HANDLOOM and handicrafts from the North-East have not taken off on a commercial scale inspite of abilities and skills.  This is despite the fact that the sector provides more than 90 per cent of livelihood to around 61 per cent of the total artisan households. A study conducted by the North Eastern Development Finance Corporation Limited (NEDFi), the region contributes 19.18 per cent of the total number of handicraft units in India, 21.71 per cent in terms of artisans and 79.58 per cent in terms of value of production. The study also revealed that handloom and handicraft products from the North-East have excellent brand value. However, lack of finance, adequate infrastructure and marketing facilities have impeded the growth of the handloom and handicraft sector in the region. Although the literacy of the artisan is more than average for the region as a whole. They are not well informed about the rapidly changing fashion world.

People in the North-East are predominantly in the farming sector. For trading and production purposes the rural poor are still dependent on local money lenders whose interest rates are normally very high. This is rather heavy on the borrowers who are often poor, illiterate and do not understand the intricacies involved in formal lending and therefore do not approach banks despite their needs. Despite the vast expansion of the formal credit system in the country, such facilities have not been able to adequately cover the need of small loan requirements. Banks have not been actively involved in such lending as this involves high risks and transaction costs, and too many small borrowers. Faced with such constraints the unreached small borrower can benefit from the small loans that NEDFi provides through intermediaries. This will encourage the practice of informal savings and help in inculcating the habit of borrowing and repaying. The Techno-Economic Development Fund (TEDF, a wing of NEDFi) has conducted a study through the Confederation of Indian Industry (CII) to improve the handloom and handicraft products of the North-East.

Based on the study, the CII has already taken up a project in association with NEDFi to find market from the corporate houses for handloom and handicraft products.

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