MEIS rates on handicraft products have been raised from five to seven per cent. These include attars, candles, jewelry boxes, wooden frames, statues, handmade paper, handmade lace, shawls, scarves, kohlapuri slippers, bangles, glass art ware, articles of brass, aluminium etc. The move will help handicraft exporters recover some of the input costs involved in production of handicrafts and would also encourage them to have competitive pricing and increase their share in exports.

Indian handicrafts exports declined 6.05 per cent in 2017-18. The textile and handicrafts industry constitutes an important segment of the Indian economy. It is one of the largest employment generators after agriculture. The sector employs about seven million people. The sector is strategic from the point of view of low capital investment, high ratio of value addition, and high potential for export and foreign exchange earnings for the country.

It is estimated that out of the total number of persons employed in handlooms, handicrafts, and sericulture, about 50 per cent are women. There are more women in the household industry than in the registered small scale or cottage units. However, in the organised sector, the percentage of women workers is extremely low, with the exception being garmenting.