Presented by: Birkaran Singh Ramita Papreja Shweta Chadha Jyotika Singh

1

FLOW OF PRESENTATION
Overview ´ Production Centers ´ Domestic Industry ´ Trends in Export ´ Major Export Destinations ´ Major Competitors in the global market ´ Provisions in India·s Foreign Trade Policy ´ Quality Standards ´ Any other relevant Information
´
2

OVERVIEW
´

Definition according to Govt. of India:
«

Handicraft can be defined, which is made by hand; should have some artistic value; they may or may not have functional utility.

´

The Importance of Handicrafts: Cultural & economic
«

India·s rich cultural diversity and heritage provides a unique and huge resource for developing craft products. The Indian Handicraft Industry is showing continuous growth rate of 20% every year. Handicrafts industry is one of the important segment of decentralized sector in India. Major parts of industry operates in rural and semi urban areas throughout the country and has potential Indian and International market with around 67000 exporters to tap the market.
3

«

«

«

26.htm 4 .USD 1830 million Industry·s share in India's exports:. This is one of the major source of income there.213 Crore.india-crafts. undertaken by the National Council for Applied Economic Research the value of handicrafts produced last year were of Rs. « According to the national census of handicrafts.2% The total exports of handicraft items: . http://www. The Handicraft Industry is a $100 billion industry worldwide.1. « « « « « India·s contribution in world market is 1.CONT.51 % Source: indian handicraft facts. This Industry provides huge employment opportunities to artisans that include women and people belonging to backward and weaker society.com/business-reports/indian-handicraftindustry/key-facts.

some part of Indian market are still untapped and market is price sensitive. ´ ´ ´ ´ 5 .´ In spite of having diversified products. quality and delivery for different segments. There is poor promotion for craft products in national market. Products are high priced in big and metro cities. reach of people belonging middle and lower middle class. which are beyond. There is lack of awareness about new traditions and among craftsmen and there is need of technological support and training. Craft producers have to compete on price.

Bamboo products. Marble Sculpture. Imitation jewellery. Hand printed textiles. Jute products. ´ 6 . Shawls. Embroidered and crocheted goods. Wood ware.´ Handicrafts industry comprises diversified products portfolio and there is large variety available in market. Carpets. Bronze Sculpture. Leather Products and other miscellaneous handicrafts. Zari goods. Earthenware. Handicrafts products can be distinguished into following: Metal ware. Paintings.

Source: map of india 7 .

Jodhpur. Agra. Jaipur. Nagina. Kullu and Srinagar. Bangalore. Jagadhari etc. ´ Embroidered item: Manufacturing Units are located in Kutch. Jaipur. Hoshiarpur. Srinagar. Jodhpur. Thanjavur. Aligarh. Lucknow. Baroda. Sambhal. Amritsar.PRODUCTION CENTERS Handicraft industry in India is spread throughout the country with greater concentration in rural and suburban areas of country. Amritsar. Delhi. Metal ware and Bronze sculpture: Major Manufacturing units are located in Moradabad. Jaisalmer. ´ Wooden artware and sculpture: Major Manufacturing units are located in Sharanpur. ´ 8 . Mysore. Behrampur etc. Jodhpur.

´ Paper Crafts: These manufacturing units are located in places of Kashmir and Jaipur. Jaipur and Kohima consist of manufacturing units for these jewelry products. Farrukhabad. and Bastar. Bastar and Jodhpur are famous for these craft products. Agra. ´ Hand printed textiles and scarves: Amroha. Moradabad. Varanasi and Amritsar. Madras. ´ Imitation Jewelery: Parts of Delhi. Marble and soft stones crafts: Agra. Rajasthan. ´ 9 .CONT. Zari and zari products are manufactured at units located at Surat. Terracotta units are located in state of Madhya Pradesh. Bagru and Sanganer consist of manufacturing units. Jaipur. Jodhpur. Sambhal.

The Ministry of Rural Development and the Ministry of Rural Economy are the governing authorities. which drafts and implements policies for the handicraft industries in rural India economy.DOMESTIC INDUSTRY ´ Its role in Rural Indian Economy is very important. ´ ´ 10 . With liberal trade and export policy. the export of the Indian handicrafts industry is on an all time high.

http://business.com/rural-economy/handicraftindustries/ 11 .mapsofindia.´ The main products that are manufactured here are: « « « « « « « « Art metal wares Wood wares Hand printed & textiles & scarves Embroidered & crocheted goods Shawls as art wares Zari and zari goods Imitation jewelry Miscellaneous handicrafts Source: map of india.

