Final Handicraft

8/3/2019 Final Handicraft

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1. Indian Handicrafts - An IntroductionA walk through the time-honored gallery of Indian handicrafts showcases the cultural

brilliance and munificence of the nation. Emblematic of a country that is a melting pot of

diverse communities, customs, tribes, traditions, festivals and languages, the lineage of

Indian handicraft dates back to antiquity and captures a rich blend of functionality with

artistic ingenuity. Infusing prolific designs on timeless substrates like textiles, stone,

metal, papier mache, glass, grass, wood, cane, bamboo, clay, terracotta and ceramics,

they beautifully articulate the artistic mastery and excellence of Indian crafts persons who

have inherited, preserved and honed this ancient skill throughout the ages. Today,

globally extolled for their dynamic combination of form, design and color,

Indian handicrafts enjoy a large export market, especially in places like Saudi Arabia,

U.S.A. Japan, U.K, Germany, Canada, Italy, France, to name a few.

1.1. Popular Indian Handicraft Items

Metal Craft: Metals such as gold, silver, copper, brass and bell metal are shaped to

perfection to create an exquisite wealth of jewellery, figurines, idols, utensils, etc. These

intricately crafted items are special to Bihar, West Bengal, Kashmir, Orissa, Assam,

Tamil Nadu and Kerala.

Metal Ornamentation: Use of techniques such as inlay, overlay, appliqu, etc., gives

birth to the exclusive repertoire of metal ornamentation in India in the form of Bidri a

kind of surface ornamentation relived with silver and gold inlay, and Enamelingan

artwork where surfaces of various metals are subjected to color treatment and etchings.

Pottery & Stone Craft: A distinguishable variety of utilitarian and decorative products

are fabricated by potters and craftsmen of Alwar, Bikaner, Jaipur, Kutch, Saurashtra,

Kangra, Meerut, Hapur, Khujra, etc., under this handicraft category.

Stone Craft & Marble Inlay Work: Stones in different shapes, sizes and colors are

sculpted, inlaid and polished to produce an artistic range of utensils, statues, candle

stands, medicine grinders, lampshades, etc. This craft is extensively practiced in Bihar,


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2. Handicrafts Export Markets In IndiaLabor-intensive in nature, the Indian Handicrafts and Gifts Industry is a major revenuegenerator of the country providing employment opportunities to more than 6 million

craftsmen throughout India. Today it enjoys a strong presence in the world market with a

turnover of USD 1.9 billion. It has also shown a consistent annual growth rate of more

than 15 per cent over a period of 10 years, with a steep rise from a mere 3.6% to a 10%

share in global handicraft exports. Major Indian states that contribute to exportation of

various handicraft items are Andhra Pradesh, Uttar Pradesh, Rajasthan, and Gujarat.

Moreover, popular handcrafted gift items manufactured and marketed from India

includes vases, candle stands, Christmas ornaments, pen stands, brassware, papier mache

gift items, ceramic pots and handmade paper products in matchless variety and designs.

2.1.Country-Wise Export of Indian CraftsMajor buyers of Indian handicrafts are

TABLE:1

Art Metal wares U.S.A., Germany, U.K. & Italy

Wood Wares U.S.A., U.K., Germany & France

Hand Printed & Textiles & Scarves U.S.A., U.K. , Germany & Canada

Embroidered & Crocheted Goods U.S.A., Saudi Arabia, U.K., Germany

Shawls as Art wares Saudi Arabia, U.S.A. Japan & U.K

Zari & Zari goods U.K. U.S.A., Japan & Saudi ArabiaImitation Jewelry U.S.A., U.K., Saudi Arabia & Germany

Miscellaneous Handicrafts U.S.A., Germany, U.K. & France

Source:www.india-exports.com
http://www.india-exports.com/http://www.india-exports.com/http://www.india-exports.com/http://www.india-exports.com/


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2.2.Art Concentration AreasA comprehensive range of handicrafts and gifts products is made all over India. Although it isquite difficult to limit a particular place for a specific craft, the following places are well known

for their unique crafts.

