Handicraft exporters seek industry status, SEZs

Riding on the back of a 25 per cent growth last fiscal, the Export Promotion Council for Handicrafts has asked the Government to accord industry status to the sector and set up a special economic zone to attain Rs 32,700 crore exports by 2009-10.

Riding on the back of a 25 per cent growth last fiscal, the Export Promotion Council for Handicrafts has asked the Government to accord industry status to the sector and set up a special economic zone to attain Rs 32,700 crore exports by 2009-10.

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In a pre-Budget memorandum to Textiles Minister Shankarsinh Vaghela, EPCH said though handicrafts exports have shown an increasing trend over the past decade, India's share in the $106 billion world market has merely been two per cent as against China's 16 per cent.

Handicrafts exports surged 25 per cent to Rs 10,465 crore in 2003-04 from Rs 8,343 crore a year ago, it said.

Noting that Indian handicrafts had managed to build an identity in the US and Europe, EPCH said a concerted effort to create a brand image of Indian products in the global arena was, however, lacking.

The US accounted for 31 per cent and UK 11 per cent of the total handicrafts exports, the memorandum stated, adding additional efforts should be made to tap unexplored markets of Latin America, CIS and African countries.

The council has also sought relaxation in Section 10A and 10B of Income Tax Act to include processing of handicrafts as a manufacturing activity on the pattern of gems and jewellery.