NagindasKhandwala College

Autonomous

EXPORT MARKETING
SEM V
2018-2019
Type of Product/Service : Handicrafts
1. Name : Zeeshan Salim Khan
STD/ Div. : TY B.Com/ B
Roll No : 192
Seat No :
2. Name : Ajayraj Nadar
STD/ Div. : TY B.Com/ B
Roll No : 211
Seat No :
3. Name : Jay Chheda
Std/ Div : TY B.Com/ B
Roll No : 166
Seat No :

Teacher’s Sign :
Date of Submission :
 Prospects of Export from India
'Export and Prosper' has now become a slogan for the rapid and self-reliant
growth.

Exports are the engine of growth for the development of the nation. Export
marketing helps the stabilization of the prices of agricultural and industrial
products. Human resources are made more productive. Precision and
perfection are the qualitative improvements. Thus there arises the need to
understand the scope of export marketing, significance, problems and
prospects, strategy to be followed promotional measures and suggestions.
Since 1980, the global scenario has changed. Change is inevitable. Closed
economy has given way to the market economy. No more one can think of a
contended life. Everyone needs everything. Controls will result only in
frustration and revolution. The outcome of the above is the New Economic
Policy Liberalization, Privatization and Globalization.

People are not ready to accept whatever is offered. The attitude of the
people gets changed very often. The market has to enlarge to reduce the cost
of production in terms of fixed cost per unit, through lower inventory cost, and
by bringing down raw material cost and other variable cost. The growth of
computerization has brought about on line trade. The market for any product
is wide open and globalization has become the order of the day with new
challenges

Export Marketing: With the impressive industrial development since

independence India's foreign trade has undergone a complete change and is
no longer confined to a few countries trading in few commodities. The number
of commodities exported from the country are now more than three thousand
as against fifty at the time of independence.

The exports from the country have not only gone up but also witnessed an
increasing diversification in recent years. The largest share of India's exports
goes to OPEC countries. Next in the rank are the countries of European
common Market. The major items of India's exports are jute manufactures,
iron ore, raw cotton, cotton manufactures, coffee, spices, leather and leather
manufactures, handicrafts, tobacco etc.
 First five major exporter of the world
For the first time in decades, trade barriers appear to be increasing around the
world.

Now, there is now even rhetoric coming from D.C. about adding tariffs to $200
billion of goods coming from China, and NAFTA renegotiations have long been
on President Trump’s agenda.

The G7 meeting in Canada also gave recent indications on the state of the
existing trade atmosphere. For the first time in recent memory, the meeting of
Western leaders was tense, resulting in name-calling and accusations, giving
the impression that the worst could be yet to come.

Each country is re-sized based on the latest export data from the World Trade
Organization for 2017 and countries with fewer than $20 billion in exports are
excluded altogether.

Here are the 5 countries with the most exports in 2017:

Rank Country Exports (2017)

#1 China $2263B

#2 United States $1547B

#3 Germany $1448B
#4 Japan $698B
#5 Netherlands $652B

China leads the way with $2.26 trillion in exports per year, but the country also
has a sizable population of nearly 1.4 billion.

Germany, which is a massive exporter of automobiles, sends a whopping $1.45

trillion of goods abroad every year despite only having 83 million people.
That’s an astounding $18,000 per person in exports.

The United States is the world’s second largest exporter in terms of absolute
value. However, if you compare it on a per capita basis to a nation like
Germany, it’s clear that the U.S. relies less on exports overall. The country
exported $1.55 trillion in goods in 2017, about $4,800 per person.
 India’s position as an exporter in the world
Exports from India jumped 19.2 percent year-on-year to USD 27.84 billion in
August of 2018, boosted by sales of chemicals (39.9 percent); petroleum
products (31.8 percent); gems and jewellery (24 percent); engineering goods
(21.2 percent); and drugs and pharmaceuticals (18.2 percent). Exports in India
averaged 5306.42 USD Million from 1957 until 2018, reaching an all-time high
of 30541.44 USD Million in March of 2013 and a record low of 59.01 USD
Million in June of 1958.

