The rural population in In-dia suffers from a great deal of indebtedness and is subject to exploitation in the credit mar-ket due to high interest rates and the lack of convenient access to credit. Rural house-holds need credit for investing in agriculture and smoothen-ing out seasonal fluctuations in earnings. Since cash flows and savings in rural areas for the majority of households are small, rural households typically tend to rely on credit for other consumption needs like education, food, hous-ing, household functions, etc.
Trade financing is the provision of any form of financing that enables a trading activity to take place and which may be made directly to the supplier, to facilitate procurement of items for immediate sale and/or for storage for future activities,or it could be provided to the buyer, to enable him meet contract obligations.
Today, in many developing nations, handcraft production is a major form of employment and in some countries constitutes a significant part of the export economy. Observers of the handcraft sector predict that the escalating number of small businesses turning to handcraft production is unlikely to decline significantly in the future. More specifically, artisans have been identified as the second largest sector of rural employment after agriculture in many regions of the world.Handcraft production crosses all sectors of the modern global economy—from pre-industrial to industrial and post-industrial. Artisan production has thrived because handcrafted products offer distinct advantages: minimal start-up capital, flexible work hours, the ability to work at home, and freedom to manage one’s own business. Unlike many other forms of labor, artisan production can also enable a degree of labor autonomy for those who have limited access to the cash economy