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Unveiling the Richness of Handicraft Industry & Learn How to Start Handicraft exports from India.
- Saurabh Pandey
- Jun 25, 2023
- 13 min read
Updated: Aug 19, 2023
Introduction
India, a country known for its vibrant culture and rich artistic traditions, has long been a hub for the production and export of exquisite handicrafts. The handicraft industry in India is a tapestry of creativity, craftsmanship, and cultural heritage that reflects the diverse traditions and skills of its artisans. These timeless creations, crafted with passion and precision, have captivated the world with their beauty and uniqueness. In this blog, we embark on a journey to explore the fascinating world of Indian handicraft exports, shedding light on the historical significance, the incredible range of crafts, the economic impact, the challenges faced, and the path towards sustainable growth. Get ready to immerse yourself in the artistry, creativity, and cultural richness that define Indian handicraft exports. get the detailed knowledge of How to start Handicraft exports from India.
Also get to know the answer of
1) What is Indian Handicraft Market size?
2) How to start Handicraft exports from India?
3) Major Global Partner of Indian Handicraft Industry
4) What are the market trend of Indian Handicraft Industry in 2023-2028?
5) Key Government Initiative and Support to maximize the size of Indian Handicraft Industry?
Table of Content
Historical Significance and Cultural Heritage
India's handicraft exports are deeply rooted in its historical significance and cultural heritage. The country has a legacy of craftsmanship that spans centuries, with each region showcasing its unique art forms and techniques. From the ancient Indus Valley Civilization to the intricate carvings of temples and palaces, India's handicrafts have evolved and flourished through the ages.
The influence of various dynasties and empires can be seen in the diverse range of handicrafts. For instance, the Mughal era left a lasting impact on Indian craftsmanship with its intricate marble inlays, delicate embroidery, and exquisite miniature paintings. The rich symbolism and motifs found in Indian handicrafts often depict religious beliefs, mythology, and nature, offering a glimpse into the country's cultural tapestry.
Handicrafts have played a significant role in preserving and promoting India's cultural heritage. Traditional skills and techniques have been passed down through generations, ensuring the continuity of these art forms. Each craft carries a unique story, reflecting the cultural identity and artistic sensibilities of the communities that practice them.
The craftsmanship of Indian artisans is evident in various art forms. Intricate wood carvings from Gujarat, colorful Madhubani paintings from Bihar, intricate metalwork from Rajasthan, elegant Banarasi silk sarees from Uttar Pradesh, and exquisite pottery from Tamil Nadu are just a few examples of the diverse range of handicrafts found in India.
Economic Impact and Employment Opportunities in Handicraft Exports
The handicraft industry in India has a significant economic impact, contributing to the country's GDP and providing employment opportunities to millions of artisans. This sector plays a crucial role in both rural and urban areas, supporting livelihoods and promoting economic growth.
Employment Generation: Handicraft production is a labor-intensive industry, offering employment opportunities to a vast number of skilled and semi-skilled artisans, particularly in rural areas where alternative job options are limited. Artisan communities, often organized in clusters or cooperatives, form the backbone of this industry and contribute to the socio-economic development of their regions.
Rural Development: Handicrafts provide a means for rural artisans to earn a sustainable income, reducing migration to urban areas in search of employment. By empowering rural communities and preserving traditional crafts, the handicraft industry helps maintain the cultural fabric and prevents the erosion of traditional skills and knowledge.
Women Empowerment: The handicraft sector has been instrumental in empowering women artisans, offering them opportunities for economic independence and social empowerment. Many crafts, such as embroidery, weaving, and pottery, are traditionally practiced by women, allowing them to contribute to household incomes and become financially self-reliant.
Export Revenue: Handicraft exports contribute significantly to India's foreign exchange earnings. The exquisite craftsmanship and unique designs of Indian handicrafts have gained global recognition and demand. The export market provides a platform for artisans to showcase their skills and access international buyers, resulting in increased income and exposure for their craft.
Tourism and Cultural Exchange: Handicrafts are an integral part of India's tourism industry, attracting domestic and international tourists who seek authentic cultural experiences. Handicrafts serve as tangible expressions of India's diverse cultural heritage, creating a connection between artisans, tourists, and buyers from around the world. The promotion of handicrafts through tourism fosters cultural exchange and encourages cross-cultural appreciation.
Value Addition and Ancillary Industries: The handicraft sector supports various ancillary industries, such as raw material suppliers, packaging manufacturers, logistics services, and marketing platforms. These industries benefit from the demand generated by handicraft production, further contributing to the overall economy.
Skill Preservation and Revival: The handicraft industry plays a pivotal role in preserving traditional skills and reviving ancient crafts that may have been on the verge of extinction. By providing market opportunities and recognition for these crafts, artisans are motivated to pass down their knowledge to future generations, ensuring the continuity of these valuable skills.
