National Handicrafts Development Programme: Direct Benefit to Artisans – Supports to Artisans in Indigent Circumstances

Handicrafts form an integral part of India’s unorganized sector and are an important driver of rural employment, cultural preservation, and economic development. Traditionally, handicrafts started as a part-time activity in rural households but have transformed into a thriving economic activity due to increasing domestic and global market demand. The sector provides livelihoods to millions of artisans, including in backward and inaccessible areas. Despite its potential, the handicrafts sector faces challenges due to its unorganized nature, lack of education, limited access to capital, poor exposure to modern technology, absence of market intelligence, and weak institutional support.

To address these issues and promote sustainable development of handicrafts, the Government of India has launched the National Handicrafts Development Programme (NHDP) and the Comprehensive Handicrafts Cluster Development Scheme (CHCDS) for the period 2022-23 to 2025-26. These schemes aim to empower artisans, enhance their skills, improve market access, provide infrastructural and technological support, and preserve India’s rich craft heritage while ensuring sustainable livelihoods.

Dates and Duration

• Scheme Period: 2022-23 to 2025-26
• Implementation: Across India, covering all eligible artisans and handicrafts clusters.
• Event-Based Assistance: Marketing events, fairs, exhibitions, buyer-seller meets, and fashion shows organized throughout the year as per the annual calendar.

Objectives of the Scheme

The NHDP and CHCDS have been designed with the following objectives:

1. Empower Artisans: Provide financial, infrastructural, and technical support to handicraft artisans to promote self-reliance and sustainability.
2. Skill Development: Upgrade the skills of artisans through training, design interventions, and exposure to modern techniques.
3. Market Linkages: Promote domestic and international marketing of handicraft products through fairs, exhibitions, fashion shows, and buyer-seller meets.
4. Cultural Preservation: Preserve and protect India’s heritage and traditional crafts while encouraging contemporary adaptation.
5. Financial Security: Enable artisans to benefit from government welfare schemes, social security, insurance, and old-age pensions.
6. Cluster Development: Support integrated development of handicrafts clusters to ensure holistic growth and infrastructure improvements.
7. Innovation and R&D: Promote research, innovation, and technology adoption to enhance quality, productivity, and competitiveness of handicraft products.

Key Features of the Scheme

A. National Handicrafts Development Programme (NHDP)

1. Marketing Support and Services (MSS):
   • Domestic Marketing Events: Organizing Gandhi Shilp Bazaars, hiring stalls in national events, craft demonstration programs, and fashion shows.
   • Buyer-Seller Meets: Domestic and international buyer-seller meets and reverse buyer-seller meets to connect artisans with major buyers.
   • Virtual Fairs/Exhibitions: Organizing online events to promote handicrafts and expand market outreach.
   • Publicity and Brand Promotion: Print, electronic, social media campaigns, and fashion shows to establish brand identity for Indian handicrafts.
2. Skill Development in Handicraft Sector:
   • Design and skill enhancement workshops.
   • Capacity building for new entrants and upskilling of existing artisans.
3. Ambedkar Hastshilp Vikas Yojana:
   • Financial assistance to traditional artisans from marginalized communities.
   • Focus on sustaining heritage crafts and improving livelihood opportunities.
4. Direct Benefit to Artisans [Welfare]:
   • Social security schemes, insurance coverage, and pensions for elderly artisans.
   • Inclusion under welfare programs like Pradhan Mantri Jeevan Jyoti Yojana, Aam Aadmi Jeevan Jyoti Yojana.
5. Infrastructure and Technology Support:
   • Modernization of production units, common facility centers, storage, and display facilities.
   • Assistance for technology adoption to improve quality and productivity.
6. Research & Development:
   • Study of market trends, craft preservation, and innovation.
   • Collaboration with academic institutions and design centers.

B. Comprehensive Handicrafts Cluster Development Scheme (CHCDS)

• Integrated development of handicraft clusters through financial and technical assistance.
• Strengthening artisan networks and self-help groups (SHGs).
• Support for infrastructure, marketing, and skill development within clusters.