2 6 3000 2 00 2000 1 00 1000 1797.708 2308.147 2109.076   12 .88 1830.811 1797.23 1 9 .221 3198.734 1 83.TRENDS IN EXPORTS 4 00 4000 3 00 29 4.4 6 320 .466 00 0 Trends in Exports In USD (million) Source: export promotion council of handicrafts                       4180.

Bamboo products. Germany. Earthen ware. Imitation jewelry. Bronze Sculpture etc. Paintings. Marble Sculpture. Wood wares.DESTINATIONS ´ Handicraft Industry has evolved as one of the major contributors for Export and foreign earnings:Exports of handicrafts including hand knitted carpets during 2009-10 were USD 1830 million Export items. Embroidered and Crocheted goods. Leather products.Art Metal wares. Jute products. Shawls as art wares. India's major export markets are USA. Saudi Arabia. ´ ´ ´ 13 . Hand printed textiles. Canada. Carpets. Zari goods. and Italy etc. UK. France and Japan.

58 201.79 2255.40 111.47 79.99 121.64 (+) 7.86 (+) 2.84 42.75 (+) 1.6 189.54 744.63 29.53 2203.63 (+) 2.33 52.57 294.44 (+) 3. in % over 2008-09 (+)3.27 61.21 108.23 Inc.37 41.70 517.11 24.73 25.62 52. NO 1.93 8183.84 (+) 2.09 81.47 (+) 10.92 105.86 1830.75 863.73 (+) 5.57 59.66 (+) 5. In crores S.35 8718.COUNTRYWISE EXPORTS OF HANDICRAFTS (200910) Rs.17 (+) 0.56 495.80 14 source Export Promotion Council for Handicrafts .23 187.26 2489.13 386.21 (+) 2.30 248. 2 3 4 5 6 7 8 9 10 11 12 13 COUNTRY Australia Canada France Germany Italy Japan nether land UAE Switzerland U.52 194./Dec.30 (+) 8.08 (+) 1.K LAC Other countries total 2008-09 108.35 (+) 7.53 (+) 3.93 (+) 5.73 51.12 484.06 144. in % over 2008-09 (+) 8.19 928.01 (+) 7.81 30.12 (+) 9.28 (+) 8.15 164.11 132.43 (+) 4.01 234.93 (+) 6./Dec.48 270.96 (+) 1.16 (+) 2.53 (+) 9.34 469.65 248.25 361.55 US $ in millions 2008-09 23.60 782.77 478.12 2009-10 117.43 163.21 1797.33 231.88 2009-10 24.60 (+) 5.16 50.S U.56 (+) 6.56 2238.94 Inc.46 522.

IN/MOREDETAILS. HTTP://WWW.EPCH.HTM 15 .SOURCE ± EXPORT PROMOTION COUNCIL FOR HANDICRAFTS.

01 (+) 0. HANDICRAFTS TOTAL 1790.48 45.March) 45.73 (+) 0.56 246.74 (+) 6.14 150.6386 394.31 ARTMETAL WARES WOODWARES HANDPRINTED TEXTILES & SCARAVES EMBROIDERED & CROCHETTED GOODS SHAWLS AS ARTWARES ZARI & ZARI GOODS IMMITATION JEWELLERY MISC.76 (+) 0.27 26.67 1797.htm 16 .86 1877.64 717.61 (+) 18.07 175.12 3116.83 1271.in/moreDetails.http://www.28 1213.91 (+) 12.6 266.96 245.38 (+) 4.27 27.3 8718.98 119.23 (+) 1.80 SOURCE:epch.03 (+) 04.5155 47.33 136.83 51.16 38.75 8183.12 (+) 10.07 (+) 1. 2008-09 ITEMS (April-March) 2009-10 INCREASE/ DECREASE IN % OVER 2008-09 US$ IN MILLIONS 2008-09 2009-10 INCREASE /DECREASE IN % OVER 2008-09 (April.74 184.86 1830.76 266.24 1173.06 393.EXPORT DATA (PRODUCT WISE) ` IN CR.94 (+) 06.38 (+) 0.78 1116.epch.83 245.17 (+) 5.85 131.13 208.39 (+) 5.21 (+) 10.88 654.38 2936.66 38.64 (+) 05.88 (+) 15.55 645.27 622.