However, the handicraft industry also faces challenges such as lack of access to finance, limited market reach, and the threat of machine-made imitations. To maximize the economic impact of handicraft exports, it is essential to address these challenges and provide support in terms of infrastructure development, design innovation, access to credit, and market linkages.
Global Demand and Market Trends of indian Handicraft with stats
Global demand for Indian handicrafts has been steadily increasing over the years, as the world recognizes the exquisite craftsmanship and cultural richness of these unique creations. Let's explore the current market trends and the growing international demand for Indian handicrafts, supported by relevant statistics.
Rising International Demand:
India holds a prominent position as one of the largest exporters of handicrafts, particularly excelling in the homemade carpet segment in terms of both volume and value. From April 2022 to February 2023, the total exports of handicrafts amounted to US$ 3 billion. In the fiscal year 2021-22, Indian handicraft exports reached a value of US$ 4.35 billion, exhibiting a substantial 25.7% growth compared to the previous year. Notably, the export of handmade goods, especially carpets, has shown consistent growth over the past three years, with India accounting for approximately 40% of global handmade carpet exports. In FY20, carpet exports from India reached US$ 1.37 billion, while between April 2020 and February 2021, total carpet exports amounted to US$ 1.33 billion. India's major exports in the handicraft sector include handmade woollen products, woodwares, embroidered and crocheted goods, art metal ware, hand-printed textiles and scarves, agarbatties and attars, zari and zari goods, and imitation jewellery. The export figures for various segments from April 2022 to February 2023 were as follows: woodwares at US$ 800.4 million, embroidered and crocheted goods at US$ 369.6 million, art metal wares at US$ 394.22 million, hand-printed textiles and scarves at US$ 296.96 million, imitation jewellery at US$ 149.89 million, and miscellaneous handicrafts at US$ 865.24 million. India's handicraft products have garnered increasing demand in foreign markets due to their uniqueness and aesthetic appeal. The primary export destinations for Indian handicrafts include the USA, the UK, LAC (Latin America and the Caribbean), Australia, Canada, France, Germany, Italy, Japan, the Netherlands, the UAE, and Switzerland. The USA, with a share of 38% of total exports in 2020-21, stands as the top importer of Indian handicrafts. Additionally, India exports carpets to over 70 countries, primarily targeting the USA, Australia, and Europe. The leading carpet importers for India are the USA, Germany, the UK, and Australia, accounting for approximately 57%, 6%, 5%, and 5% of the market share, respectively. The USA demonstrates significant demand for hand-printed textiles, zari woods, embroidered goods, imitation jewellery, and shawls. In 2021-22, carpet exports to the USA exceeded US$ 1.2 billion, and from April 2022 to January 2023, it amounted to US$ 896 million. The UK is another notable customer of Indian handicrafts, particularly art items, crocheted items, handmade handicrafts, wood wares, and imitation jewellery. The country has also been a significant importer of Indian handmade carpets. The UAE holds a prominent position as a major buyer of hand-printed textiles, embroidery goods, and art metalware. Germany, on the other hand, demonstrates a preference for hand-printed textiles, imitation jewellery, embroidery items, and art metals, while also importing carpets worth US$ 116.64 million in 2021-22 and US$ 80.59 million from April 2022 to January 2023. These statistics exemplify the growing global demand for Indian handicrafts and highlight the significance of key export destinations in sustaining the sector's growth.
2. Growing Popularity of Artisanal and Handcrafted Products:
In recent years, there has been a shift in consumer preferences towards sustainable and ethically made products. Indian handicrafts, with their emphasis on traditional techniques, natural materials, and unique designs, align perfectly with this global trend.
The appreciation for artisanal craftsmanship and the desire for one-of-a-kind products have led to a surge in demand for Indian handicrafts in international markets.
3. E-commerce and Digital Platforms:
The advent of e-commerce and digital platforms has provided artisans and exporters with broader market access and opportunities for direct engagement with global customers.
Online marketplaces such as Amazon, Etsy, and eBay have played a significant role in promoting Indian handicrafts and connecting artisans with international buyers.
Social media platforms like Instagram and Pinterest have become powerful marketing tools, enabling artisans to showcase their work and gain global visibility.
4. Diverse Range of Crafts:
The extensive variety of Indian handicrafts, ranging from textiles, pottery, jewelry, woodwork, and metalwork, caters to a wide range of consumer preferences.
Traditional crafts like Banarasi silk sarees, Kashmiri pashmina shawls, Jaipur blue pottery, and Moradabad brassware continue to be in high demand globally.
Contemporary adaptations of traditional crafts, combining modern design sensibilities with traditional techniques, have also gained popularity among international buyers.
5. Ethical and Sustainable Sourcing:
With growing awareness about fair trade and ethical sourcing, there is a strong demand for Indian handicrafts that adhere to sustainable practices.
