New Delhi, Feb. 18 Handicraft exports are likely to nearly double to $3.4 billion by 2011-12 from the projected $1.8 billion in 2009-10, according to the Export Promotion Council for Handicrafts (EPCH), the nodal export promotion body for handicrafts under the Textiles Ministry.
This will be due to the demand revival in traditional markets of Europe and the US. Besides, exporters are shifting focus to new markets such as Latin America, Africa and the Caribbean, and Central and South-East Asia.
Handicraft exports had declined by 48.35 per cent in 2008-09 to $1.8 billion due to the global financial crisis, the EPCH Executive Director, Mr Rakesh Kumar, said here on Thursday. He, however, added, “Now, we are on the recovery path and expect exports to touch $3.4 billion by 2011-12.''
Thanks to the demand revival, the decline in US dollar terms was down to just 4.86 per cent during April 2009-January 2010 to $1.25 billion. In rupee terms, there is even a recovery with 2.03 per cent growth at Rs 5015.92 crore during the above period.
Following the global economic slowdown, handicraft exports had declined for 11 consecutive months from October 2008. However, it turned positive in September 2009 recording a 160 per cent growth over the previous year.
“The exports have been increasing with fresh orders from the US and EU. The stores there have been exhausting their stock,'' Mr Kumar said.
New markets
In 2008-09, around 70 per cent of the country's handicraft exports were to the US and European Union. But following a major demand fall in these markets, exporters are trying to focus on new markets where the demand is still strong to offset the losses in the US and EU, EPCH Chairman Mr Raj Kumar Malhotra said.
There is a major demand for Indian handicraft products in Latin America. These new markets are expected to generate business worth Rs 5,000 crore in the next five years, the council said.
Publicity campaign
Noting the economic revival, EPCH is organising a publicity campaign abroad. It will also hold the Asia's biggest gifts and handicrafts fair — Indian Handicrafts and Gifts Fair (IHGF) — on February 20 near Greater Noida. Over 2,100 Indian exhibitors including 900 permanent marts will be showcasing a wide range of products and over 5,000 buyers from across the world are expected to throng the IHGF.
EPCH has put out advertisements at airports, Associations and Chambers of Commerce in India and abroad, Foreign Missions as well as Indian Missions abroad.
The event will focus on eco-friendly products and items made of wood, metal, cane and bamboo, textiles made of natural fibres, wool, silk, jute, coir, stone, leather, terracotta and lacquer.
Buyers from South Africa, Namibia, Tunisia, Botswana, Tajikistan, Belarus, Turkmenistan, Uzbekistan, Kazakhstan, Colombia, Argentina, Chile, Laos, Indonesia, Brunei and Malaysia have been invited.
Source : Business Line