Handicraft is described as something made entirely by hand, without technological help. This has been done in India for at least 5000 years. Although some stone and bone weapons have been found that predate the oldest handicrafts, these are not considered handicrafts. India's history of arts and crafts is interesting, covering thousands of years and millions of square miles. Indian traditional handicrafts revolve around the needs of commoners, patrons, royalty, religious beliefs, and domestic and foreign trade.

The earliest proven archaeological discoveries of Indian handicrafts date back to the Indus Valley civilization circa 3000 B.C. At this time Indian craftsmen excelled in making jewelry, pottery, beads, terracotta, and weaving. This period represents a significant technical advancement in the field of handicrafts, as evidenced by excavations in Mohenjodaro, Lothal, Kotdigy, Dholaveera, Harappa, and others. Many artifacts have been found that reflect the burgeoning skill of the local craftsmen of the era.

The next significant advancement in handicrafts took place in the Vedic age, around 1500 to 700 BC. The Vedas excelled in weaving, wood crafting, and pottery making, and began using clay, wood, and metal in their handicrafts. Later in the Vedic period, a noteworthy development was the use of iron in weapons on a large scale. This is the period when crafts traditions became enmeshed in the culture and social structure.

Indian handicrafts came close to perfection during the Maurva period, highlighted by the advancement in stone crafts. This is the period of the great transformation of Ashoka to Buddhist reformism after hardcore imperialism, and craftsmen were now indulged in many activities. It is believed that at least 84,000 stupas were created under Ashoka, the most prominent of which can still be seen today at Vaishali, Amaravati, Bharhut, Sanchi, and Mathura. The iron pillars of Vaishali and Delhi are wonderful examples of metallurgy dating from the same period.

A period of assimilation of regional influence in Indian arts and crafts followed the Maurvan. This was a time of great political turmoil, India could not be ruled for long periods by a single dynasty. Invasions by Indo–Bactrians, Shakas, Indo–Greeks, and Kushanas turned the Indian political scene upside down. The handicrafts of this period were strongly influenced by these invasions of central Asians and others, as evidenced by Buddhist sculptures from this period found at Swat Valley, Bamiyan, Taxila, Begram, and other areas. A direct result of Greek influence at this time is the depiction of Buddha with curly hair, draped in flowing clothing. The Central Asian invasions had their greatest influence on the sculpture, leather products, metal works, jewelry, and textiles of the period.

The Gupta age, a period of efficient ruling, political stability, and consistent patronage of arts and crafts, has been called India's classical age. Some highlights of this time are significant advancement in both art and techniques of wood and stone carving, weaving, jewelry making, and sculpture, and includes beautiful murals of Aianta. Major advances were made at this time in art and literature, but science was also coming into its own, including mathematics, astronomy, physiology, and astrology. Sculptures of metal and stone from this period represent high quality standards. The temples of Ellora, cut from rock, represent the highest standard of stone craft in India known at the time.

Development in arts and crafts shifted to the southern peninsula of India during the Medieval period. Trade and commerce based on the handicrafts of local artisans was vigorously supported by the Chola and Vijaynagara empires. This period saw the use of intricate detail carved in temples, and great importance was given to gems and jewelry. This period saw the peak of silk weaving and bronze sculpture, while in northern India Delhi Sultanate allowed wood carving, metal works, jewelry, weaving, and pottery making to flourish. Arts and science reached new heights under the patronage of the Mughal empire, with the emphasis on architecture. Painting was the hallmark under the emperors Jahangir, Shahjahan, and Akbar, while Mughal paintings influenced other regions, such as Pahari, Boondi, Kota, and more. Weaving and metallurgy flourished at this time as well, with metal working reaching several milestones during the medieval period. Evidence exists of battles fought with guns and cannons technologically advanced for the era.

We can see from the archaeological evidence the evolution of arts and crafts among civilizations of the Indus valley from 3000 B.C. to the past few hundred years. The lifestyles of the various peoples inhabiting the area reflect the integral role played by craft traditions. Handicrafts in some cases came to identify groups of people, as the caste system limited use of certain crafts to groups of people. The people confined to a certain caste were responsible for much creativity and innovation in their specific handicrafts because they relied on them for their livelihood. This contributed significantly to the prosperity of handicrafts in India. It also led to the development of new techniques in order to find ways to please the patrons.