A Blessing In Disguise For Handicraft Exporters Comes as Depreciating Rupee
Date : January 25, 2012
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Rupee depreciation is a "blessing in disguise" for Indian handicrafts exporters as their inputs are sourced domestically, whereas the engineering and jewellery sectors are dependent on costly imports, the EPCH said today.
"If you see the rupee weakening side, we (handicrafts) have net foreign exchange for the country. If you look at gems and jewellery, who first import and after value addition, they re-export. Their imports have become expensive, same is with engineering," Export Promotion Council for Handicrafts (EPCH) Executive Director told reporters.
"But in the case of handicrafts, all items are made by indigenous material -- clay, wood, etc. So Rs 45/dollar or Rs 51/dollar gives us an advantage or power of negotiation with foreign buyers," he said while announcing that the Textiles Ministry will float a Tableaux on Indian Handicrafts for the first time during this year's Republic Day parade.
The near 18 per cent fall in the rupee value against the US dollar between May and December, 2011, has hiked cost of raw materials, thereby resulting in costlier imports. The tableaux designed by the National Centre for Design and Development, a national level design centre, will convey the rich cultural heritage of India to the world, said Development Commissioner (Handicrafts).
The handicrafts industry in India provides livelihood to seven million people across 1,000 clusters and contributes a major chunk of the country's exports. In 2010-11, Indian suppliers had a share of Rs 10,534 crore from exports of Indian handicrafts, while production was worth Rs 17,557 crore.
For the 12th Five-Year Plan (2012-17), the council has set a target of achieving handicrafts exports worth Rs 28,368 crore by 2016-17, translating into an average annual growth rate of 18 per cent. Production is envisaged at reaching Rs 47,280 crore by this time, with 17.3 million people employed in the labour-intensive sector.
The target for the next five years will be achieved by exploring non-traditional markets like Latin America, the Middle East and East European nations, as well as brand promotion. The tableaux will showcase the process of sourcing, retail and export of handicrafts in different approaches. It will also consist of 10 national awardee artisans giving a live demonstration of their craft work, as an appreciation to handicraft manufacturers.
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