List of countries by exports

Column1 Column2 Column3 Column4 Column5
Rank Country Exports Date of % of GDP
(millions of $) information
1 China 2,157,000 2017 EST. 19.6
2 United States 1,576,000 2017 EST. 11.9
3 Germany 1,401,000 2017 EST. 46.1
4 Japan 683,300 2017 EST. 16.1
5 South Korea 577,400 2017 EST. 42.2
6 France 551,800 2017 EST. 29.3
7 Netherlands 526,400 2017 EST. 82.4
8 Italy 499,100 2017 EST. 29.8
9 Hong Kong 496,900 2017 EST. 187.4
10 United Kingdom 436,500 2017 EST. 28.3
11 Canada 433,000 2017 EST. 31
12 Mexico 406,500 2017 EST. 38.2
13 Singapore 372,900 2017 EST. 172.1
14 Taiwan 344,600 2017 EST.
15 Russia 336,800 2017 EST. 25.7
16 Switzerland 336,800 2017 EST. 65.8
United Arab
17 314,700 2017 EST. 103.8
Emirates

18 Belgium 309,100 2017 EST. 82.9

19 Spain 301,500 2017 EST. 32.9
20 India 299,300 2017 EST. 13.6
 Top 10 export products from India
HERE ARE THE 10 COMMODITIES MOST EXPORTED FROM INDIA AND THEIR
DOLLAR VALUE:

1. Petroleum products
Shares Value - 61.2 billion dollars
Oil-based products and crude oil giants such as Hindustan Petroleum
Corporation Limited, Bharat Petroleum, Reliance Petroleum, ONGC and et al
have contributed largely to the export sector of India

2. Jewellery
Shares Value - 41.2 billion dollars
The term 'jewellery' here includes gold, gemstones and similar materials. India
consumes around 20 per cent of the global gold production and 75 per cent of
that amount goes into making jewellery. Around 30 per cent of Indian
jewellery gets exported to the United States alone. Other such countries
include Hong Kong, UAE, Singapore and Belgium.

3. Automobile
Shares Value - 14.5 billion dollars
Being one of the leading steel producers in the world, India invests largely on
the automobile sector and its export.

4. Machinery
Shares Value - 13.6 billion dollars
There has been a 10.5 per cent increase in the export of heavy machinery from
India. These include cars, pumps, heavy machines, building construction tools,
agricultural equipment and so on.

5. Bio-chemicals
Shares Value - 12 billion dollars
Manufacturing bio-chemicals is a nationwide business in India. The sector
contributes hugely to the national economy and is an essential part of it.
Research facilities have also supported this sector to a large extent.
6. Pharmaceuticals
Shares Value - 11.7 billion dollars
Being a research-based industry, the pharmaceuticals sector in India has seen a
huge growth over the past few decades. Major Pharma industries such as J. B.
Chemicals and Pharmaceuticals Limited, Suven Life Sciences Limited, Dr.
Reddy's Laboratories, Aurobindo Pharma, Luipin, Ranbaxy, Sun Pharma, Zydus
Cadila, Glowchem and Calyx play a huge role in promoting the sector to the
world market.

7. Cereals
Shares Value - 10.1 billion dollars
India is one the leading exporters of cereals and the second largest producer of
rice. Being an agriculture-driven country, India exports cereals to countries
such as Iran, Saudi Arabia, Indonesia, UAE and Bangladesh.

8. Iron and steel

Shares Value - 9 billion dollars
India is the fourth largest steel producer in the world. Steel tycoons such as
TISCO, IISCO, Bhilai Iron and Steel Centre, and Visweswaraya Iron And Steel
Limited play a major role in the iron and steel export from India.

9. Textile
Shares Value - 9 billion dollars
Textile is India's trump card when it comes to exports. India tops the
chart in jute production and also holds 63 per cent of the global
market share in textiles and garments.

10. Electronics
Shares Value - 9 billion dollars
The export part of this sector thrives silently yet largely. India has the third
largest pool of electronic scientists and engineers and the domestic demand of
electronic goods propels the industry to grow faster and stronger, making
export all the more important.
 10 export services from India
"Service Provider" means a person providing:
(i) Supply of a ‘service’ from India to any other country; (Mode1- Cross border
trade)
(ii) Supply of a ‘service’ from India to service consumer(s) of any other country
1. Professional services
Legal services, Accounting, auditing and bookkeeping services, Taxation
services, Architectural services, Engineering services, etc.

