Utility quotient makes handicrafts attractive
THE ECONOMICS TIMES
KOLKATA:24 October '06
The Indian Handicrafts industry is clearly on an upswing. The industry provides direct employment to more than 6m artisans and craftsmen and its annual production is estimated at around Rs 50,000 crore. out of this, nearly 31% is exported every year.
The Indian handicrafts industry is changing rapidly to meet the requirements of overseas buyers. According to Rakesh Kumar, executive director, Exports Promotion council for Handicrafts (EPCH), "There is a growing trend where handicrafts are looked upon as utility products and not just as decorative and gift items."
The handicrafts industry is well spread accross the country. However, over the years, certain clusters have formed for the production of art metalware, wooden artwares, hand-printed textiles, embroidered goods, marble and soft stone crafts and so on.
At present, the bulk of handicraft exports come from a few commodities including embroidered and crocheted goods, art metalware, wooden artwares, hand-printed textiles, zari and zari goods. Says Mr Kumar, 'Broadly, the product categories beingexported from the country have remained more or less the same. However, export of hand-printed textiles and embroidered goods and crocheted goods has been rising faster in comparison to other products. the demand in the overseas market is more for utility items, life style goods and furnishing and household items, while it is comparatively less for antiques and decorative products." the key export destinations for these goods are mostly the developed countries, including the US, Germany, the UK, the Netherlands, France, Canada, Japan, Italy and Australia.
The enthusiasm among foreign buers can be gauged by the number of visitors to the IHGF held every year. This year too, the fair attracted buyers of a diversified profile. "We continously make efforts to attract buyers form countries that have participated before. That's why our focus is on inviting more and more buyers from Latin America, Central Asia, Middle East and Africa," adds Mr Kumar.
However, the Indian handicrafts industry faces tremendous competition from other developing countries including China, Taiwan, Korea, Phillippines, Indonasia and Thailand, among others. China, for instance, produces machine-based products that are produced on a much larger scale. India's handicrafts industry on the other hand, is based in the rural and cottage sector in the interiors of the country. "India, however, has its own strengths of designs, skills and raw material based, which is unique and specific to the country," says Mr Kumar.
The future looks bright for the industry. The world market for handicrafts is estimated at around $235bn and is said to be growing at 5% per annum. At present, India's share in the world market is less than 2%, but its exports have been growing consistently by more than 10% annualy over the last decade. "Once certain bottlenecks such as infrastructure support to the industry is dealt with, the industry is bound to grow by leaps and bounds," adds Mr kumar.
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