TABLE:2

Art MetalwareMoradabad, Sambhal, Aligarh, Jodhpur, Jaipur, Delhi, Rewari,

Thanjavur, Madras, Mandap, Beedar, Kerala, Jagadhari and Jaselmer

Wooden Artwares

Saharanpur, Nagina, Hoshiarpor, Srinagar, Amritsar, Jaipur, Jodhpur,

Jagdalpur, Bangalore, Mysore, Chennapatna, Madras, Kerala &

Behrampur (WB)

Hand printed Textilesand Scarves

Amroha, Jodhpur, Jaipur, Farrukhabad, Sagru & Sanganer

Embroidered GoodsKutch (Gujarat), Jaisalmer, Baroda, Lucknow, Jodhpur, Agra, Amritsar,

Kullu, Dharmshala / Chamba & Srinagar

Marble & Stone Craft Agra, Madras, Baster and Jodhpur

Terracotta Agra, Madras, Baster, and Jodhpur

Zari & Zari Goods Rajasthan, Madras and Baster

Papier Machine Craft Kashmir and Jaipur

Artistic Leather

Goodslndore, Kolhapur and Shanti Niketan (WB)

Imitation Jewelry Delhi, Moradabad, Sambhal, Jaipur and Kohima (Tribal)

Source:www.india-exports.com
http://www.india-exports.com/http://www.india-exports.com/http://www.india-exports.com/http://www.india-exports.com/


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2.3.COUNTRYWISE EXPORTS DATA OF HANDICRAFTS (EXCLUDING HANDKNOTTED CARPETS) FOR THE YEAR 2010-11

TABLE:3

` in Crores Increase/

Decrease in %

over 2009-10

US $ in

Millions

Increase/

Decrease in %

over 2009-10

S. NO. COUNTRY 2009-

10

2010-

11

2009-

10

2010-

11

1 AUSTRALIA 117.30 146.11 24.56 24.62 31.92 29.66

2 CANADA 248.13 301.54 21.53 52.09 65.88 26.48

3 FRANCE 386.60 468.99 21.31 81.15 102.47 26.27

4 GERMANY 782.57 947.35 21.06 164.27 206.98 26.00

5 ITALY 294.58 361.77 22.81 61.84 79.04 27.82

6 JAPAN 201.65 243.76 20.88 42.33 53.26 25.82

7 NETHERLAND 248.70 305.11 22.68 52.21 66.66 27.68

8 UAE 517.99 633.57 22.31 108.73 138.43 27.31

9 SWITZERLAND 121.26 148.94 22.83 25.46 32.54 27.81

10 U.S.A. 2489.19 3012.45 21.02 522.52 658.18 25.96

11 U.K. 928.06 1123.32 21.04 194.81 245.43 25.98

12 LAC 144.56 181.15 25.31 30.34 39.58 30.45

13 OTHER

COUNTRIES

2238.35 2659.90 18.83 469.86 581.15 23.69

TOTAL 8718.94 10533.96 (+) 20.82 1830.23 2301.52 (+) 25.75

Source: Export Promotion Council for Handicrafts


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3. ANALYSIS OF THE FOREIGN TRADE POLICY 2009- 2014ANNOUNCED ON 27.08.2009 WITH REFERENCE TO

HANDICRAFTS EXPORTS

Foreign Trade Policy 2009-2014 was announced by Honble Minister of Commerce and

Industry on 27th

August, 2009. The major highlight of the FTP is placed at Annexure I. A

special thrust has been given to labour intensive handicrafts sector which is witnessing job losses

in wake of the recession. A brief analysis on the provisions made in the new FTP in particular

with the handicraft sector are placed below:

PROVISIONS SPECIFIC TO HANDICRAFTS SECTOR

1. Three handicrafts clusters provided status of Towns ofExport Excellence (TEE) (NewProvision) Jaipur, Srinagar & Anantnag have been announced as Towns of Export

Excellence for the handicrafts sector. This would enable upgradation of infrastructure and

would provide incentives and focus support.

2. All handicrafts exports to be treated as Special Focus Products and entitled to 5% dutycredit scrips as per S. No. B (vi) (g) of the new Foreign Trade Policy. (New Provision

covering all items of handicrafts however, a limited number of items were earlier

covered under VKGUY) All handicrafts exports would now be treated as Special Focus

Products and entitled to higher incentives as per Sl. No. 3.15.2. Special Focus Products

covered under Table 2 & Table 5 of Appendix 37D, shall be granted duty credit scrip

equivalent to 5% of FOB value of exports for exports made from 27.08.2009 onwards.

3. 52 items added to the New Special Focus Products list.

EPCH had requested the inclusion of 103 items in the New Special Focus Products list

to DGFT and followed it vigorously through Ministry of Textiles. The efforts have

yielded quite good results and 52 items have been notified as New Special Focused

Products.


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These 52 items appears in Table No. 4 & 5 of Appendix 37D of the new Handbook Book

of Procedures Vol-I. They shall be entitled to duty credit scrips of 5%.

