The textiles ministry is considering a plan to develop 20 new handicrafts clusters and six handicraft parks within the next 2-5 years. | |
| This will increase the number of handicraft clusters to 26 within the next five years and boost India's share of global handicraft exports to 4 per cent at $9.1 billion by 2009-10. The world market for handicraft is estimated at $235 billion, while India's export stands only at $2.98 billion. The plan was submitted by the export promotion council of handicrafts (EPCH) to the development commissioner of handicrafts. |
| |
| The ministry has appointed three agencies which will submit their recommendations by December. |
| |
| "We have appointed FDDI (Noida), NICSET (Hyderabad) and IIFM as the three agencies which will prepare a broad plan on how to go about implementing the proposals," said a ministry official. The agencies will do a feasibility study and recommend how much the government will have to invest. |
| |
| EPCH favours diversifying product range and adopting a focussed approach to compete with China, which annually exports handicrafts worth $71 billion. |
| |
| "It is a largely unorganised sector which is its biggest shortcoming. Our exports must go vertical like in China. We have identified products whose production has more commercial viability," said the Executive Director of EPCH, Rakesh Kumar. At present, there are six active clusters in the country which account for 54 per cent of India's total exports. The EPCH has also proposed reforms in labour laws with special provisions for contract labour. |
| |
| "There has to be a shift in the type of products we produce from decorative to utility," said Kumar. The council advocates more private participation to achieve a three-fold increase in investment from the existing Rs 5000 crore a year. |
| |
| Key recommendations in EPCH proposal |
| |
| * Setting up 20 new clusters in areas like Jaipur, Surat, Kashmir, Agra, Bhadohi, Kolkata and Delhi etc. |
| |
| * Setting up 6 handicraft parks on the lines of the Tirupur Apparel Park to give fillip to exports. |
| |
| * Three fold increase in investment from the existing Rs 5000 crore a year. |
| |
| * Targets a three fold increase in exports to $ 9100 million by 2009-10. |
| |
| * Advocates Public-Private Partnership and relaxation in labour laws to allow contractual labour. |
| |
| * Diversification of products for exports from decorative to utility |
| |
|
| |
