‘Rise in tourist arrivals augurs well for handicrafts sector’
India’s handicrafts exports are likely to cross Rs 17, 000 crore mark by the end of FY 2015-16 and Rs 21, 000 crore mark by FY 2020-21, said the Associated Chamber of Commerce and Industry (ASSOCHAM) study titled ‘Infusing vibrancy into Indian handicrafts sector’. The industry body’s Economic Research Bureau concluded this, in its sector-specific projections, on the basis of Compound Annual Growth Rate (CAGR) average of country’s handicrafts exports and world’s merchandise exports, which have grown at the rate of 5.3% and 9% respectively between 2001-02 and 2011-12. With a CAGR of about 5.3% during the 11-year period between 2001-02 and 2011-12, India’s handicrafts exports crossed Rs 12,900 crore mark in FY 2011-12. However, the share of handicrafts exports in India’s total exports declined from a level of about 4% in 2001-02 to just below 1% in 2011-12, noted the study. “Handicrafts industry is highly fragmented in India and the sector has been facing significant challenges owing to lack of design, innovation and technology up-gradation together with insufficient market information on export trends, opportunities and prices, scarcity of raw materials, lack of adequate finance and growing competition from mill and factory made products,” said D S Rawat, Secretary General of ASSOCHAM. “However, increasing inflow of tourists along with lower costs of labour, development of real estate, retail business, increased use of internet and e-commerce augur well for handicrafts sector,” added Rawat, while releasing the findings of the study. In this regard, the industry body suggests exporting community to invest more into research and development, plan long-term strategies with buyers instead of a transaction-oriented approach, saying that would help them in making judicious decisions in terms of pricing policies, product packaging and choice of distribution channels. Promotional methods like building brand image, conducting road shows, craft festivals in target countries, publicity involving marketing tools like innovative and appealing packaging, among others, need to be extensively used by the government and export pPromotion councils. Besides, the government should also focus on creation of niche markets for Indian products, opening showrooms and warehouses in select countries, to improve handicrafts exports from India. Through private partnership, the government should also encourage integrated enterprise development by supporting local centres for skill training, product adaptation, vocational training and entrepreneurship development, suggested the study. It further recommended the Government to offer artisans and craft producers in the country, an access to global markets with complete support right from product development and manufacturing to export marketing. The share of embroidered and crocheted goods which accounts for over 1/4th of India’s handicrafts exports, has come down from 36% in 2008-09 to 26% in 2012-13 due to stagnant performance in major export markets of Germany, USA, UK and UAE, noted the study. According to the States-wise share, Uttar Pradesh (UP) holds maximum number of 325 handicrafts clusters of the total 2,864 such clusters spread across India, followed by Odisha (268), West Bengal (257), Maharashtra (208) and Gujarat (198), among others. Internationally, USA stands as a leading importer of India’s handicrafts exports with a share of about 28%, followed by UAE (11 %), Germany (5%), UK (5%) and Latin American Countries (5 %).
June 29, 2015 | 6:53 pm IST.
to success.