THE HANDICRAFTS INDUSTRY IN INDIA : AN OVERVIEW OF EXPORTS

The Small Scale and Cottage Sector provides employment to over 6 million
artisans (including those in the Carpet trade), which includes a large number of women and people belonging to weaker sections of the society. The sector, in addition to the high potential for employment, is very important economically from the point of view of low capital investment, high ratio of value addition, and a good potential for export and foreign exchange earnings for the country. The industry is highly labour intensive and decentralised, being spread all over the country in rural and urban areas. Many artisans are engaged in certain craftwork on part-time basis. The emergence of handicrafts sector as one of the sources of foreign exchange earnings for the country is evident from the data on international trade in handicrafts from India: (In Rs. Crores)

YEAR

ALL INDIA EXPORTS 20295 27681 32553 43828 53688 65500 82338

HANDICRAFTS*SEE NOTE 550.55 588.56 713.00 1065.00 1412.00 1970.00 2635.90

SHARE IN INDIAS EXPORTS(%) 2.75 2.12 2.19 2.43 2.83 2.83 3.20

1988-89 1989-90 1990-91 1991-92 1992-93 1993-94 1994-95

1995-96 1996-97 1997-98

106465 117525 132522

3020.35 3568.58 4305.82

2.84 3.04 3.41

*Excluding Carpets & Gems & Jewellery

REVIEW OF EXPORTS DURING 1997-98 (APRIL MARCH ) According to the provisional data available, export of handicrafts excluding hand-knotted carpets performed well during April-March97-98. The exports increased from Rs. 3568.58 crores in April-March96-97 to Rs. 4305.82 crores during the same period in 1997-98, recording an increase of 20.66% in rupee terms. In Dollar terms, exports increased from 1005.23 million US $ in AprilMarch96-97 to 1107.47 million US $ in April-March97-98 recording an increase of 10.17%. In nutshell, a rising trend has been observed during the year under review i.e. 1997-98, so for as handicrafts items other than carpet are concerned. The trend indicates the rich market potential for Indias handicrafts abroad. MAJOR BUYERS The major buyers for handicrafts (other than carpets), item wise, are us under: 1. 2. 3. Art Metalwares : USA, Germany, U.K. & Italy Wood wares : USA, U.K., Germany & France Hand printed & Textiles : USA, U.K., Germany & and Scarves Canada

4. Embroidered & Crocheted : USA, Saudi Arabia, U.K., Goods Germany & Canada 5. 6. Shawls as Artwares : Saudi Arabia, USA, Japan & U.K. Zari & Zari goods : U.K., U.S.A, Japan & Saudi Arabia

7. Imitation Jewellery : USA.,U.K., Saudi Arabia & Germany 8. Miscellaneous Handicrafts : USA, Germany, U.K. & France

EXPORT TARGET FOR 1998-99

A target of Rs. 5249 crores, 1350 million US dollars has been fixed for the year 1998-99. Quarterwise breakup is given below:

QUARTER FIRST SECOND THIRD FOURTH TOTAL

Rs. IN CRORES 1155 1417 1575 1102 5249

EXPORT TARGET FOR HANDICRAFTS (OTHER THAN CARPET) FROM 1998-99 TO2001-02:

YEAR Rs. In Year

1998-99 (TARGET) 5249

1999-2000 (PROJ.) 6298

2000-01 (PROJ.) 7873

2001-02 (PROJ.) 10234

Domestic Problems Impeding Exports: India is one of the important suppliers of handicrafts to the world market. Although, exports of handicrafts appear to be sizable, Indias share in world imports is very small. Despite the existence of production base and a large number of craftsmen, India has not been able to encash the existing opportunities. It is generally stated that this is mainly because of the following reasons:

The major craft concentration areas have problems of infrastructure. The delivery schedules cannot be maintained due to transport bottlenecks, power shortage, and lack of proper port facilities. The production and supply have continued to be inadequate due to nonavailability of raw material for some of the important crafts. The quality and finish are not up to the mark due to non-availability of seasoning plants for wood and treatment of material plants for various crafts. Product development is not fully conceived.

The prospects for increasing handicrafts exports from India are bright provided the problems as being given under each category of crafts are acted upon immediately. CRAFT CONCENTRATION AREAS: A wide range of handicrafts, such as, artmetalware/EPNS ware, wood carvings and other wooden artwares , embroidered goods, lace and lace goods, toys, dolls, crafts made of leather, lacquerware, marble crafts are produced all over India. Although it is difficult to attribute a specific place for the particular craft, the following places are listed for their particular crafts: Artmetalware : Rewari, Mhanjavur, Jalesher, Wooden Artwares : Saharanpur, Nagina, Hoshiarpur, Srinagar, Amritsar, Jaipur, Jodhpur, Jagdalpur, Bangalore, Mysore, Chennapatna, Madras/Manpad, Kerala & Behrampur (WB). Handprinted Textiles : Bagru & Sanganer. Embroidered goods : Jodhpur, Agra.Amritsar, Marble & Soft Stone : crafts : Kashmir, Jaipur. Terracota Zari & Zari Goods Imitation Jewellery Kohima(Tribal) Artistic leather goods : : : : Amroha, Jodhpur, Jaipur, Farrukhabad, & Scarves Kutch (Gujarat), Jaisalmer, Baroda, Lucknow, Kullu, Dharamshala/Chamba & Srinagar. Agra, Madras,Baster, Jodhpur. Crafts Papier Mache Rajasthan, Madras, Baster. Surat, Amritsar, Agra & Varanasi Delhi, Moradabad, Sambhal, Jaipur, Indore, Kolhapur, Shanti Niketan (WB). `Moradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi , Madras, Manpad, Beedar, Kerala & Jagadhari,

SELECTED CRAFT POCKETS FOR ACHIEVING EXPORT GOAL AND REQUIRING REMEDIAL ACTION : Although each craft pocket has its particular problems, a few selected craft pockets are identified based on their past performance for immediate remedial

attention to stimulate a quantum jump in exports of handicrafts in the coming years. As such, the following crafts pockets could be provided immediate attention: (i) Moradabad(UP) : For Artmetalwares and imitation Jewellery : For Wooden handicrafts and Wrought iron : For Wooden, Srought Iron and Sea Shell handicrafts. : For Lace and Lace goods.

ii) Saharanpur (UP) handicrafts. iii) (iv) Jodhpur(Raj) Narsapur (A.P.)