India's handicrafts exports, one of the worst sufferers because of the global economic meltdown, dipped by over 50 per cent to $13.53 billion during April-February this fiscal.
According to Export Promotion Council for Handicraft (EPCH) data, handicrafts exports fell by 54.62 per cent from $29.88 billion in the same period last fiscal.
"The decrease in exports of handicrafts is due to slump in demand in major markets of the US and Europe," EPCH said.
The sector, which employs about 7 million artisans, exports over 50 per cent of its products to the US.
Despite the government having announced several measures, including extending interest subsidy up to September this year and giving in-principle approval for including all handicrafts items in the Vishesh Krishi and Gram Udyog Yojna (VKGUY), the situation is yet to improve.
"The stimulus packages are not very attractive for the sector," EPCH Executive Director Rakesh Kumar said.
He said the VKGUY scheme, which offers 5 per cent duty-free scrips to exporters, is helping the handicrafts sector, but all the items are not included in the scheme.
"70 items are included, only one-third of the total, (while) 140 items are pending to be declared by the Directorate General of Foreign Trade," he added.
