India’s rich cultural heritage is exemplified by its diverse handicrafts, which not only preserve traditional artistry but also contribute significantly to the nation’s economy. To bolster this sector, the Indian government has implemented various schemes aimed at supporting artisans and enhancing the export potential of handicrafts. Notable among these initiatives are the Comprehensive Handicrafts Cluster Development Scheme (CHCDS) and the Amended Technology Upgradation Fund Scheme (ATUFS).

Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

Launched by the Ministry of Textiles, the CHCDS aims to create world-class infrastructure that caters to the business needs of local artisans and small and medium-sized enterprises (SMEs). The scheme focuses on scaling up infrastructure and the production chain within handicraft clusters that have remained unorganized and lagged in modernization. By integrating scattered artisans and building grassroots enterprises, the CHCDS seeks to enhance productivity and market competitiveness.

The primary objectives of the CHCDS include:

• Infrastructure Development: Establishing common facility centers, raw material banks, and design and resource centers to provide artisans with access to essential resources.
• Skill Upgradation and Design Development: Conducting training programs and workshops to improve artisans’ skills and introduce contemporary designs that appeal to global markets.
• Market Access: Facilitating participation in domestic and international marketing events, trade fairs, and exhibitions to expand market reach.
• Cluster Development: Focusing on the integration of scattered artisans, building grassroots enterprises, and linking them to SMEs in the handicrafts sector to ensure economies of scale.

The scheme was approved with a total outlay of ₹160 crore and is set to continue until March 2026. Under the CHCDS, mega handicraft clusters comprising 10,000 artisans are selected for overall development, ensuring that the benefits reach a substantial number of artisans across the country.

Amended Technology Upgradation Fund Scheme (ATUFS)

The ATUFS is a credit-linked subsidy scheme designed to facilitate the modernization and technological advancement of the textile and apparel industry, which includes segments of the handicraft sector. Implemented by the Ministry of Textiles, the scheme aims to promote ease of doing business, generate employment, and encourage exports.

Key features of the ATUFS include:

• Capital Investment Subsidy: Providing a subsidy of 15% for the garmenting and technical textiles segments, and 10% for other segments, subject to a cap.
• Interest Subsidy: Offering an interest subsidy of 5% for seven years on loans taken for technology upgradation.
• Focus on Sustainability: Encouraging the adoption of sustainable and environmentally friendly technologies, including the use of renewable energy sources in textile units.
• Inclusion of Various Sectors: Extending benefits to sectors such as jute, handloom, silk, and wool, thereby encompassing a broad spectrum of the textile industry.

As of February 2024, the government had released ₹1,416.50 crore in 6,448 cases under the ATUFS in the preceding three years, underscoring its commitment to the sector’s technological advancement.

Impact on Artisans and Exporters

These government initiatives have significantly impacted artisans and exporters by:

• Enhancing Product Quality: Access to modern tools and technologies has enabled artisans to improve the quality and consistency of their products, making them more competitive in international markets.
• Expanding Market Reach: Participation in global trade fairs and exhibitions, facilitated by these schemes, has opened new avenues for exporters, leading to increased demand for Indian handicrafts.
• Sustaining Traditional Crafts: By providing financial and infrastructural support, these schemes have helped preserve traditional crafts that might have otherwise faced decline due to lack of resources and market access.

How Altus Exports Can Assist Indian Manufacturers

While government schemes provide a robust foundation, navigating the complexities of international trade requires expertise and strategic partnerships. Altus Exports specializes in assisting Indian manufacturers in exporting their products to global markets.

Services Offered by Altus Exports:

• Market Analysis: Conducting comprehensive market research to identify potential markets and understand consumer preferences.
• Regulatory Compliance: Assisting manufacturers in adhering to international standards and regulations, ensuring smooth entry into foreign markets.
• Logistics Support: Managing the logistics of exporting goods, including shipping, customs clearance, and documentation.
• Marketing and Branding: Developing effective marketing strategies and enhancing brand visibility to attract international buyers.

Partnering with Altus Exports

Indian manufacturers can partner with Altus Exports to leverage their expertise in international trade. By collaborating, manufacturers can focus on their core competencies—crafting exceptional products—while Altus Exports handles the intricacies of exporting. This partnership ensures that Indian handicrafts reach a wider audience, thereby increasing sales and promoting cultural heritage globally.

To explore partnership opportunities, manufacturers can visit Altus Exports’ Manufacturer Partnership page.

In conclusion, the Indian government’s initiatives, coupled with strategic partnerships with export facilitators like Altus Exports, provide a comprehensive support system for artisans and manufacturers aiming to expand their presence in international markets. By leveraging these resources, the Indian handicraft sector is well-positioned for sustained growth and global recognition.