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Socio-Economic Dimensions and Labor Dynamics: Addressing Wage Disparities and the Role of Women in the Craft Economy of Varanasi

Author(s) Vaishali Sharma
Country India
Abstract The handicraft and handloom sector of Varanasi constitutes the region's largest non-farm employer, sustaining an estimated 2 million artisan households and generating an annual cluster turnover of ₹25,500 crore (Ministry of Textiles, 2025). Yet beneath this macroeconomic prominence lies a deeply stratified labor ecosystem defined by structural exploitation, systemic gender invisibility, and chronic wage suppression. This paper provides an empirical evaluation of the socio-economic profile of Varanasi's artisan workforce, combining secondary data analysis with primary field observations conducted across the Adampur (lacquerware), Lallapura (Banarasi silk weaving), and Thatheri Bazar (Gulabi Meenakari) clusters in February 2026.
The findings reveal two critical structural crises. First, the Gaddidar intermediary system captures an estimated 80–85% of final retail value, leaving grassroots artisans with 15–20% of the economic surplus they generate. Second, female artisans — who contribute up to 50% of total production labor, predominantly through painting, lacquer application, and finishing work — earn between ₹150 and ₹250 per day, compared to ₹350–₹500 earned by male artisans performing primary loom or lathe operations. Field observations confirm that women are systematically excluded from institutional safety nets, including the Artisan Pehchan Card, Mudra loans, and e-Shram registration. This study concludes with four evidence-based policy recommendations to democratize credit access, institutionalize fair wage standards, and formalize the invisible female labor force of Varanasi's craft economy.
Keywords Gender Wage Gap · Gaddidar System · Artisan Labor · Informal Economy · ODOP · Women in Handicrafts · Cultural Economics
Field Business Administration
Published In Volume 6, Issue 4, April 2025
Published On 2025-04-01
DOI https://doi.org/10.70528/IJLRP.v6.i4.2324
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