prices tend to be comparatively high and many items can be made more cheaply in either China or Vietnam 17 . State-of-the-art equipment and rising productivity allow Chinese producers to deliver large product quantities quickly. but overall are less competitive than China. China ´ China holds a dominant position as an exporter in the global home accessory market. Cambodia. producers from other countries can rarely compete on price and volume.MAJOR COMPETITORS The global handicrafts industry accounts for a market share of 100 billion. and at low prices. Other emerging Asian producers²Indonesia. an amount which grew to $1. ´ pricing is comparable.5 billion within five years. and producers have low minimum order requirements. 2. Thailand. 1. on time. India. ´ China produced an estimated 70% of all home accessory products sold in the United States (2005) ´ Because of China¶s enormous production capacity and low labor costs. ´ Its home accessories industry is enjoying government support and benefiting from investments in infrastructure and transportation. quality and delivery are good. 3. This industry plays a dominant role in the economic development of the rural mass of every country and earns substantial foreign exchange. and Philippines ´ ach offer compelling products and skill sets. Vietnam : ´ in particular is emerging as an alternative to China. and Vietnam. ´ Buyers affirm that while these countries have much to offer. Vietnam exported $300 million in handicrafts to the United States. labor is skilled and hardworking. In 2004.

Peru¶s handicraft exports were estimated at $40 million to markets including the United States (39 %) and Ecuador (11 %) Source: global market assessment for handicrafts.microlinks.. Honduras. ´ In the opinion of market experts. South Africa and Ghana have the highest export capacity and most competitive designs and quality. relatively stable and competitive prices. Honduras. but prices tend to be less competitive. ´ Their success is based on consistent delivery and the ability to sustain sales based on established relationships. thorough packing and labeling. Mexico and Peru are considered the leaders in product quality and richness of design. citing the availability of skilled agents and exporters. a willingness to make changes according to buyer requests. good quality control. 4 5. Guatemala also has excellent designs. and El Salvador are the main exporters of handicrafts.. Columbia.pdf?. In 2005.org/. artisans experienced in exporting to the United States. 18 . USAID. and Guatemala as countries with particularly strong export capacity based on the number of exporters able to handle large order volumes in their own facilities or through subcontracting to smaller producers. Market experts identify Mexico.. Malawi. and Tanzania² ´ offer a number of successful handicraft products on the world market. the ability to deliver products on time. Mexico. Guatemala. www.. Buyers single out Peru as being especially responsive to market demands./Global_Market_Assessment_for_Handicrafts. South Africa. and the capacity to produce items in large quantities. Colombia. Bolivia. Peru. In Latin America. Peru. Several African producers²Ghana. Kenya.. good communication skills. Mozambique.

´ EPCG at zero custom duty for Technological Upgradation. ´ Four handicrafts clusters provided status of ¶Towns of Export Excellence·(TEE). Srinagar Barmer & Anantnag.FOREIGN TRADE POLICY (2010-2011 SUPPLEMENTS TO 2009-2014 FTP) All handicrafts exports at present entitled to 5% duty credit scrip on exports under Focus Product Scheme shall be entitled to additional benefit of 2% of bonus over and above the existing benefit of 5% .Jaipur. ´ Drawback rate reduced from 15% to 11%. ´ 19 .

The duty credit scrips can be used for procurement of capital goods with Actual User condition. Status holder to get duty credit scrip. additional Duty Credit Scrips shall be given to Status Holders @ 1% of the FOB value of past exports. The incentive available under Focus Market Scheme (FMS) has been raised from 2.26 new markets have been added under Focus Market Scheme.5% to 3%. allocation for Market Development Assistance (MDA) and Market Access Initiative (MAI) schemes is being provided. These include 16 new markets in Latin America and 10 in Asia-Oceania . Higher Focus 20 .CONT. Market Scheme .To accelerate exports and encourage technological Up gradation. Special funds have been earmarked for the handicrafts sector.

