Artisan textiles, pottery, woodwork and crafts sell to local customers, tourists, online buyers and export markets. Many artisans join clusters, cooperatives or government schemes for design, marketing and exhibitions. This guide covers selling handicrafts and handloom in India, from GI tags to online sales.
Who this business suits
It suits people with a craft or production skill who can keep quality consistent, manage materials and find steady buyers. Like most small businesses in India, it can start as a proprietorship and register for GST once turnover crosses the threshold.
Getting started in India
- Work out your cost per piece, including materials, labour, packaging and transport, before you set prices.
- Check whether your activity needs pollution control consent and whether any product needs BIS certification.
- Use proper labels for packaged goods, with Legal Metrology details such as net quantity and maximum retail price.
- Find buyers through local shops, exhibitions, online marketplaces and government craft or MSME schemes.
- Get free Udyam (MSME) registration to access MSME benefits.
- Open a current account in your business name and keep business and personal money separate.
Handicrafts and Handloom in India: the numbers and the rules
Small businesses like this in India
In MoSPI’s survey of unincorporated businesses (proprietorships, partnerships and similar firms), this falls under Other manufacturing (jewellery, toys, crafts, incense and more). In 2023-24 India had 12 lakh such establishments employing 25.8 lakh workers, and 86.4% were run without hired workers. Across the wider manufacturing group, the number of establishments grew 6.48% between 2023-24 and 2025.
| Urban | Rural | All India | |
|---|---|---|---|
| Value added per business a year | ₹4,18,170 | ₹97,061 | ₹2,43,938 |
| Value added per worker a year | ₹1,61,400 | ₹54,663 | ₹1,13,537 |
| Pay per hired worker a year | ₹1,56,324 | ₹1,07,847 | ₹1,48,595 |
Running it alone or with staff: businesses with no hired workers added about ₹91,434 a year on average, while those with hired workers added about ₹12,10,512 (all India).
Where these businesses are: the states with the most small manufacturing businesses are West Bengal (16.0%), Uttar Pradesh (11.8%), Maharashtra (7.7%), Gujarat (7.2%), Tamil Nadu (6.9%) of the national total (2023-24).
Value added is what a business produces minus what it spends on materials and other inputs, before paying its workers and owner, so it’s a rough guide to the income a typical small business generates. These figures cover the whole activity, which can be broader than this one business type. Across all small businesses, average fixed assets such as equipment, furniture and vehicles were ₹3,42,242 per establishment in 2025.
Licences and registrations to expect
- Consent to Establish and Consent to Operate from your State Pollution Control Board, unless your activity is in the exempt white category.
- Factory registration under the OSH Code once you have 20 or more workers with power (40 without).
- BIS certification for products covered by mandatory quality control orders, and Legal Metrology registration for packaged goods.
- Registration under your state’s Shops and Establishments Act if you have premises or employees.
- A trade licence from your municipal corporation or council for many shop and service businesses.
- GST registration once turnover crosses ₹40 lakh for goods or ₹20 lakh for services (lower in some special category states), or earlier if you sell goods to other states or through e-commerce marketplaces.
- Professional tax registration in states that levy it.
- Free Udyam (MSME) registration, which helps with loans, government schemes and delayed-payment protection.
Rules differ by state and city. Check with your municipal corporation, state departments and a chartered accountant before you start.
Run a business like this in India? List it free in the India Business Directory, with your hours, deals and GST registration.
Free tools for India: Make a GST invoice · Compare business credit cards
Build a market report for Handicrafts and Handloom in India Pick your state and see market size, earnings, competition and licences, from official data. Free, with a PDF download.
Sources: MoSPI, Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2023-24, full report, Appendix A Tables 4, 29, 33, 35 and 37 (survey period October 2023 to September 2024); MoSPI, Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025, factsheet (survey period January to December 2025, released 24 March 2026). Licensing summary by Advanton, checked November 2026.
Free tools for your business
Use Advanton’s free tools with India selected: make a GST invoice, choose a business structure, work out the cost of hiring and plan your cash with the cash and payroll planner.
Last reviewed November 6, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
