In the current globalized economy, there is a market for every product. Any organization /country can identify the products that provide them a competitive advantage to engage themselves in export of that product. Handicrafts are one such category of items that have a huge potential for export, especially in the Indian Context. This is essentially because handicrafts cover a wide range of products. India is a nation with a strong cultural background - where diverse geographical areas come out with unique handicrafts of their own, which are very difficult to imitate, where technology cannot have a major role, and where the experience of the artisan is highly critical - all these factors provide a crucial competitive advantage. These factors also act as an entry barrier for the competitors. In spite of such competitive advantages, the Indian handicrafts export is just about 2% of the world market, as compared to 17% of China in the world trade. The present paper attempts to study the challenges in this regard and suggests focus areas for action.

1. Bordoloi, Anjan Kumar (2012). 'Tourism Potentiality And Infrastructure Planning With Special Reference To The Dehing-Patkai Region: An Analysis.' Prabandhan: Indian Journal of Management, Volume 5, Number 6, pp. 33-35.
2. Cherunilam Francis (2007). "International Business Texts and Cases." Prentice Hall of India, p.35.
3. Chopra Sunil, Meindl Peter and Kalra D.V. (2007). "Supply Chain Management-Strategy - Planning and Operation.' Third edition, Pearson Prentice Hall, pp. 3-18.
4. Export Promotion Council for Handicrafts, <a href=http://www.epch.in target="_blank">http://www.epch.in</a> accessed on April 24, 2012.
5. <a href=http://www.rbi.org.in/home.aspx target="_blank">http://www.rbi.org.in/home.aspx</a> accessed on April 24, 2012.
6. Ministry of Textiles Annual Report, 2010-11, Chapter 11, <a href=www.texmin.nic.in target="_blank">www.texmin.nic.in</a> accessed on June 30, 2012.
7. Raju T. Kama & Ranganath Santhosh N. (2010). "Marketing of Handicrafts - A Case Study Of Brass Items Manufacturing Units In Srikakulam Dist Of Andhra Pradesh.' Indian Journal of Marketing, Vol.40, Number 9, pp. 48-54.
8. Seifert Dirk (2007). 'Collaborative Planning Forecasting and Replenishment : How to create Supply Chain - Advantage.' Prentice Hall of India, pp. 27-30.
9. Strategic Plan, Department of Commerce-Government of India, <a href=http://commerce.nic.in target="_blank">http://commerce.nic.in</a> accessed on January 14, 2012.