Presently, handicraft sector is contributing substantially towards employment generation and exports but this sector has suffered due to its unorganized nature along with additional constraints like lack of education of artisans, and poor exposure to new technologies, absence of market intelligence competition from machine-made products, lack of access to credit & poor institutional framework. To promote Handicrafts and address the problems and challenges being faced by the sector, the Office of the Development Commissioner [Handicrafts] under the Ministry of Textiles is undertaking various developmental activities under the umbrella scheme titled “National Handicrafts Development Programme” [NHDP]. The NHDP scheme has the following components:

Ambedkar Hastshilp Vikas Yojna (AHVY)

Community Empowerment program for handicrafts sector/ cooperative/ SHGs is a must to empower the artisans by making them active entrepreneurs-cum-primary stakeholders of development and bringing them to a visible platform that will help enhance their operational efficiency and competitiveness to face the new challenges and make them viable and self-supporting economic entity. Financial Assistance will be provided to the tune of INR 300/- per artisan for the number of persons to be surveyed and mobilized for empowerment in the form of a grant in aid.

After formation identification of the SHGs/Society, the concerned Implementing Agency will prepare a diagnostic study report (DSR) in consultation with the stakeholders and the Assistant Director of the local Marketing & Service Extension Centre for proposing further interventions in the cluster. Financial Assistance will be provided @ 2 % of the project cost up to a maximum of Rs.2.00 lakh per project to appraiser/moderator for 3 years in case of third party consultants. In so far as possible existing SHGs formed under different schemes of Government of India and the State Government should be leveraged. In the short formation of new SHGs should be done only where no SHGs exist.

Design and Technology Upgradation

The objective of the program:

• To develop new prototypes to suit the tastes and preferences of the contemporary market using the traditional skill of artisans and the introduction of new techniques and technologies for enhanced production.
• Comprising design development, technology development, techniques/process, and formulation and publication of crafts design/craft technology to a large number of artisans for their skill up-gradation.
• To improve the productivity of the craftsmen and their income. Model toolkits, safety equipment, looms, furnaces, etc. may be approved at DC(H) office before distribution.

Financial assistance of up to 40% of the designer fee up to a maximum of INR 30,000/- per month not exceeding six months; 19,45,000 for the workshop and the project.

Human Resource Development

The objective of the program:

• To provide a qualified and trained workforce to the handicraft sector.
• To create human capital for the sector in terms of a trained cadre of designers for the handicrafts by providing relevant inputs through its components.
• A provision made for the imparting soft skill considered necessary for the artisans to enable them to undertake their own business successfully.

Financial assistance is directly given to Master crafts persons through field offices. Funds will be released in two installments, 50% as advance as the first installment and remaining on completion of the event subject to the actual expenditure as second and final installment in the shape of reimbursement after receipt of requisite audited statement of expenditure, UC in GFR-12A format, the final report on the training program and other required documents, etc.

Infrastructure and Technology Support

The objective of the program:

• To set up a permanent marketing infrastructure in big towns/ metropolitan cities to provide direct marketing facilities to the handicrafts artisans/handloom weavers.
• Provide a marketing platform to the wholesaler/retailers/consumers and foreign buyers to reach the potential target segment by showcasing the entire range of handicrafts products.
• To establish a platform through which India’s heritage traditional arts and craft can be popularized amongst artists, scholars, designers, and the interested public.

The Organization / Implementing agency first has to submit a project report indicating the management structure, inventory management, financial support available, channel for distribution & its mechanism, etc. Depending on the report the financial support & its extent may be decided.

Marketing Support And Services

The objective of the program:

• To organize an exclusive fair for handicraft products in India at a grand scale to increase the visibility of the products in the domestic market to support local level awareness programs that target the general public and spread awareness about our crafts.
• To promote the products and create a brand image for Indian handicrafts in international markets.

The first installment of 50% of the amount will be released as advance and balance as reimbursement on submission of audited statement of accounts of expenditure and performance report of the event and its acceptance by the competent authority.

Research and Development

Evaluation / Impact Assessment Studies of Handicrafts schemes and development of IT-based applications for monitoring and collecting applications in R&D components. Funding will be need-based.

Flexible need-based funding for NIFT, NID, NCDPD, EPCH, IIFT, IIMs, and other similar public bodies. The project will be appraised and approved by respective PAMCs after due consideration of project outcomes. Financial assistance for DPR preparation shall be provided @ of 2% of the project cost up to a maximum of Rs. 2.00 lakhs per project.

Direct Benefit to Artisans

The objective of the program is to support the artisans during their old age. The scheme is designed to give a boost to the handicraft sector in India. Under the Direct Benefit to the artisans, the following intervention will be carried out:

• Support to artisans in indigent circumstances
• Credit Guarantee Scheme
• Interest Subvention Scheme
• Issue of Identity Cards and creation of the database
• Margin Money