Government plans to launch programs to help boost India’s handicraft exports to emerging markets

Neha Dewan | @TheDollarBiz

Santosh Kumar Gangwar, Union Minister of State for Textiles, has said that the handicrafts sector needs to focus on new markets such as CIS countries and China to boost exports and generate employment in the country. “To increase the export and to surpass the target, we need to focus on new and emerging markets such as China, CIS and Japan. The Ministry will support artisan-led programmes in this direction,” the minister said yesterday during the inauguration of the 38th edition of IHGF-Delhi Fair Autumn Oct 2014 at the India Expo Centre & Mart, Greater Noida. The minister also hoped that the handicrafts sector will get a boost due to the “Make in India” campaign recently launched by the government. He stated that the handicrafts sector plays a key role in India’s economic growth and provides employment for over seven million artisans and craftsmen across the country. “Hence support to the handicrafts exporting community for the promotion of this sector is important for the government,” said Gangwar.

According to government estimates, India exported handicrafts worth Rs.23,504.42 crore (about $3.8 billion) in FY 2013-14. According to Rakesh Kumar, Executive Director, Export Promotion Council for Handicrafts (EPCH), Indian handicrafts exports have increased 38.22% in Rupee terms and 24.25% in USD terms in FY 2013-14 over the previous year. In line with the average growth of 15% annual growth rate in the last decade, it is expected that handicrafts exports will increase to around $4.4 billion in FY2014-15. Organised by EPCH, IHGF Delhi fair is considered as an important marketing medium for the Indian handicrafts export community to boost exports. In this year’s IHGF autumn fair, over 2,700 exhibitors from all over the country displayed their products from various categories such as houseware, festive décor, fashion jewellery, leather articles, furniture, carpets, toys, and garden accessories. More than 4,000 buyers from countries like USA, UK, Japan, France, Italy, Canada, China and Australia attended the fair.

Some articles on display at the fair 

Buyers appeared pleased with the products showcased at the event, and some buyers said the products were competitively priced and modern in design. “It is far bigger in scale this season. We will be placing orders for furniture items this week. The designs are in tune with international choices – they are lighter in look and feel and are very contemporary. The prices are quite attractive as well,” Jake Moram, Director of UK-based Woodstock Interiors told The Dollar Business.

Fashion show at IHGF Delhi Fair Autumn 2014

However some exhibitors are waiting for business to improve. Neha Ohri, MD of Nidhi Exports, an exporter of metal handicrafts, told The Dollar Business, “As of now, the response has been very slow. Maybe different days for different categories could help in getting more traffic for exhibitors here.” At present, USA is the largest market for Indian handicrafts exports, accounting for around 26.3% of the country’s total outbound shipments.

Buyers from several countries including those from North America and LAC are at the fair this year

This article was published on October 15, 2014.