Handicraft exports grow 12% in May

Handicraft exports grew about 12% year-on-year to USD 205 million in May this year despite demand slowdown in western markets like Europe.

In May 2011, these exports stood at USD 183 million, according to the data provided by the Export Promotion Council for Handicrafts (EPCH).

"There is an increase in demand from new markets like China, the Middle-East and Latin America," EPCH Executive Director Rakesh Kumar said. The demand, however, is still weak in the US and European markets that are witnessing sluggish economic growth.

The US and Europe together account for over 60% of the country's total handicraft exports. Among the items that registered maximum growth in exports in May were woodwares that saw a rise of 53%, followed by immitation jewellery 46% and shawls as artwares 32%.

In the first two months of 2012-13, these exports grew 11.3% to USD 432 million compared to a year-ago period.

The council expects handicraft exports to touch USD 3.2 billion in the current fiscal compared to USD 2.75 billion in the previous year.

Moradabad, Jaipur, Saharanpur, Jodhpur and Narsapur are the major handicraft hubs catering to world markets, employing one million people.