalware and hand-printed textiles.
  • Sikkim’s most famous handicrafts include Choktse tables and carpet weaving.
  • Tamil Nadu’s Tanjore painting and Toda embroidery have a rich history spanning centuries.
  • Telangana crafts include Bidri craft and Banjara needlecraft.
  • Uttar Pradesh is famous for its exquisite embroidery works of Chikankari and beautiful Banarasi sarees.
  • Uttarakhand is famous for its woollen handicrafts and wood carving crafts.
  • Terracotta, Madur, bell metal, Shola, and Dashavatar cards are among West Bengal’s crafts.


The Handicrafts Sector plays a significant role in the country’s economy. In the changing environment, Indian handicraft has significant growth potential, with its primary strength being the large and inexpensive supply of labour.

Now that you’ve gone over a detailed plan for launching your Indian handicrafts firm, you should begin analysing your market conditions and future prospects. Follow a complete execution strategy that incorporates all of the aforementioned factors to start off your dream arts and crafts enterprise successfully. In this manner, you’ll be able to meet your goals and get your business to the standard that you have in mind for it.

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