Weaving handicrafts is a very significant cottage industry in central and western Bhutan. The handicraft business is divided in to the 3 informal parts like - production, sales and employment. Since 1980, there is a regular effort of colour and design improvement in weaving handicrafts are being done by the Central Government.
Since after 1980, the central government is doing the regular effort to make privatisation of the handicraft industry of Bhutan. Many handicraft centres of the bhutan has been associated with the women associations. The culture department of Bhutan is also organising the efforts to encourage the competition between the craftsmen to innovate new designs.
The complete handicraft scenario of the Bhutan is totally dependent on the following products like - baskets, jewelry, cups and bowls, clay material. The introduction of credit cards have been introduced in the Bhutan and the increasing of the tourism industry is also helpful in making the selling of the handicraft products. The consumption rate is also high on the domestic level.

Problems in handicraft sector of Bhutan -
high labour cost
uncompetitive quality of export
production, sales and furniture export data is insufficient and unreliable
people are still unaware of the concept of the copyright laws
efforts are still to be done to save the creativity of the artists
Bhutan Government is working a concerted effort to increase the role of creative industries like handicrafts. There is also the effort done in 2007-09 on to the promotion of the culture based creative industry to improve the socio-economic development and remove the poverty level of the country.
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