A recent study has exposed the precarious financial situation of handloom and handicraft artisans across India, with average monthly earnings hovering around ₹7,000, significantly below the mandated minimum wage. The research, which examined the sector in five key states—Tamil Nadu, West Bengal, Assam, Rajasthan, and Uttar Pradesh—highlights the economic vulnerability of an estimated 61.1 lakh workers, who constitute approximately 26% of those employed in manufacturing establishments.
According to details received by The Chenab Times, the study titled ‘Economics of Indian Craft’ was conducted by the Institute for Human Development for the Crafts Council of India during 2023-2024. It surveyed 33.9 lakh establishments, comprising 17.8 lakh handloom units and 16.1 lakh handicraft units. The findings underscore critical concerns regarding fair earnings and fair trade practices within these traditional industries.
The report indicates that a substantial portion of these artisans, comprising family workers and unpaid labourers, face immense financial instability. While 55% of these units are located in rural areas, often serving as a fallback option during difficult times, 45% are situated in urban settings, suggesting evolving economic landscapes for craftspeople.
The average gross value added (GVA) per worker in the sector was estimated at approximately ₹270 per day, which falls considerably short of the minimum wage prescribed by governments. This paltry amount often represents the entirety of earnings for individuals who are typically the sole operators of their small-scale establishments. The study further noted that a significant number of these units are home-based, with a very small percentage employing more than five workers, underscoring the proprietary nature of these enterprises.
Competition from mass-produced goods poses a significant challenge, with larger entities able to offer similar products at lower prices. E-commerce marketplaces, while offering potential reach, also facilitate the sale of powerloom imitations at considerably reduced costs, further impacting the livelihood of traditional artisans. For instance, Bandhej sarees are available on platforms like Meesho for as low as ₹289, and Zari sarees on Amazon starting at ₹400.
The study also pointed to a stagnation or decline in production across several states over the past decade. In Tamil Nadu, 66% of handloom units reported stagnation or decline, followed by Uttar Pradesh (51%), Assam (50%), and West Bengal (48%). Rajasthan reported a 30% decline. Key concerns raised include the shortage of skilled workers, lack of adequate workspace, and the copying of traditional designs.
Furthermore, the research highlighted the extremely limited access to organised marketing channels and a low proportion of formally trained artisans. In Rajasthan, women proprietors constitute a significant 94% of the sector, indicating a large female workforce, yet many of these establishments remain unregistered and lack formal accounting practices.
The findings reflect a broader trend in South Asia, where artisans often experience income instability, exacerbated by factors such as fluctuating tourist markets, limited access to e-commerce, and a lack of regulatory protection for their businesses and wages. In India, revenue from artisan goods has seen a significant decrease, partly due to external factors like the pandemic, which impacted tourism-dependent sales.
The study implicitly calls for a re-evaluation of policies and support systems for the handloom and handicraft sector. Addressing issues of fair wages, market access, skill development, and formalisation is crucial to ensure the sustainability of these traditional crafts and the livelihoods of millions of artisans across the country.
The Chenab Times News Desk