The handicraft items not elsewhere specified elsewhereare now also eligible under NewSpecial Focus Products scheme as per entry No. 43 of Table 5 of Appendix 37D of

Handbook of procedures. Earlier only selected items were eligible for the same. This

entry will cover all new and innovative handicrafts items.

Export Promotion Council for Handicrafts shall now certify that the exported product is a

handicrafts product, if any doubt arises.

4. EPCG at zero custom duty for Technological Upgradation.

The recommendation of EPCH to reduce the custom duty on EPCG (Export Promotion

Capital Goods) from 3% to 0% has been accepted.

Now EPCG shall be available at 0% custom duty for handicrafts sector .The export

obligation shall be six times of the custom duty saved to be fulfilled in six years. The

scheme shall be in operation till 31.03.2011.

5. Status holder to get duty credit scrip.

To accelerate exports and encourage technological upgradation, additional Duty Credit

Scrips shall be given to Status Holders @ 1% of the FOB value of past exports. The duty

credit scrips can be used for procurement of capital goods with Actual User condition.

This facility shall also be available for handicrafts. This facility shall be available

upto31.3.2011.

All status holders will get duty credit scrips at the rate of 1% of the value of past exports.The duty credit scrips can be used for procurements of capital goods but subject to actual

user condition.


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6. Support for Green products and products from North East

Focus Product Scheme benefit extended for export of Green Products; and for exports

of some products originating from North East.

7. MDA/MAI

Higher allocation for Market Development Assistance (MDA) and Market Access

Initiative (MAI) schemes is being provided. Special funds have been earmarked for the

handicrafts sector.

GENERAL PROVISIONS MADE IN FTP INCLUDING HANDICRAFT

8. Focus Market Scheme - 26 new markets have been added under Focus Market Scheme.

These include 16 new markets in Latin America and 10 in Asia-Oceania.

The incentive available under Focus Market Scheme (FMS) has been raised from 2.5% to

3%.

9. Market Linked Focus Product Scheme (MLFPS) - Market Linked Focus Product Scheme

(MLFPS) has been greatly expanded by inclusion of products classified under as many as

153 ITC (HS) Codes at 4 digit level. Some major products include; Pharmaceuticals,

Synthetic textile fabrics, value added rubber products, value added plastic goods, textile

made ups, knitted and crocheted fabrics, glass products, certain iron and steel products

and certain articles of aluminium among others. Benefits to these products will be

provided, if exports are made to 13 identified markets (Algeria, Egypt, Kenya, Nigeria,

South Africa, Tanzania, Brazil, Mexico, Ukraine, Vietnam, Cambodia, Australia and

New Zealand).

10. DEPB - To impart stability to the Policy regime, Duty Entitlement Passbook (DEPB)

Scheme is extended beyond 31-12-2009 till 31.12.2010.

DEPB rate shall also include factoring of custom duty component on fuel where fuel is allowed

as a consumable in Standard Input-Output Norms.


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11. Import of Samples - To facilitate duty free import of samples by exporters, number of

samples/pieces has been increased from the existing 15 to 50. Customs clearance of such

samples shall be based on declarations given by the importers with regard to the limit of

value and quantity of samples.

12. EDI - To further EDI initiatives, Export Promotion Councils/Commodity Boards have been

advised to issue RCMC through a web based online system. It is expected that issuance

of RCMC would become EDI enabled before the end of 2009.


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4.Research methodologyProblem Statement:

Estimation of export of Indian handicrafts industry

Research Objectives

To analyze the provisions made in the Foreign Trade Policy in particular with thehandicraft sector.

To know the future trend of the total export of handicrafts. To find out the increase or decrease in the export of Indian Handicraft products from the

last years data.

Research Design

Descriptive Research

Data Collection Plan

The researcher has made use of secondary sources like internet, websites, journals etc to get the

required data.

Statistical tools

Trend analysis is used by the researcher to estimate the future exports of handicrafts.

Data Analysis Plan

Trend analysis

Benefits of the Study

1. It will give estimation about the future export of an Indian Handicraft2. It will analyse the foreign trade policy with regards to Indian Handicrafts


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Limitations of the Study

1. This research study is based on the data of 10 years of export of Indian Handicrafts i.e.short time so proper/accurate estimation in not possible.

2. This research work is confined to only Indian handicrafts. So we cannot generalize theresult to other exports.


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5. DATA ANALYSIS:

5.1.EXPORTS OF HANDICRAFTSThe export of handicrafts (other than hand knotted carpets) was merely Rs. 387.00 crores

during the year of establishment of the Council i.e. 1986-87 rose to level of Rs. 10533.96

Cores in year 2010-11.

