Handicraft exports crash 48% in 2008-09

Recession in the US and several European economies has hit India’s handicraft exports which fell to $1.79 billion in 2008-09, almost half the size of the goods shipped overseas the previous year.

In its efforts to reduce the dependence on western markets, the Export Promotion Council for Handicrafts (EPCH) is working on a gameplan for exploring new markets in Latin America, China, Brazil and the West Asia.

On the back of new exporting destinations, the EPCH hopes to regain the 2007-08 performance of $3.48 billion in the current fiscal. “We will be able to achieve at least $3.4 billion. We are working hard. We have prepared a detailed action plan for exploring new markets in Latin America, China, Brazil and West Asia,” EPCH Executive Director Rakesh Kumar said here today.

Demand for Indian handicrafts, art metalware, woodware, hand-printed textiles and scarves, zari goods and imitation jewellery, saw a massive erosion in the US and prominent European markets.

The US and the EU, together account for over 65 per cent of the Indian handicrafts exports, which provide jobs to one million people.

However, anticipating a revival in demand, Kumar said, “Shops in the US and the EU have started buying again.”

US-based retail chain, Cost Plus World Market, which has been importing Indian handicrafts for the past 49 years, purchases half of its goods from the country.

During 2008-09, it reduced its imports of wooden furniture, seasonal items and art metalware as the demand was severely impacted due to global recession.

“Handicraft imports from India were down 10-12 per cent in 2008-09, compared with the previous fiscal because of the less purchasing power of people in the US,” Cost Plus World Market President and CEO Barry Feld said.

However, he said, items like wooden spice boxes, ceramics, costume jewellery registered a growth of 30 per cent in 2008-09.

On the demand for hand-made items in the current fiscal, Feld said, “Customers are quite cautious... So, it will be more difficult to have success in the current fiscal.”