NSIC : The New Road for Art Based Enterprises

By Manoj Lal | General Manager | National Small Industries Corporation Limited

Background

In India, a large number of MSMEs reside in many cities, small towns and distant villages. The Government of India has set rolling several growth initiatives for the micro, small and medium enterprises by formulating support systems and new policies, few of which are presently functional. However, these MSMEs comprises of an un-organised set of entrepreneurs, who have not been formally educated but have been part of the traditional family enterprise for generations. Their soul and strength lie in creating their product and taking forward and conserving their traditional art forms, further contributing in restoring our rich heritage.

The Indian Art based Enterprises industry in India is spread all over the country employing approximately over six million artisans. To match the demand with quality supply of handicrafts products, there is a need for a greater institutional, technological & financial support in this sector and also innovation in design to cater to the universal trends & demands. Moreover, Handicrafts, over the last few years have transformed from mere shelf decorative to daily useable category (utilitarian). It is thus the primary need to constantly update, develop & add new products; hence, one cannot imagine surviving in the market with the same old products.

India being one of the most hand-skilled and Art-based nation in the world. Alarmingly, these talented communities are rapidly shrinking and need immediate attention and remedies to continue showcasing crafts and skills – the ‘parampara’ forming an integral part of the heritage of India. Statistical data for the handicrafts industry in the country is available. As per data from various art enterprise foundation’s – Handicraft Industry is a significant part of Cultural industries. Handicrafts are unique expressions and represent a culture, tradition and heritage of a country. The global handicraft Industry is valued at USD 526.5 billion (2018).

The Indian Art based Enterprises has been globally considered, as a culturally rich heritage of India owing to which Indian Handicrafts are in huge demand all over the world and due to its unique appeal and craftsmanship – Indian Handicraft Industry is showing continuous growth rate of 15 per cent every year (though the exports has plummeted in the last 2-3 years owing to rupee appreciation and recession, especially in USA which is the biggest buyer of Indian handicraft) while its contribution in world market is mere 1.5%. Thus, there is a big opportunity to facilitated this sector and increase the domestic and global market share with the efforts of various schemes of NSIC.

Market Scenario

To quote further as per an article in Business Economics, dated 30th July 2018 – “The small scale industries – including handicrafts can play a major role in the development of the economy of both the developed and developing countries. The 90-95% of the total industrial products of the world is produced in small workshops run by less than 100 people. The Indian handicraft is one of the largest employment generators and accounts for a significant share in the country’s exports. The industry is fragmented and unorganised with more than seven million regional artisans and more that 67,000 exporters promoting regional art and craftsmanship in the demotic and global markets.

The total export of handicrafts from India is expected to nearly double to $2.7 billion in FY 2015 -16 and is expected to increase further to $3.8 billion by FY 2020 -21. In 2015-16, Indian Handicrafts export stood at $4.5 billion which is up by approximately 15.4% of the previous year’s exports. Exports of Indian handicrafts have increased at around 16.4% since the last five years and hence offers enormous potential of growth in this sector.

Keeping in mind the current scenario, the challenges faced in marketing products is humongous for these MSME’s or business enterprises. Certainly to bring these art based enterprises from the grassroot levels to market their product on an world platform will be a dream come true for each one them. Although most of them are too naïve for this transition, yet it is a great opportunity for NSIC to migrate these MSMEs or business enterprises and offer them the benefits of NSIC schemes, new programs, at a nominal cost and increase NSIC outreach into new sectors and arena.

Further in a recent measure to boost the economic growth the Cabinet Minister of Finance in her press statement dated 14th Sept, 2019, stated that Traditional products industry should be enabled to effectively harness e-commerce for exports and mass enrolments of Artisans across India may be done with the help of Ministry of Textiles and other various PSUs & organisations, to encourage larger participation of MSME’s.

NSIC – The New Road for Art Based Enterprises

A New Business Vertical of Art based Enterprises is being set up at NSIC. This vertical is being set up to promote Artisans, Traditional products, and various forms of Arts. These artisans have been contributing to protect and revive these Art forms, Heritage and traditional knowledge. Since the business of these Traditional eco-friendly products has moved from retail sale to e-commerce platforms. Making a virtual presence in the current market situation has become very important and thus fundamental facilitation is required for these Art Based Enterprises to migrate to world markets & e-commerce portals to promote products sales. Additionally, this would also require backend integration of knowledge, processes, technology and product communication, Common facilities development, product content generation, documentation and images of the art products for display and promotional activities.

NSIC – ArtMart

It is envisaged to put up an Art mart at NSIC which could house and showcase the traditional products of our country and ensure in preserving our cultural heritage and Art history. This is aimed to open new avenues, new markets resulting in generating new outreach for NSIC. The NSIC Art Mart will be designed to bring together the traditional knowledge systems and novel design practices of art based Enterprises under one roof. The activities planned also include an amalgamation of design expositions, performing arts, stakeholder consultations, artisan-designer round tables and mass spinning of charkhas to highlight Gandhian people-centric economics that are important for environmental and human sustainability.

(Shilpa Bichitra | Special Edition | 2019)