Arshia Budhraja

Implementation Gaps and Welfare Effects of Government Interventions in the Indian Handicraft Sector

Started Jan. 30, 2026

Abstract or project description

The Indian handicraft sector employs millions of artisans, many operating in informal settings and relying heavily on intermediaries for credit, inputs, and market access. Over the past two decades, the Government of India has introduced multiple interventions — including cluster development programs, marketing assistance schemes, credit facilitation, skill development initiatives, and digital marketplace integration — to enhance artisan incomes and reduce market inefficiencies.. While multiple schemes aim to enhance market access, provide credit, enable direct-to-consumer platforms, and formalize artisan enterprises, evidence on their actual impact remains limited. Focusing on a specific region and handicraft industry (e.g., handloom weaving, brassware, block printing), the study will evaluate the effectiveness of selected government scheme(s) in achieving their intended objectives. The analysis combines paper reviews with institutional mapping to assess implementation gaps and distributional outcomes.

The project will try to addresses three core questions:

How do implementation challenges affect policy impact? To what extent have government interventions generated measurable benefits relative to their budget allocations and stated objectives? What steps can improve effectiveness of policy implementation?