ISSN (Print): 2328-3734, ISSN (Online): 2328-3696, ISSN (CD-ROM): 2328-3688 American International Journal of Research in Humanities, Arts and Social Sciences AIJRHASS 19-127; © 2018, AIJRHASS All Rights Reserved Page 129 Available online at http://www.iasir.net AIJRHASS is a refereed, indexed, peer-reviewed, multidisciplinary and open access journal published by International Association of Scientific Innovation and Research (IASIR), USA (An Association Unifying the Sciences, Engineering, and Applied Research) Indian Handicraft Industry and Globalization: An Analysis of Issues and Challenges Ishfaq Majeed Research Scholar at the Department of Sociology A.M.U, Aligarh, Utter Pradesh, INDIA Abstract: India is a rich country in terms of cultural heritage and ethnic traditions and also the hub of handicraft products. Handicraft Industry in India is highly labor intensive, decentralized and unorganized sector. Handicraft sector is economically very vital from the point of the high proportion of value addition, low capital investment and high capacity for export and foreign exchange earnings. Indian society and economy has changed extremely from the past few decades. In the Globalization era, there has been an ever-increasing integration of domestic economies into the international economy through trade and investment rules, with the help of technological advancement, which in turn affects people’s jobs, livelihood and incomes. As India opens up doors to the multinationals during 1991, it affected all the sectors of the economy including handicraft sector. Indian handicrafts exports and employment reached at a commendable height while on the other hand, globalization has intensified the precarious existence of artisans in the handicraft industry through increasing global competition, changes in consumer preferences and cultural tastes. Many of the artisan products have been facing the extinction in the globalized/liberalized market economy. Even though there are some governmental and non-governmental interventions in place, they are either ineffective or fail to reach the majority of the artisans. In the context of globalization the situation of the artisans worsened rather than diminishing the marginal status of artisans in handicraft industry in India. The purpose of the present paper is to study an impact of globalization on handicraft industry and artisans, challenges affecting the handicraft industry and artisan, and government policies and programs for the promotion of handicraft industry and artisan in India. Keywords:Handicraft Industry, Artisan, Globalization, New Economic Policy, Challenges, Policies and Programs. I. Introduction India is a rich country in terms ofcultural heritage and ethnic traditions and also the hub of handicraft products. Cultural diversity of India provides plenty of remarkable art and craft products. Handicrafts are a unique feature of a particular culture through local craft skill and material. Handicraft Industry is highly labor intensive, decentralized and unorganized sector in India. Handicraft sector is the second largest source of employment after agriculture and forms a significant proportion of the export economy and playing a key role in economic development. Handicraft products are those produced by artisans, either completely by hand, or with the help of hand tools. The special nature of artisanal products derives from their distinctive features, which can be utilitarian, aesthetic, artistic, creative, culturally attached, decorative, functional, traditional, religiously and socially symbolic and significant Artisan goods can be classified into several categories, the main among them are basket, leather, metal, pottery, textiles and wood 1 . Handicraft products are made solely by human hand without using any kind of complicated machinery or equipment’s. The Annual Report 2017-18 of the Ministry of Textiles, Government of India suggests that the employment in the handicraft sector is 68.86 lakhs. Out of which, 30.25 lakhs are males and 38.61 lakhs are female artisans. The production of handicraft in India is Rs. 46930 crores and export Rs. 34394.30 crores 2 in 2016-17. India has a less than 2% share of the total world handicraft exports, as this sector has not yet been sincerely explored. This handicraft sector is economically very vital from the point of the high proportion of value addition, low capital investment and high capacity for export and foreign exchange earnings. The handicraft industry is a part of our culture and plays an important role in introducing the material culture richness of our culture to others. In India, where manpower is abundant and capital is scarce, the argument 1 Definition of artisanal products by the UNESCO/ITC Symposium, Crafts and the International Market: Trade and Customs Codification - Manila, October 6-8, 1997 2 Ministry of Textiles, Govt. of India, Annual Report 2017-2018