Chikan embroidery is a rather sensitive concept in so far as it defines Lucknow's identity and its celebrated magnificent past. The mythical beauty of chikankari reflecting an era of graciousness helps to conceal the often sordid conditions in which most artisans live and work. Undoubtedly, the evocative association with the Nawabs of Awadh has become an effective marketing strategy and it is emphasized, however incongruously, even concerning present-day embroidery productions of inferior quality.
It is generally assumed that the system of karkhana, however exploitative it might have been, furthered a deep integration between design, artistry, and craftsmanship, and the superior quality of the embroidery work. However, the karkhanas in Lucknow declined by the late 1920s and early 1930s, at the time of the great economic depression and the ensuing social upheaval. Soon after the karkhanas disappeared, the shopkeepers took over the trade. The male embroiderers of chikan shifted to different roles and professions. A poorly paid, home-based feminine workforce became predominant in the chikan industry. Among the reasons given by male master craftsmen was that there was a loss of appreciation for very fine chikankari and consequently also a loss of prestige associated with fine craftsmanship. The traders in chikan kept the wages down, pushing this craft to subsidiary status.
In the decade following the tragedy of partition in 1947, many prominent Muslim families left Lucknow, and with their departure vanished an important segment of elite consumers. However, there was a corresponding influx of refugees into the city. Some of the refugee relief schemes trained young girls in the art of chikankari as a source of income.
A study conducted by UNICEF and Literacy House, Lucknow in 1979 which revealed that the women and children working in the chikan industry were more cruelly exploited than in any other craft in the unorganized sector. To break out of the stranglehold of middlemen, they needed a viable and sustainable production system with direct access to ready markets. Thus, an organization called Self Employed Women Association (SEWA) Lucknow came into existence in the mid 1980s and brought about dramatic changes in the chikan industry, both in the life of artisans and in the quality of chikan apparel that became available.