Limited access to credit, infrastructure facilities affecting small enterprises in Handicraft industry, says Amita Puri of AIACA

In a bid to understand the technicalities and challenges faced by Micro, Small and Medium Enterprise engaged in Handicraft Industry or Craft works, Amita Puri, Executive Director of All India Artisans and Craftworkers Welfare Association (AIACA) exclusively to capture her views on the various opportunities for the segment and AIACA's aim for the promotion of India's handicraft industry.

 

 

-What are the obstacles faced by artisans and small manufacturers to meet the high industry standards?

 

Amita Puri: Artisans have limited access to credit, infrastructure facilities, or even information about market demands resulting in their marginalization of the artisan and their reduced capacities to access resources or meet specifications. Besides, insufficient investment for the skill development is also a major challenge.

 

 

 

-How do handicraft fairs and exhibitions help micro and small entrepreneurs?

 

Amita Puri: Fairs and exhibitions provide a direct platform for sale of goods (direct market channel), leading to a strengthening of livelihood especially for small entrepreneurs who cannot invest in a space of their own. They also provide a direct connect with consumers leading to a better understanding of current trends and preferences; in addition to providing an opportunity to connect with other entrepreneurs in the same field.

 

 

 

-What are the future goals of AIACA for the elevation of small craftworkers and artisans?

 

Amita Puri: AIACA seeks to touch lives of craft workers by:- a) Policy advocacy for a favourable environment towards enterprise growth and enhancing livelihoods of craftworkers
b) Providing capacity building support to help producer groups and enterprises establish and run viable businesses that are able to compete in the mainstream economy.

c) Through the 'Craftmark Initiative' under which artisans are able to differentiate their products as hand-made and therefore improve their incomes.

 

 

 

-Finance is a major challenge to most Micro, Small and Medium Enterprises. What kind of approach should be taken up to moderate the situation in this particular sector?

 

Amita Puri: It should be tailored to the needs of the enterprises and be easily accessible. Also, sufficient linkages and awareness should be created for the enterprises to avail of the same.

 

 

 

-Chinese goods are giving tough competition to Indian goods. Please share your inputs on this.

 

Amita Puri: The Chinese government has managed to provide an environment and physical infrastructure conducive for the growth of the industry, which is still absent in India to a large extent. In addition, the mass production leads to economies of scale and lower prices resulting in a virtual swamp of the market by Chinese goods. Therefore, the government needs to do more in terms of regulatory provisions to promote small scale enterprises and in terms of availability of infrastructure. It also needs to create disincentives and enforce them for dumping of goods by other countries.

 

 

 

-Do you think that developing handicrafts as an organized sector will add value to the current status?

 

Amita Puri: As a result of being organized, it will definitely affect the sector’s ability to ask for, and influence environment favourable to its growth. It will also enhance the sectors ability to access resources. Moreover, with regulations pertaining to organized sector applying here, it will support an enhancement in the artisan’s earnings.

 

 

 

-Despite the growth of handicrafts industry in India, the average earnings of the craftsmen when compared to other fields is very low. Hence the younger generation is moving onto other fields with only the elder craftsmen left over. Comment

 

Amita Puri: It is true that the remuneration to craftspeople is low as compared to other professions which toppled with other issues is leading to migration from this sector. There is a strong need to use an approach that knits together craft techniques, market forces, culture, environment and the aspirations of the craft workers to create regular work and increased income levels for the artisans. A sense of dignity and pride in their skill will help not only to retain existing but also grow the number of craftspeople associated with the sector.

 

 

 

-What are the policies and measures needed for the upliftment of Handicraft industry?

 

Amita Puri: A higher financial allocation in the budget for its activities will help this sector. Ensuring regular supply of raw material at reasonable rates, easy access to finance, technology and information, capacity building to ensure skill development, strong marketing support with separate branding for the sector, proper implementation of government schemes, tax structures and regulatory policies that facilitate growth would all lead to ensuring a healthier industry.