2. Research and development services.

R&D services on natural sciences, R&D services on social sciences and
humanities, Interdisciplinary R&D services.
3. Rental/Leasing services.
Relating to ships, Relating to aircraft, Relating to other transport equipment,
Relating to other machinery and equipment
4.EDUCATION
Primary education services, Secondary education services, Higher education
services, Adult education
5. COMMUNICATION SERVICES
Motion picture and video tape production and distribution service, Motion
picture projection service, Radio and television services, etc.
6.CONSTRUCTION AND RELATED ENGINEERING SERVICES.
General Construction work for building, General Construction work for Civil
Engineering and Installation and assembly work.
7. ENVIRONMENTAL SERVICES.
Sewage services, Refuse disposal services, Sanitation and similar services
8. HEALTH-RELATED AND SOCIAL SERVICES.
Hospital services
9. TOURISM AND TRAVEL-RELATED SERVICES.
A. Hotels and Restaurants (including catering)
B. Travel agencies and tour operators services
10.RECREATIONAL, CULTURAL AND SPORTING SERVICES. (other than
audiovisual services):Entertainment services (including theatre, live bands and
circus services), News agency services, Libraries, archives, museums and other
cultural services, Sporting and other recreational services
 Indian Handicrafts Industry & Exports
Introduction
The handicrafts sector is important for the Indian economy as it is one of the
largest employment generators and accounts for a significant share in the
country’s exports. The state and regional clusters contribute significantly to
handicrafts export. The Indian handicrafts industry is fragmented, with more
than seven million regional artisans and more than 67,000 exporters/export
houses promoting regional art and craftsmanship in the domestic and global
markets.
The present day handicraft tradition of India is a perfect example of
assimilation between the traditional designs and modern techniques. The fast
growing demand for Indian handicraft and gifts products has made this sector
a full-fledged large scale organized industry that is growing day by day.
Today, some of the sectors within the craft industry have even become full-
fledged industries in their own, like - carpet weaving, traditional textile
(Banarsi silk sari, Chikankari etc), gem cutting and polishing, jewelry making,
the world famous diamond cutting and polishing industry, brassware, jute
products, etc. The growth of these industries is due to their ever-increasing
demand and the popularity of Indian crafts in the domestic market and
overseas. Gems and jewelry, carpet making, metalware, leather products, jute
products etc. are some industries.
Indian handicrafts are exported across geographies, with the top 10
destinations being the US, the UK, the UAE, Germany, France, Latin American
countries (LAC), Italy, the Netherlands, Canada and Australia.

Recent Developments
Government of India increased incentive rates under the Merchandise Export
from India scheme (MEIS) to 7 per cent from 5 per cent for handicraft items
which will help exporters to recover the input costs which are involved in the
production of handicrafts, which will also lead in competitive pricing and also
boost exports.
The EXPORT PROMOTION COUNCIL FOR HANDICRAFTS (EPCH) is the apex
government body and operates under the administrative control of the
Ministry of Textiles, Government of India. EPCH has the distinction of being
considered a ‘model council’, a self-sustaining body that self-finances all its
promotional activities.
Handicrafts Export Data
Exports of Handicrafts
22000
21500
21000
20500
RS IN CRORES

20000
19500
19000
18500
18000
17500
2013-2014 2014-2015 2015-2016

Exports of Handicrafts
YEAR RS (IN CRORES)
2013-2014 19103.98

2014-2015 20082.53

2015-2016 21457.91

There has been a consistent annual growth rate of more than 15 per cent over
a 10-year period, from 3.6% to a respectable 10% share in global handicraft
exports. In 2005-2006 the exports of Indian handicrafts has shown an increase
of US$ 298.87 million, i.e. the exports increases by 10.02% over the similar
period during 2004-2005. Though India's share in international handicrafts
market is just about 2 %, the world handicrafts market is estimated to be of
the order of US $235 billion. The industry is expected to triple its export
turnover to Rs. 39,000 crore by 2009-10 that in turn will also create around 20
lakh new job opportunities.
 Major countries where Handicrafts
products are exported

Products exported
The items, which account for a major share of export turnover, include - art
metalware, woodware, hand-printed textiles, hand-knotted and embroidered
textiles, leather goods, stoneware, paintings and sculpture, jewelry and
antique & collectibles.

