The Directorate of Handicrafts and Handloom (D.H.H) began its history in the year 1957 when it was established as a Technical Institute for Training and Production of traditional arts and crafts with 58 nos. of trainees. Over the years, this Institute has evolved into a major centre of learning and training in the Traditional Arts and Crafts of the State. The Directorate of Handicrafts and Handloom as on date is a hub of activity, development and progress showcasing the traditional arts and crafts of Sikkim. The growth and expansion of D.H.H in terms of physical assets, infrastructure and manpower has been impressive, having on date as many as 32 branch training centers throughout the State with a total no. of 388 trainees.

The Directorate's primary objective is not only to preserve and showcase the traditional arts and crafts of Sikkim but to promote and disseminate information regarding the policy orientation of the government in setting the highest standard comparable to the best in the world for arts and crafts, skill development and environment friendly working culture. As a policy initiative there has been tremendous investment in Skill Development Programmes whereby local trainees and artisans are trained in multiple crafts with the objective of developing and acquiring skills which will enable them not only to generate employment but in the long run to acquire self sufficiency and self reliance. The need of the hour is to harness the potential of this extremely vast resource of educated and extremely mobile youth force and channelize them into a productive socio-economic entity that is inherently strong and provides a solid base line for further growth. The challenges for ensuring integration of the various growth factors as also creating a competent civil system in Sikkim. is formidable but nonetheless with the support of the government and implementation of the various initiatives in the right perspective these challenges can be overcome.

In order to bridge the gap in terms of income, education, region and particularly population living in cities/ towns and the remote villages, a development strategy has been planned and evolved taking into consideration the prevailing resources, the ground realities and the people's need and priorities. The long term perspective of the D.H.H is to develop Sikkim into a leading handicraft and handloom destination both in India and globally. In the coming years it is expected that this sector will grow into a formidable industry having multiplier effects that will penetrate the social and economic fabric positively. The state government has acknowledged this sector as one of the thrust areas for creation of skilled human resource and self employment generation.