Indian Handi -craf t sector, one of the largest employment generating sectors in rural and semi-rural India, is passing through a very critical phase for the past four years. Instead of registering any noticeable growth, country’s export has come down from Rs 17,288 crore in 2006-07 to the expected export of Rs 10,533 crores for the year 2010-11. Interestingly, in 2006-07, the sector was projected to cross Rs 30,000 crore by 2010, but today it is lagging behind more than 66 percent from its projected target. Though one of the main reasons for the decline was global meltdown in 2008, experts from the Handicraft sector had not imagined that the situation would turn so worse and would take so long to return to its normal stage. The sector, which generates employment to about 70 lakh poor artisans from rural India, is apparently losing its sheen in the craftsInternational market. It is still struggling to come out of the 2008 global meltdown that has virtually reduced its export revenue to half. In 2006-07 when country’s handicraft export was at its peak (Rs 17,288 crore), government had projected the handicraft sector would touch Rs 30,000 crore in next four years. Today forget the projections, the sector has not been able to meet its 2006-07 export records.