Despite being the second largest employer in India, the craft sector has not been receiving the policy support it deserves. Dearth of organised data, unavailability of information and the unorganised nature of the sector prevent voices of change from effectively organising themselves. The rapidly changing economic scenario within India is creating new threats and opportunities for the handloom and handicraft sectors. The main challenges that need to be addressed include:

• 1) Livelihood Challenge : How do we make craft skills remunerative for craft workers?
  
• 2) Business Challenge : How can we make craft businesses economically viable?
  
• 3) Cultural Challenge : How can we preserve, protect and promote the cultural heritage of traditional crafts?

The policy research and advocacy program at AIACA seeks to address these through the following objectives:

• Identify gaps in the policy regime relating to strengthening livelihood security and enhancing incomes of craftworkers.
  
• Engage institutions, scholars and practitioners to contribute to research to address these gaps.
  
• Undertake follow-up interaction through workshops and meetings with policymakers to follow up on implementation of research recommendations.
• Advocate on policy issues relating to crafts-based livelihoods in multiple policy forums.
• Disseminate information on policy issues through an online repository, publication of journals, reports, periodic policy briefs, newsletters etc.

The global paradigm shift towards sustainable development and increasing focus on low-carbon lifestyles offer unprecedented opportunities to the sector. These developments necessitate pro-active policy-support to enable craftworkers to increase their competitiveness and to take advantage of market opportunities created by economic and trade liberalization.

Over the last six years, AIACA has made significant progress towards building itself as a national policy research and advocacy network for the handloom and handicraft sectors. AIACA carved out spaces for policy advocacy through commissioning research on topical issues affecting livelihoods in the crafts sector and holding workshops to discuss and disseminate these reports to policy makers. AIACA regularly interacts with and plays an advisory role in various policy arenas affecting the crafts sector including the Planning Commission and the Ministry of Textiles.