C HANDICRAFTS ITEMS UNDER FPS Carpets & other textiles floor coverings. DURRIES OF COTTON covered by ITC HS Code 57050021. http://www. Glassware for table kitchen.epch. CARPETS OF COIR JUTE covered by ITC HS Code 57050032.htm. CARPETING. RUGS. DURRIES OF MAN-MADE FIBRES covered by ITC HS Code 57050022. MATS & MATTINGS covered by ITC HS Code 57050049 & 57050090. knotted. iv. woven not tufted/flocked. toilet. OTHR TXTL FLR CVRNGS.FOREIGN TRADE POLICY 2009-14.mht 21 . whether/or not made up (hand knotted category only) Carpets & other textile floor coverings.´ Focus Product Scheme benefit extended for export of ¶Green Products·. CARPETS OF BLENDED JUTE covered by ITC HS Code 57050031. iii. w/n made up (hand-tufted category only) i. OTHR CARPETS OF JUTE covered by ITC HS Code 57050039. v. W/N MADE UP covered by ITC HS Code 57050029. office indoor decoration Handicraft of cast iron Other handicraft of iron and steel Handicrafts / art ware of galvanized iron with brass Art ware / handicraft of brass Art ware / handicraft of copper SOURCE: EPCH. including "kelem" "schumacks". tufted. vi. w/n made up. vii. viii. "karamanie" & similar hand-woven rugs (hand-woven category only) Carpets and other textile floor coverings. ii.in/mda. and for exports of some products originating from North East. DURRIES OF WOOL covered by ITC HS Code 57050023.

´ 22 . Vietnam. Nigeria. Egypt. Ukraine. Customs clearance of such samples shall be based on declarations given by the importers with regard to the limit of value and quantity of samples. Mexico. number of samples/pieces has been increased from the existing 15 to 50. Import of Samples .To facilitate duty free import of samples by exporters. if exports are made to 13 identified markets (Algeria. Tanzania. Cambodia. Kenya. Australia and New Zealand). Brazil.´ Market Linked Focus Product Scheme (MLFPS) ² Market Linked Focus Product Scheme (MLFPS) has been greatly expanded by inclusion of products classified under handicrafts such as Benefits to these products will be provided. South Africa.

in/trade/foreign_trade. The entitlement is broad banded. ´ ´ ´ Source: Foreign trade policy.php 23 . and shall extend also to merchant exporters tied up with supporting manufacturers The Handicraft Export Promotion Council shall be authorized to import trimmings. embellishments and consumables. http://business.gov.HANDICRAFTS ´ New Handicraft SEZs shall be established which would procure products from the cottage sector and do the finishing for exports Duty free import entitlement of trimmings and embellishments shall be 5% of the FOB value of exports during the previous financial year. embellishments and consumables on behalf of those exporters for whom directly importing may not be viable Specific funds would be earmarked under MAI & MDA Schemes for promoting Handicraft exports CVD is exempted on duty free import of trimmings.

experiences. « « 24 . resources and expertise in various regions. Supports the development of crafts through different training initiatives . know-how. Supports the fulfillment of its objectives through the sharing of ideas.QUALITY STANDARDS ´ International Standards « Asean Handicraft Promotion and Development Association (AHPADA) has a mission to preserve and improve the status of craftspeople within and outside the Asia/Pacific region.

thereby marring the image of the country.Domestic Standards « Currently. there are no quality standards applicable to handicrafts in India. To counter this. There could be suppliers who take advantage of the situation and supply low quality products. as it would necessitate personal inspection of the goods. It poses a problem for the buyer as well. quality standards need to be imposed in the following areas: ° Raw material usage ° Process ° Production ° Finish ° Packaging 25 « « « .

PROBLEMS FACED BY EXPORTERS ´ Exporters face non tariff barriers in Western markets. disputes in nomenclature and duty drawback calculation. They also complain of impediments in the form of procedural delays at customs. Lack of ability to produce in large scale and create economies of scale. ´ ´ ´ ´ 26 . There is shortage of skilled craftsmen and labor to match the competition. Inadequate supply chain management and distribution reduces the sector·s commercial viability and economic sustainability.

