Handicrafts exports jumped 19% to $183 million in May year-on-year, mainly driven by the growing demand from the US and European markets.
In May last fiscal, the exports stood at $154 million, according to the Export Promotion Council for Handicrafts (EPCH) data.
"There is a good demand for our products not only from the US and Europe, but also from emerging markets like Middle East, Latin America and Africa," EPCH Executive Director Rakesh Kumar said.
The US and Europe together account for about 60% of the country's handicrafts shipments.
During April-May 2011-12, the handicrafts exports grew by 16% to $388 million year-on-year.
Among items that registered the maximum growth in exports were wood wares (31.6%), followed by imitation jewellery (about 27%), shawls as art wares (23%), miscellaneous handicrafts (21%) and art metal wares (18%).
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The council expects the exports to touch $2.7 billion in the 2011-12 fiscal.
During April-March 2010-11, handicrafts shipments jumped about 26% to $2.3 billion as compared to the previous fiscal.
Moradabad, Jaipur, Saharanpur, Jodhpur and Narsapur are the major handicraft hubs catering to world markets, employing one million people.