Major buyers of Indian handicrafts are

Art Metalwares U.S.A., Germany, U.K. & Italy

Wood Wares U.S.A., U.K., Germany & France

Hand Printed & Textiles & Scarves U.S.A., U.K. , Germany & Canada

Embroidered & Crocheted Goods U.S.A., Saudi Arabia, U.K., Germany

Shawls as Artwares Saudi Arabia, U.S.A. Japan & U.K

Zari & Zari goods U.K. U.S.A., Japan & Saudi Arabia

Imitation Jewelry U.S.A., U.K., Saudi Arabia & Germany

Miscellaneous Handicrafts U.S.A., Germany, U.K. & France
 EXPORTS OF "ARTMETALWARE"
IN
CRORES
S. 2014-
COUNTRY 15
2015-16
NO.
1 AUSTRALIA 65.76 60.49
2 CANADA 51.55 37.76
3 FRANCE 78.58 61.13
4 GERMANY 168.84 138.09
5 ITALY 40.58 37.37
6 JAPAN 17.89 20.86
7 NETHERLAND 148.55 97.79
8 UAE 1711.74 1087.73
9 SWITZERLAND 6.58 6.01
10 U.S.A. 1165.99 878.44
11 U.K. 345.08 265.38
12 LAC 88.19 80.38
OTHER
13
COUNTRIES 1707.75 1240.13
TOTAL 5591.83 5597.08

Export of "Artmetalware"
1800
1600
1400
1200
RS IN CRORES

1000
800 2014-2015
600 2015-2016
400
200
0
Observation and Suggestions
• The Handicrafts Sector plays a significant & prominent role in the country’s
economy. It provides employment to a vast segment of craft persons in rural,
and semi urban areas. It generates substantial foreign exchange for the
country while preserving its cultural heritage.

• Handicrafts have great potential, as it holds the key to sustaining not only the
existing set of millions of artisans spread over length, and breadth of the
country, but also for the increasingly large number of new entrants in the
crafts activity.

• Handicrafts are a substantial medium preserve of rich traditional art,

heritage, and culture, traditional skills and talents which are associated with
people’s lifestyle, and history.

• From transforming the traditional Indian arts, and crafts to the customized
version of an overseas art form. Unlike in the past when the industry was
battling to carve a niche in the market, there is a great demand Indian
handicraft today that is because of being nurtured by different government,
and nongovernmental organizations.

• The manufacturing process takes a lot of time, as it is handmade and requires

more time to do a good work. Which leads to mismatch between actual
product demanded, and actual product supplied, the gap is filled by the
machine made products which are very fast in production in nature.

• Use of primitive techniques, high manufacturing cost, and poor quality of

products have been one of the great constraints for the growth of this sector.
The people related to this kind of craftsmanship are so poor that they cannot
afford the basic investments and other overhead charges related to
Handicrafts.

• Poor standard of raw materials, lack of standardized vendor, and suppliers,

inadequate technical know-how for product design , and development, and
carrying forward of old design from ancient times does not match the market
requirements of the present world.

• Improper pricing of finished products, the absence of proper incentives, and

schemes by the Government of India, unorganized investment patterns, and
lack of regular investors are also hindrances for the proper and smooth growth
of this sector.

• Lack of proper marketing channels and poor access to urban markets has
been a problem which needed to be addressed by the government, and the
responsible persons for the wellbeing of this sector which have not seen yet.
Conclusion
Handicraft sector is one of the sectors which can contribute to the success of
Make in India mission. India is one of the important suppliers of handicrafts to
the world market and has shown its importance since years. Handicrafts do not
mean to rely only on the handwork, innovation, and technology can also be
collaborated with the mind frame of the artisans for further enhancement in
this sector. However, there are some setbacks which needed to be addressed
by the Government, Local bodies, and NGO’s more than that it is the
motivation and inspiration for new entries which needed to be taken seriously.
Finally, we can say that this sector has potential to grow, and there are people
willing to be the part of this sector, all they need is the help from the
government, which can effectively contribute to the establishment of business,
and make this sector work as other organized sectors are working.