Handicraft exports are on the path of recovery powered by new destinations and demand revival in European markets, and expects shipments to almost double to $3.4 billion by 2011-12 from projected $1.8 billion in 2009-10.
"Handicrafts exports were down 48 per cent in 2008-09 at $1.7 billion due to economic slowdown. Now, we are on the recovery path and expect exports to touch $3.4 billion by 2011-12," Export Promotion Council for Handicrafts (EPCH) Executive Director Rakesh Kumar said here today.
Handicraft exports was severely battered by the global recession registering fall in demand for 11 months in a row starting October 2008.
The exports then turned positive in September 2009, registering a growth of over 160 per cent growth compared to the same period a year ago.
"The exports have been increasing since September 2008, as stores in the US and EU have exhausted their stock. Now, they are giving fresh orders," Kumar added.
The US and the EU together accounted for 70 per cent of India's handicraft exports in 2008-09.
Also, exporters are shifting their focus from the US and European markets to regions like Latin America and the Caribbean, Africa and Asean. This has helped boost demand.
"We are exploring business opportunities in these regions so that we can minimise our risk in case of any crisis," EPCH Chairman Raj Kumar Malhotra said.
The Latin America is a huge market for Indian handcraft products and may generate business worth Rs 5,000 crore in the next five years, the council said.