(Rs. in Crores)Source: Export Promotion Council for Handicrafts


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5.2.TREND ANALYSISTABLE:4

Year Total export X X^2 XY

2000-01 8490 -5 25 -42450

2001-02 7709 -4 16 -30836

2002-03 9844 -3 9 -29532

2003-04 10465 -2 4 -20930

2004-05 13032 -1 1 -13032

2005-06 14527 0 0 0

2006-07 7288 1 1 7288

2007-08 14012 2 4 28024

2008-09 8183.12 3 9 24549.36

2009-10 8718.94 4 16 34875.76

2010-11 10533.96 5 25 52669.8

total 112803.02 0 110 10626.92

Trend line: y= a. x+ b--------------------------------- 1

Sum of y=a. sum of x+n. b---------------------------2

Sum of(x.y)=a.Sum of (x.x)+b.Sum of x-----------3

Equation (3)

10620.92=a(110) + b(0)

10620.92=a(110) + 0

a=96.55

Similarly, in equation (2)

112803.02=a(0) + 11(b)


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112803.02=0 + 11(b)

b=10254.82

Trend line:

Y=a.x+b

Y=96.55(x) + 10254.82

If suppose x=0

Y =10254.82

If suppose y=0

0=96.55(x) + 10254.82

X = 106.21

Estimated for 2011-12:

Y =96.55(x) + 10254.82

=96.55(6) + 10254.82

=10834.12

Estimated for 2015-16:Y =96.55(x) + 10254.82

=96.55(10) + 10254.82

=11220.32


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5.3.Estimated dataFollowing table shows the estimated sales data of past 10 years, which has been found out using

the trend line only so as to get a clearer trend line and making it clearer to compare between the

actual and the estimated data.

TABLE: 5

Year Estimated sales (Rs. in Crores)

2000-01 9772.07

2001-02 9868.62

2002-03 9965.17

2003-04 10061.72

2004-05 10158.27

2005-06 10254.82

2006-07 10351.37

2007-08 10447.92

2008-09 10544.47

2009-10 10641.02

2010-11 10737.57

2011-12 10834.12

2012-13 10930.67

2013-14 11027.22

2014-15 11123.77

2015-16 11220.32


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TREND LINE

INTERPRETATION:

The intercept in the total export of an Indian Handicraft is 96.55 and slope is 10254.82. The

intercept is the value of the line when X equals zero and b the slope and the slope quantifies the

steepness of the line. It equals the change in Y for each unit change in X. In the export of an

Indian Handicraft the slope is negative which indicates the positive or upward trend in the export

of an Indian Handicraft. It is a good sign from the countrys economic point of view From the

available data the estimated or forecasted export of Indian Handicraft in 2011-12 is

Rs.10834.12crores

0

2000

4000

6000

8000

10000

12000

14000

16000

estimated

actual


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6. Findings & ConclusionFindings

It is seen that the exports are showing a fluctuating trend. The exports of handicrafts aregradually increasing since 1994-95 to 2000-01, from RS.3160 crores to Rs.8490 crores.

After the slight decrease in 2001-02, the exports have again boosted up and have reachedthe peak in the year 2006-07 with exports of Rs.17288 crores.

Because of the recession during the years 2007-08 and 2008-09 the exports have shown adownfall.

After the implementation of Foreign Trade Policy 2009-14, and various export promotingschemes, the exports have shown a upward trend and it very near to the estimates in this

financial year.

So from the fluctuation of exports, trend of Indian handicraft industry is growing. Thus,from the trend analysis the researcher can say that export of handicraft is going to

increase in upcoming years if all other factors remains the same. Though it is seen that

there is vast difference between the estimated values and the actual values of the exports.

Conclusions

The Indian handicraft industry is of major importance with respect to Indian economy as it will

help in generating more employment at lower costs. Moreover, labour is in abundance in India

and hence effective use of manpower can be made. More foreign exchange can be earned thus.

Hence such a industry can be a growth booster to the economy of a developing country like

India. So various steps should be taken by government for upliftment of such industries and thus

developing the economy at large.

Thus in a changing world scenario, crafts products exported to various countries from a part of

life style products in international market. The impact is due to the changing consumer taste and

trends. In view of this, it is high time for Indian Handicraft industry to go into the details of

changing designs, patterns, product development, requisite change in production facilities for a

variety of materials, production techniques, related expertise to achieve a leadership position in

the fast growing competitiveness with other countries.

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