The Indian artisan sector stands at a pivotal moment, poised between preservation and progress. With over 200 million people engaged directly or indirectly, this sector is not just an economic powerhouse but also a custodian of India’s cultural heritage.
However, systemic challenges—ranging from fragmented supply chains to insufficient market access—continue to impede its potential.
If the sector is to thrive, market players must move beyond episodic interventions and adopt a long-term, ecosystem-driven approach that ensures continuity, equity, and innovation.
A complex, fragmented landscape
The artisan economy in India is deeply intertwined with rural livelihoods, women’s employment, and cultural preservation. Yet, it remains highly fragmented, spread across thousands of clusters, each specialising in a distinct craft form—from Banarasi silk weaving to Jaipur’s blue pottery. While the global handicrafts market is projected to grow at a CAGR of 10.15 per cent by 2032, Indian artisans continue to grapple with market uncertainties and financial vulnerabilities.
One of the major hurdles is the reliance on intermediaries, which significantly reduces artisans’ earnings. Government initiatives like the PM Vishwakarma scheme and the National Handicrafts Development Programme (NHDP) continue to do a lot in the space. However access to finance, modern supply chains, and formal markets still remains elusive for many artisans. A more cohesive, market-driven approach is needed to integrate these artisans into the mainstream economy.
Bridging value chain inequities
A critical issue in the artisan sector is the disparity in value distribution. Artisans, who are at the heart of production, often receive the smallest share of profits. The existing model sees retailers and intermediaries commanding significant margins while artisans struggle to cover basic costs. To address this imbalance, businesses must adopt fair trade practices and transparent pricing models.
For instance, organisations like Rangsutra and Karghewale have successfully implemented direct-to-consumer (D2C) models, cutting out middlemen and ensuring that artisans receive a fairer share of revenues. Similarly, large retailers such as Fabindia and Good Earth have worked on fostering ethical supply chains that prioritise fair wages and sustainable livelihoods.
Additionally, technology offers new avenues to reconfigure the value chain. The Open Network for Digital Commerce (ONDC) is a promising step in democratising e-commerce for artisans, allowing them to access larger markets without being tied to monopolistic online platforms. Furthermore, blockchain technology can be leveraged for product authentication and provenance tracking, which will enhance trust and enable artisans to command premium pricing.
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Innovation as a growth catalyst
A fundamental challenge facing artisans today is the ability to balance tradition with market relevance. While traditional techniques hold immense cultural value, they must evolve to meet contemporary consumer demands. Successful models showcase how design innovation, technological adoption, and strategic collaborations can drive sectoral transformation.
Brands like Raw Mango have successfully revived traditional weaves by infusing modern aesthetics, making handloom textiles aspirational rather than niche. Similarly, initiatives like the Vimor Museum of Living textiles have played a crucial role in not just preserving textile heritage but also educating new generations of weavers and consumers alike.
Further, institutions such as the National Institute of Design (NID) and the National Institute of Fashion Technology (NIFT) have partnered with craft clusters to modernise traditional techniques, develop new product lines, and enhance the global competitiveness of Indian handicrafts. The Chanderi Cluster, for instance, has benefited from design interventions that have enabled weavers to cater to high-value urban and international markets.
Role of markets
While government schemes have laid the groundwork, the market must actively engage in amplifying these efforts. Large-scale retailers and e-commerce platforms can integrate artisan products into mainstream retail, reducing artisans’ dependency on government aid.
Public-private partnerships (PPPs) can further bridge the gap between policy initiatives and market execution. For example, Flipkart Samarth and Amazon Karigar have provided digital storefronts for artisans, enabling them to access a broader consumer base without the burden of intermediaries.
Moreover, corporate involvement in skill development programs can enhance artisans’ competitiveness. By investing in training initiatives aligned with global design trends, companies can ensure that artisans produce market-ready products, improving both quality and demand.
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Elevating the artisan narrative
A strong brand identity is crucial for artisans to thrive in a competitive market. Artisanal products need to be positioned as luxury and culturally significant items rather than just commodities. India must shift from being an outsourcing hub to a strategic partner in the global handmade economy. Successful brands like Taneira by Tata and Aadyam Handwoven by Aditya Birla have already demonstrated how storytelling, authenticity, and quality positioning can elevate artisanal products into aspirational lifestyle choices.
The emphasis should be on highlighting cultural narratives, incorporating Geographical Indication (GI) tags, and adopting ethical production standards. By leveraging these branding tools, Indian crafts can command premium pricing and establish themselves as unique, high-value offerings in both domestic and international markets.
Engaging knowledge for artisan growth
Knowledge-sharing platforms, incubators, and industry networks must play a role in fostering innovation. Collaborations between academia and craft clusters can drive research-driven interventions, ensuring sustainability and adaptability. The success of Kala Raksha Vidhyalaya in integrating traditional knowledge with contemporary design education is a testament to the potential of such models.
Additionally, craft documentation and digitisation efforts must be prioritised. Digital platforms can serve as knowledge repositories, ensuring that artisanal techniques are not lost to time but instead evolve with changing market dynamics. This would also enable artisans to explore new markets and product lines while preserving their craft heritage.
The path forward
The future of India’s artisan sector depends on a paradigm shift—from a reliance on subsidies and sporadic interventions to a self-sustaining, market-integrated model. Businesses, investors, and policymakers must come together to create a more equitable ecosystem where artisans are not just producers but also stakeholders in their own growth story.
India’s artisanal heritage has the potential to be a defining force in the global creative economy. The challenge now is to ensure that the artisans who sustain this heritage are not left behind. By fostering equitable value chains, embracing innovation, and ensuring artisans are active market participants, we can move toward a future where craft is not merely preserved but truly prospers.
The artisan economy is not just about sustaining traditions; it is about building a resilient, thriving industry that supports millions of livelihoods. A more inclusive, market-driven approach—fueled by ethical business practices, technological innovation, and strong institutional backing—can ensure that the sector flourishes in the decades to come. The opportunity to redefine India’s artisanal legacy is at our doorstep; it is time to seize it.
Harminder Sahni is Founder and Managing Director at Wazir Advisors. Jerold Pereira is Managing Director, The/Nudge Forum.
This article has been published in collaboration with The/Nudge.
Views are personal.
(Edited by Aamaan Alam Khan)