Buyers are increasingly interested in the story behind the products, seeking transparency in the supply chain and supporting artisans who receive fair wages and work in safe conditions.
6. Collaboration and Design Innovation:
Collaborations between Indian artisans and international designers have resulted in unique and contemporary interpretations of traditional crafts, appealing to a broader customer base.
Design interventions, such as introducing new color palettes, modern patterns, and innovative product applications, have helped expand the market for Indian handicrafts.
7. Cultural Exchanges and Tourism:
The promotion of Indian handicrafts through cultural exchanges, craft fairs, and exhibitions has contributed to their popularity among tourists and international visitors.
Artisanal experiences, such as workshops and craft demonstrations, provide tourists with a deeper understanding and appreciation of Indian handicrafts, often leading to increased sales and exports.
The global demand for Indian handicrafts continues to grow, driven by factors such as the appreciation for artisanal products, the rise of sustainable consumption, and the charm of India's diverse crafts. By leveraging market trends and embracing innovation, Indian artisans and exporters can tap into the immense opportunities available in the global market, ensuring the continued success of this cherished sector.
Challenges in Handicrafts Business in India.
While the Indian handicraft export industry offers tremendous opportunities, it also faces various challenges that need to be addressed to maximize its potential. Let's explore the key challenges and opportunities in the sector.
Challenges:
Competition from Machine-made Products: One of the significant challenges faced by the handicraft industry is competition from mass-produced, machine-made products. These products often have lower production costs and can be manufactured in larger quantities, posing a threat to the uniqueness and exclusivity of handmade crafts.
Lack of Design Innovation: Keeping up with evolving consumer preferences and market trends is crucial for sustained growth. The handicraft sector needs to focus on design innovation, blending traditional craftsmanship with contemporary aesthetics to cater to the changing tastes and preferences of consumers.
Limited Access to Finance: Many artisans and small-scale handicraft businesses struggle to access adequate financial resources, hindering their ability to invest in infrastructure, raw materials, technology, and marketing. Accessible and affordable credit facilities tailored to the needs of artisans can help overcome this challenge.
Inadequate Market Linkages: Limited market linkages and distribution networks pose challenges in reaching a broader customer base. Strengthening collaborations between artisans, exporters, and e-commerce platforms can expand market reach and facilitate direct connections with international buyers.
Infrastructure and Technology Gaps: Improvements in infrastructure, such as transportation, storage facilities, and technology adoption, are crucial to enhance efficiency and reduce costs in the handicraft supply chain. Encouraging the adoption of digital tools and e-commerce platforms can help bridge the technological divide and facilitate smooth business operations.
How to start handicrafts export from India
Starting a handicrafts export business from India requires careful planning and adherence to specific documentation requirements. Here's a guide to the essential documentation and HS codes involved in the process:
1.Business Registration:
Register your business as per the applicable laws in India. It can be a proprietorship, partnership, or a registered company.
2.Goods and Services Tax (GST) Registration:
Obtain a GST registration, which is mandatory for all businesses involved in the export of goods.
3.Import Export Code (IEC):
Apply for an IEC from the Directorate General of Foreign Trade (DGFT). This code is essential for all export-related transactions.
4. Bank Account:
Open a current account with a bank authorized for foreign exchange transactions to facilitate international trade.
5.Product Selection and HS Codes:
Choose the specific handicraft products you intend to export. Each product is classified under a specific Harmonized System (HS) code, which is a standardized international product identification system. Determine the relevant HS codes for your chosen products.
6.Documentation for Export:
Proforma Invoice: Prepare a proforma invoice that includes details such as the buyer's and seller's information, product description, quantity, price, and terms of trade.
Purchase Order: Obtain a purchase order from the buyer confirming their intent to purchase the specified products.
Packing List: Create a packing list that itemizes the contents and quantities of each package being shipped.
Commercial Invoice: Generate a commercial invoice with complete details of the transaction, including the product description, unit price, total value, payment terms, and shipping details.
Bill of Lading/Airway Bill: Arrange for a bill of lading (for sea shipments) or an airway bill (for air shipments) issued by the shipping or airline company, which serves as evidence of the contract of carriage.
Certificate of Origin: Obtain a certificate of origin from the relevant authority to authenticate the country of origin of the goods.
Insurance Certificate: Acquire an insurance certificate to cover the goods during transit.
Export Declaration Forms: Complete the necessary export declaration forms, such as the Shipping Bill or Bill of Export, as required by the customs authorities.
Other Documents: Additional documents may include quality certificates, packaging certificates, and any specific requirements imposed by the importing country.
It's important to note that the exact documentation and procedures may vary depending on the destination country, the nature of the products, and any specific regulations in place. It is recommended to consult with export consultants or relevant authorities to ensure compliance with all documentation and HS code requirements. hope your have got the answer of How to start Handicraft exports from India to know more contact MHW overseas.