The Chinese handicraft manufacturers replicate the Indian artifacts and export it to India and the international market.83 billion in 2009-10 and have been trying to achieve a target of $2. The Chinese producers also export their craft products which have been designed and prepared using machines to the international market at lower prices. which has proved detrimental for the Indian exporters. Fibre2fashion News Desk-India 27 . Handicraft exports from India had amounted to US $1. The Exports Promotion Council for Handicrafts (EPCH) has been given the approval to act on the proposal by the Development Commissioner (Handicrafts) in the Textiles Ministry.2 billion in the current fiscal year.Branding Branding of Indian handicrafts to avert duplication by China of Indian handicrafts to avert duplication by China October 16. the Indian handicraft exporters have decided to brand their products. 2010 (India) In order to prevent the replication of Indian handicraft products by the Chinese producers in the global market.

Export Promotion Council for Handicrafts (EPCH) said today.The increase in exports were led by the fashion jewellery and accessories segment. after a two-year lull. 2010." he said."Although the increase has been by and large in all product categories. but India's share in this segment is negligible. which recorded a significant 32 per cent growth in the first three months over the same period last year. India's handicraft exports may increase by more than 12 per cent in the current fiscal to touch the Rs 10." EPCH Chairman R K Malhotra told PTI.The country's handicraft shipments rose by 15."India had exported handicrafts worth Rs 8.000 cr mark Press Trust of India / New Delhi July 11. which includes participation in trade shows and organising buyer-seller meets in upcoming markets among others to shore up India's exports in the world market.The world market for fashion jewellery and accessories is estimated to be around $16 billion.Malhotra said the pace of export growth gained momentum. yet the increase in exports of fashion jewellery and accessories has been remarkable. With demand from the US and Europe on the rise.000 crore this fiscal. it is likely to touch Rs 10. 19:25 IST Buoyed by a surge in demand from the US and Europe.719 crore in the last fiscal.000 crore mark. Malhotra said.45 per cent (in rupee terms) in the first three months of the current fiscal over the corresponding period last fiscal.Malhotra said EPCH has devised a strategy.Handicraft exports may touch Rs 10. from the later part of the last fiscal and the trend is a continuous one so far in the current fiscal as well. 28 .

a esh Kumar. the main market had been U followed by the uropean Union.I r 7. said looking at the trend at the festival. andicrafts export had been the worst affected by the global economic slow per cent in . bout companies had participated in the estival of India showcasing a range of products including Christmas decoration. with an average growth rate of exports to the atin merican country were U dollars .P I I. Traditionally. - The xport romotion Coun il for andicrafts on Tuesda said that the -da ort Council ndicraft Tuesday -day estival of India organised by it in rgentina to showcase Indian handicrafts has generated business and serious en uiries worth over s.and registering an average annual growth of about . it dropped to U Indian dollars . crore. The market. million during . million following the world-wide economic melt down. The festival was organised as part of an exercise to tap newer markets for Indian handicrafts. P . incense sticks.after down.east. The exports had fallen by as much as per cent between . per cent of the exports from India. . C xecutive Director. home decoration and giftware. million in . and the middle. The U topped the list. furniture and fixtures 29 and textiles. a ecutive akesh complete turn around in handicrafts export from India could be expected by pril com lete next. accounting for ermany came second with a share of per cent and United Kingdom the third with per cent.. It increased to U dollars .. rgentina has been increasingly becoming an important per cent per annum in recent years. ast year. costume jewellery and accessories.

in/trade/foreign_trade.microlinks.com/rural-economy/handicraftindustries/ ´ handicraft facts.asp ´ Highlights of the Annual Supplement 2010-11 to the Foreign Trade Policy 2009-14.(updated in June 2010).india-crafts./Global_Market_Assessment_for_Handicrafts.in/Circulars/Circulars/EPCH_Annual_Report_2009-10.(updated in Dec 2010). Updated on July 20 2010. (updated in 2010) ..in/hed. ´ http://www.http://www. http://www.com/industry-article/29/2826/trends-in-handicraftssector1. http://business.org/..com/new_eximpolicy_highlight.exim-policy.htm Handicraft annual report. USAID.pdf?.html ´ Indian handicraft export.fibre2fashion.http://www.REFRENCES India¶s export data.htm ´ global market assessment for handicrafts.epch.mapsofindia.http://www. ´ http://business. www.php ´ 30 .pdf ´ Trends in Handicrafts Sector..gov.com/business-reports/indian-handicraftindustry/key-facts..epch.

Thank you 31 .

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.