The handicraft sector plays a vital role in income and employment generation and has also been recognized worldwide as a tool for poverty reduction. It is a means of preserving and promoting cultural and artistic traditions, such as various techniques and skills of traditional crafts are transmitted from generation to generation. For many countries, the significant unique cultural heritage is retained in their handicrafts. Although, the importance of handicraft industry has been understood long before, this sector has undergone several challenges such as industrialization and globalization consequently; the artisans were incapable to compete with well-organized industrial unit and had to sell their products at lower prices. Industrialization changed the lifestyle and customer’s needs, and as a result, handicraft products lose the market slowly. Consumers of handicraft products decreases as industrial products become more sophisticated, which forced the artisans to abandon their business and move to the cities for earning income.