Government Initiatives and Support
The Indian government recognizes the importance of the handicraft export industry and has implemented several initiatives and support measures to promote its growth and sustainability. These government efforts play a crucial role in addressing challenges, facilitating market access, and empowering artisans. Let's explore some of the key government initiatives and support mechanisms in the Indian handicraft export sector.
Export Promotion Schemes: The government has introduced various export promotion schemes to provide financial assistance, incentives, and support to exporters. Schemes such as the Merchandise Exports from India Scheme (MEIS) and the Export Promotion Council for Handicraft (EPCH) scheme offer benefits such as duty exemptions, export incentives, and access to credit facilities. These schemes help reduce production costs, enhance competitiveness, and facilitate market expansion.
Financial Assistance Programs: The government provides financial assistance programs specifically tailored to the needs of artisans and handicraft exporters. These programs offer access to credit, working capital, and investment support for infrastructure development, technology adoption, and skill enhancement. Financial institutions such as the Export-Import Bank of India (EXIM Bank) and the National Small Industries Corporation (NSIC) offer loans, guarantees, and export finance to promote exports in the handicraft sector.
Skill Development and Training Initiatives: Skill development plays a crucial role in enhancing the capabilities of artisans and ensuring the production of high-quality handicrafts. The government has initiated several skill development programs, vocational training centers, and artisan training schemes to improve the skills of artisans, upgrade their techniques, and enhance their entrepreneurial abilities. These initiatives help artisans adapt to evolving market demands, improve productivity, and explore new design possibilities.
Market Development Assistance: The government extends support through market development assistance programs, which aim to enhance the market access of Indian handicrafts globally. These programs provide financial assistance for participating in international trade fairs, exhibitions, buyer-seller meets, and export promotion events. Such initiatives enable exporters and artisans to showcase their products, network with potential buyers, and explore new market opportunities.
Handicraft Clusters and Common Facility Centers: The government has established handicraft clusters and common facility centers across the country to promote collaboration, infrastructure development, and access to shared resources. These clusters provide a conducive ecosystem for artisans to work together, share knowledge, access advanced machinery and equipment, and collectively address common challenges. The common facility centers offer amenities such as design studios, raw material banks, testing laboratories, and marketing support.
Market Intelligence and Research: The government facilitates market intelligence and research initiatives to provide exporters and artisans with valuable insights into global market trends, consumer preferences, and demand patterns. Agencies such as the Export Promotion Council for Handicrafts (EPCH) and the Development Commissioner Handicrafts (DCH) conduct market research, disseminate information, and offer guidance on product development and export strategies.
Policy Reforms and Trade Facilitation: The government continually reviews policies, regulations, and trade procedures to enhance the ease of doing business and create a favorable environment for handicraft exports. Measures such as simplifying export documentation, reducing bureaucratic hurdles, and streamlining customs procedures contribute to smoother trade operations and encourage exporters to engage in international markets.
These government initiatives and support mechanisms provide a solid foundation for the growth of the Indian handicraft export industry. They empower artisans, foster innovation, promote market access, and enhance the sector's competitiveness in the global market. The continued collaboration between the government, exporters, industry associations, and artisans is vital for leveraging these initiatives effectively and ensuring the sustainable development of the handicraft export sector.
Conclusion
In conclusion, the Indian handicraft export industry holds immense potential as a driver of economic growth, cultural preservation, and social empowerment. With its rich heritage, diverse crafts, and skilled artisans, India has established itself as a prominent player in the global handicraft market. However, to fully capitalize on this potential, it is essential to address challenges, embrace sustainability, and leverage government initiatives.
By focusing on design innovation, adopting sustainable practices, and promoting fair trade principles, the industry can enhance its competitiveness and meet the evolving demands of conscious consumers worldwide. Collaboration among stakeholders, including artisans, exporters, and government bodies, is crucial for driving growth, improving market linkages, and accessing new opportunities.
The government's support through financial assistance programs, skill development initiatives, market promotion schemes, and policy reforms provides a strong foundation for the sector's growth. With continued efforts and a shared vision, the Indian handicraft export industry can flourish, empower artisans, preserve cultural heritage, and contribute to sustainable development.
By embracing the principles of sustainability, fair trade, and social responsibility, the Indian handicraft export industry can not only thrive economically but also leave a positive impact on society and the environment. Let us work together to showcase the unique beauty and craftsmanship of Indian handicrafts to the world, ensuring their enduring legacy for generations to come.
We hope that this blog provides you with comprehensive insights on initiating handicraft exports from India, including market size and global trends. To explore further details and discover genuine buyers for your products, MHW Overseas offers comprehensive support, including export documentation, buyer research, and more. Consult with us today for expert assistance and guidance in your export journey
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