Financial Assistance

The scheme provides financial support under various components. Key examples include:

1. Gandhi Shilp Bazaar:
   • Space Rental: ₹1,500/day per stall (Class A cities), ₹1,200/day (Class B)
   • Publicity: ₹300/day per stall
   • TA/DA for artisans: ₹4,000 (TA), ₹800/day (DA)
   • Freight Charges: ₹2,000 per participant
   • Miscellaneous and administrative charges: 5% and 3% respectively of relevant heads
2. Hiring Stalls in Other Events:
   • Rent per stall per day: ₹2,500
   • TA including freight charges: ₹6,000 per participant
   • DA: ₹500-800 per day per artisan
   • Miscellaneous expenses: 5% of total
3. Craft Demonstration cum Awareness Program:
   • Maximum permissible funding: ₹5.00 lakh (Class A cities)
   • Virtual events: ₹2.00 lakh
4. Fashion Shows:
   • Space and infrastructure: ₹10,00,000
   • Publicity: ₹5,00,000
   • Honorarium for models/choreographers: ₹2,00,000
   • Purchase of handicraft products from awardee artisans: ₹2,50,000
   • Boarding and lodging: ₹3,00,000
   • Miscellaneous: ₹1,12,500
   • Administrative: ₹70,875
   • Total: ₹24,33,375
5. Buyer-Seller Meets (Domestic, 5 days, 50 buyers & 50 artisans):
   • Infrastructure: ₹5,00,000
   • Buyer TA: ₹5,00,000
   • Buyer stay: ₹7,50,000
   • Artisan TA & Freight: ₹3,00,000
   • DA: ₹2,00,000
   • Publicity: ₹1,20,000
   • Insurance: ₹50,000
   • Miscellaneous: ₹1,21,000
   • Admin Charges: ₹72,600
   • Total: ₹26,13,600
6. Buyer-Seller Meets Abroad / Reverse BSM:
   • Funding up to ₹60 lakh (100% of actual cost)
   • Covers space rent, interiors, TA, publicity, boarding/lodging, documentation, and miscellaneous.
7. Virtual Fairs/Exhibitions:
   • Funding range: ₹15-22 lakh depending on participation
   • Miscellaneous & administrative expenses: 20% and 3% respectively of main expenditure
8. Publicity and Brand Promotion:
   • Funding up to ₹1 crore per event for print, electronic, social media campaigns

Eligibility Criteria

1. Handicraft artisans, craft persons, and entrepreneurs engaged in traditional or contemporary crafts.
2. Participation in events must be approved by competent authority.
3. Artisans registered with Development Commissioner (Handicrafts) or affiliated State/Cluster body.
4. Self-help groups (SHGs) or cooperative societies of artisans are eligible for cluster-based schemes.
5. Start-ups or enterprises developing handicraft products for mass-market or niche markets may participate in special programs under CHCDS.

Reservation Policy

• Preference is given to artisans from marginalized, economically weaker sections, and rural areas.
• Special schemes like Ambedkar Hastshilp Vikas Yojana focus on Scheduled Castes, Scheduled Tribes, and other backward communities.
• Participation of women artisans is encouraged, particularly in skill development and cluster activities.

Distribution of Financial Assistance

• Financial assistance is provided on a 100% grant basis for approved events and programs, subject to prescribed limits.
• Cluster-based interventions may receive grants to cover infrastructure, skill development, marketing, and welfare activities.
• Funding for buyer-seller meets and fairs abroad is disbursed as per actual expenditure, with ceilings.

Application Process (Step by Step)

1. Registration:
   • Artisans/SHGs/Clusters register with the Development Commissioner (Handicrafts) portal or designated State/UT body.
   • Submit personal, craft, and enterprise details.
2. Proposal Submission:
   • Submit proposals for participation in marketing events, skill development programs, infrastructure support, or cluster development schemes.
   • Include detailed cost estimates and required approvals.
3. Screening and Approval:
   • Proposals evaluated by competent authority.
   • Allocation of financial assistance as per scheme guidelines.
4. Disbursement of Funds:
   • Funds released in installments depending on type of program (advance for event-based, reimbursement for completed activities).
   • Utilization Certificate required post-event.
5. Event/Program Execution:
   • Artisan participation in fairs, exhibitions, or skill development programs as approved.
   • Adherence to reporting, attendance, and quality standards.

Renewal Policy

• Annual or event-specific programs may be renewed based on successful completion and reporting.
• Clusters and SHGs can reapply for subsequent financial years.
• Artisans can participate in multiple events provided they meet eligibility and performance standards.

Withdrawal Policy

• Financial assistance can be withdrawn in case of:
  1. Misuse of funds.
  2. Non-participation or incomplete participation in approved events.
  3. Submission of false information.
  4. Breach of scheme guidelines or quality standards.
• Recovery of funds may include pro-rata deduction for partial participation or full recovery for complete non-compliance.