In order to support the self-sufficient local economy and check the harmful impact of urbanization, it is necessary to provide villagers with the opportunity to make cash income while remaining as farmers on the land. As the agriculture season is limited to 4 to 5 months in a year, the production of crafts offers tremendous potential in this regard. Local artisans not only meet the needs of fellow villagers but are able to export their crafts to the markets abroad as well as sell them to tourists locally.

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LEDeG has been working on handicraft development program since its establishment. Traditionally, handicrafts and agriculture has been the mainstay of the Ladakhi economy. Though modern development disrupted agriculture and Ladakhi culture, handicraft sector improved on many fronts and provided local people with extra cash income.

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​The handicraft sector is a home-based industry, which requires minimum expenditure and infrastructure to set up. It uses existing skills and locally available materials. Most importantly, the income generated through craft sale does not disturb the cultural and social balance of the home or the community.