Handicrafts exports up 26% in FY11

Handicrafts exports showed an impressive growth of about 26% to $2.3 billion in 2010-11 year-on-year, driven by the growing demand from new markets like Latin America and Africa.

In 2009-10, the exports stood at $1.8 billion, according to the Export Promotion Council for Handicrafts (EPCH) data.

Exporters are hopeful that exports would continue to grow in the current fiscal.

"We expect a growth of about 20% in 2011-12 over the last fiscal mainly on account of increasing demand from emerging markets like Latin America," EPCH Chairman Raj Malhotra said.

He, however said, demand is still slow from traditional markets like the US and Europe.

The US and Europe together account for about 60% of the country's handicrafts shipments.

Among the items that registered the maximum growth in exports were zari and zari goods (52.21%), followed by wood wares (48.17%), embroidered and crocheted goods (43.75%) and imitation jewellery (29.91%).

Moradabad, Jaipur, Saharanpur, Jodhpur and Narsapur are major handicraft hubs catering to world markets, employing 1 million people.

In March, 2011, handicrafts shipments jumped about 18% to $616 million as compared to the same period previous fiscal.

To reduce dependence on western markets like the US and Europe, the exporters started exploring new markets like Latin America, Asia and Africa.

The government has introduced incentives for exporters to diversify and boost their trade with emerging markets like Latin America and Caribbean region.

The growth is in sync with the country's total merchandise exports growth which registered the highest ever growth of 37.5% to $245.9 billion during 2010-11.