Low Wages, Poor Social Security Leave India’s Craft Workers Vulnerable: Study

Even as the government continues to promote the “Vocal for Local” campaign to boost indigenous products and traditional industries, millions employed in India’s handicrafts and handloom sector continue to struggle with poor earnings, occupational health hazards and the near absence of social security, a new study has revealed.

The study, conducted by the Institute for Human Development (IHD) in collaboration with the Crafts Council of India (CCI), highlighted the difficult working and living conditions faced by workers in the handicrafts and handloom sector, which employs nearly one in every four workers in India’s manufacturing economy.

According to the report, nearly 1.1 crore workers across around 65 lakh establishments were engaged in the sector in 2024. However, the average gross value added (GVA) per worker was estimated at only Rs 270 a day — significantly lower than the minimum wage prescribed by governments.

Together, the five States contributed an estimated annual gross value added of Rs 51,445 crore. However, annual earnings per worker averaged around Rs 84,000, translating into incomes far below minimum wage levels.

“Since most of these establishments are run and operated by a single person, their value added can be taken as their earnings, which is a paltry amount,” said Prof. GC Manna, former director-general of the National Sample Survey Organisation and Central Statistics Office, who led the survey team.

When asked if there was any observation on the health condition of the participants, Prof. Manna said that while the survey did not go deep into analysing health issues at the micro level, almost all the States surveyed reported occupational health hazards.

However, he said it is a known fact that workers face multiple occupational health risks, including respiratory illnesses from prolonged dust exposure, musculoskeletal disorders from repetitive work, poor eyesight due to inadequate lighting, chemical exposure from dyes, and chronic body pain linked to long working hours in cramped spaces.

The study found that Uttar Pradesh reported some of the highest levels of occupational vulnerabilities and health-related concerns among workers, alongside low productivity and economic distress.

Using handloom and handicraft units identified during the Sixth Economic Census conducted by the National Statistical Office, the survey found that most workers continue to function without health insurance, pension support, accident protection, or access to organised occupational healthcare systems.

The study also found that the overwhelming majority of establishments operated from household premises, while only 2.6% employed more than five workers, reflecting the largely informal and proprietary nature of the sector.

However, despite women’s strong participation, Professor Ashok Chatterjee, advisor to CCI and former director of the National Institute of Design, Ahmedabad, said that a substantial proportion of handloom establishments remain outside formal registration systems and government schemes. Very few maintain formal accounts or receive professional training.

The study further pointed to stagnation and decline in production across several States over the past decade. Around 66% of handloom units in Tamil Nadu, 51% in Uttar Pradesh, 50% in Assam, and 48% in West Bengal reported stagnation or decline in production.

Competition from mass-produced products, copying of traditional designs, shortages of skilled workers, and lack of adequate workspace have emerged as key concerns among artisans, the study showed, said Gita Ram (Emeritus), CCI.

The report also found extremely limited access to organised marketing channels. Less than 1% of units in Tamil Nadu, Uttar Pradesh, and West Bengal reported selling products through exhibitions or organised fairs, while almost no use of e-commerce platforms was recorded.

Releasing the report at an event in the national capital, Union Textiles Minister Giriraj Singh acknowledged the challenges faced by artisans and weavers and stressed the need to strengthen both economic and social protection mechanisms for the sector.

He said traditional artisans represent India’s cultural and economic heritage and require greater institutional support, market access, and welfare interventions to ensure sustainable livelihoods.

Shikha Mukherjee from CCI emphasised that occupational health issues among artisans often remain invisible because most workers operate from homes and informal settings where health monitoring systems are absent.

However, she warned that untreated occupational illnesses, combined with low wages and debt vulnerability, could further deepen poverty among craft workers.

The study has called for urgent measures, including expansion of social security coverage, health insurance, occupational safety interventions, skill upgradation, market linkages, and digital access to improve both livelihoods and working conditions in the sector.

Priyanka Tyagi, Chief Executive Officer (CEO) of IHD, added that preserving India’s traditional crafts ecosystem would require not only cultural promotion but also recognition of artisans as workers entitled to dignity, healthcare, and economic security.