The Kutch embroidery of Gujarat or Zari-Zardozi and Chikankari of Uttar Pradesh, wooden toys of Karnataka or bamboo craft of Assam, puppets of Rajasthan or Sikki, Tikuli and Madhubani arts of Bihar are not only the traditional arts of the respective provinces but also form an important source of alternative income for the artisans. This is one of those market segments that have led India to establish its distinct identity in the international market.

• In non-agricultural or lean seasons, handicrafts become an alternative means of subsistence for the rural population and safeguards them from food insecurity. In this way, handicrafts become an important source of livelihood for a large chunk of the Indian population.
• There were 68.86 lakh artisans as per the census of handicrafts conducted during 11th Five Year Plan. The magnitude and strength of this sector can be very well understood from this fact.

Role of handicrafts in the tourism sector:

• Souvenir is a tourism ritual.
• Handicrafts add value to the tourist spots and attract tourists providing an income for local artisans and other petty vendors/service providers in the surroundings.
• Despite the scarcity in data, it is evident that there is an important contribution of handicrafts to the tourism sector of the country.

Promoting and Marketing Handicrafts:

• Due attention has also been given on the marketing of these valuable products.
• Export Promotion Council for Handicrafts (EPCH) organises product-specific shows and also ‘Indian Handicrafts and Gifts Fair bi-annually.
• There have been efforts like product based-exhibitions and live demonstrations by artisans for promoting these products abroad.
• Market Development Assistance (M.D.A) and Market Access Initiative (M.A.I.) envision better marketing of these products through fairs, exhibitions and producers-buyers meets.
• ‘India Handloom Bazaar’, an online marketing portal is based on marketing of the handicrafts through facilitating direct interaction between buyers and sellers.
• The focus is now on the artisans and their enterprises to utilise the facilities enabling them to contribute towards our economy as well as socio-economic upliftment of the community.
• On a macro level, initiatives to strengthen the sector will support in preserving this cultural heritage and transferring it to the next generation as a potential source of livelihood.
• While on the micro level, various socio- economic issues like unemployment, poverty, migration and indebtedness will be addressed.
• In turn, these will add to strengthening of the Indian economy and thereby ameliorating the conditions of Indian society.
• Geographical Indication (GI) tag  enhances the credibility of the products.

GI tag is the sign on the product showing its region of origin. Some of the handicrafts which have received GI tag are-Kangra paintings, Varanasi brocades and saris, Bustar wooden craft, Villianur terracotta works etc.