Factors That Affect Growth

Though India is one of the chief suppliers of wooden handicrafts in the world market, its share in world imports is fairly insignificant. Mass existence of craftsmen combined with an excellent production base have failed to aid India towards cashing on the existing opportunities.

There are a number of factors that affect the growth of the Indian wooden handicraft sector.
They are :

• » The Indian handicrafts industry is a decentralized one. As a result, the products are not sufficiently remunerative. The artisans work on a part-time basis, while taking up other means of alternate options of livelihood.
  
  
• » Production of wooden handicrafts in India is chiefly dependent on the raw materials available locally. Deforestation comes across as one of the main reasons for the setback in production levels of wooden handicrafts.
  
  
• » The wooden handicrafts sector is based in rural India where lack of proper infrastructure and working capital is a major cause for concern. Weak infrastructure leads to delay in delivery and affects the quality of finished products.
  
  
• » The Indian wooden handicrafts sector is plagued by poor marketing strategies. Craftsmen are not independent enough to resort to direct marketing of their own products. As a result, they are unable to handle the threat to their industry from machine-made products.
  
  
• » Most of the craftsmen in the wooden handicraft sector live below the poverty line, and are illiterate. They are also ignorant of the benefits bestowed on them by the Government.
  
  
• » Wooden handicrafts are sold at least three to four times the price paid to the craftsmen. Improper pricing mechanisms, and the intervention of middlemen deprive the artisans from getting their due.