Handicrafts constitute an important segment of the decentralized/unorganized sector of our economy. Originally, started as a part time activity in rural areas, it has now transformed into flourishing economic activity due to significant market demand over the years. Handicrafts have big potential as they hold the key for sustaining not only the existing set of millions of artisans spread over length and breadth of the country, but also to increasingly large number of new entrants in the crafts activity. Presently, handicrafts are contributing substantially in employment generation, and export.The sector, which is highly dispersed and unorganized, offers tremendous opportunities for sustainable employment, particularly in the rural areas. However, they lack access to the much-needed capital as well as suffer from absence of any governmental support for their welfare and well being.