Indian Handicrafts, traditionally made by rural artisans, radiate a certain charm of their own that has been long admired by the world over for the brilliant mix of colours and exquisite craftsmanship. There has been some decline in the domestic demand for the products with the change in people's tastes caused by globalization. As India opens up her doors to the multinationals during the era of economic reform and liberalized market, it is not only the economies that often meet in the global market sphere, but also the people and cultures, which bring a new dimension to the multi-cultural setting. Today we can see in present day modern world is that there is always a cross-cultural interaction between the ‘local’ and ‘global’ and the much discussed ‘global village’, is now not just a possibility but a reality despite many contradictions. Talking about Indian Handicrafts, which constitutes a significant segment of the decentralized sector of the economy, its export has reached at a commendable height. Indian folk art and crafts which are the integral parts of the Indian culture and tradition are in high demand among the western consumers.