Introduction
Handicrafts is one of the most important sectors in the Indian economy, employing over 6.4 million artisans, with around 64% of the workforce comprising women. The country produces a wide range of products including woodware, art metal wares, handprinted textiles, embroidered goods, zari goods, imitation jewellery, sculptures, pottery, glassware, attars, and agarbattis. India’s handicraft ecosystem is highly diversified, with over 455 craft categories and 318 GI-tagged products, reflecting its rich cultural heritage and regional specialisation. The sector is largely rural-based, with production concentrated in clusters across cities such as Surat, Bareilly, Varanasi, Agra, Hyderabad, Lucknow, Chennai, and Mumbai, offering significant employment opportunities and supporting traditional craftsmanship. Significant advances in digital platforms and e-commerce have enhanced the accessibility of handicraft products, supporting domestic and international demand.
Market size over the years (US$ million)
Source: IMARC, F- Forecasted
The growth of tourism continues to play a crucial role, as rising tourist spending on souvenirs and artisanal products creates new income opportunities for local craftsmen. Additionally, increasing demand for handmade décor products in homes, offices, and hospitality spaces, along with rising gifting culture, is further driving market expansion. The sector remains economically viable due to its low capital requirements, high value addition, and strong export potential, making it an important contributor to India’s creative economy.
India’s handicraft exports (excluding hand-knotted carpets) reached Rs. 33,424.18 crore (US$ 3,783.04 million) in FY26, reflecting strong global demand for Indian handmade products. Key export categories include woodware, art metal wares, embroidered goods, handprinted textiles, and imitation jewellery, with the USA accounting for a significant share of exports. The strong performance highlights increasing international preference for sustainable, handcrafted, and culturally rich products, positioning India as a key global supplier in the handicrafts market.
The handicrafts market in India achieved a size of US$ 4.85 billion in 2025 and is projected to reach US$ 8.29 billion by 2034, with a compound annual growth rate (CAGR) of 6.13% during the period of 2026-2034, according to IMARC Group's forecasts. The market growth in India is driven by significant improvements in the accessibility of handicraft products on various online platforms. Additionally, the surge in travel and tourism within the country is driving a notable increase in the popularity of handicrafts. Tourists are increasingly investing in souvenirs and other crafted items, thereby creating opportunities for local artisans and craftsmen to develop and market their high-quality handicrafts efficiently.
Export Trend
India’s handmade exports (US$ billion)
Source: Export Promotion Council for Handicrafts (EPCH)
Note: ^Data excludes export of carpets, * Provisional Data based on 179 ITC HS Codes for FY26
India remains one of the world’s leading exporters of handicrafts, supported by its diverse product portfolio and strong global demand for artisanal and value-added products. According to provisional EPCH data based on 179 ITC HS Codes, India’s handicraft exports reached Rs. 33,424.18 crore (US$ 3,783.04 million) in FY26, compared to Rs. 33,122.79 crore (US$ 3,916.35 million) in FY25. While exports registered a marginal growth of 0.91% in rupee terms, reflecting currency-related impacts and moderation in export realisations. Miscellaneous handicrafts remained the largest export category, accounting for US$ 1,148.54 million of exports, followed by woodwares (US$ 840.39 million), art metal wares (US$ 505.06 million), embroidered & crocheted goods (US$ 484.92 million) and handprinted textiles & scarves (US$ 443.24 million).
Category-wise performance during FY26 was mixed. Handprinted textiles & scarves recorded the highest growth among major segments, increasing by 16.53% to US$ 443.24 million, while shawls as artwares grew by 45.03% and miscellaneous handicrafts by 3.12%. Agarbatties & attars also registered growth of 1.45%, reflecting sustained demand for lifestyle, home décor and wellness-related products. However, exports of woodwares declined by 16.62%, zari & zari goods by 48.34%, imitation jewellery by 10.91%, embroidered & crocheted goods by 5.72% and art metal wares by 2.62%. Despite variations across product categories, India’s handicraft exports continued to demonstrate resilience, supported by a diversified export basket and sustained international demand for traditional and contemporary handcrafted products.
Export Destinations
Demand for Indian handicraft products continues to remain strong in international markets due to their uniqueness and aesthetic appeal. The major export destinations for Indian handicrafts include the USA, UK, UAE, Germany, the Netherlands, and France, which together account for a significant share of total exports. The USA remained the top importer, accounting for 38.69% of total handicraft exports during FY2024-25, followed by the UK (7.73%) and the UAE (7.68%), highlighting strong demand from North America and key global trading hubs.
Among European markets, Germany (5.37%) and the Netherlands (5.09%) emerged as key destinations, while France accounted for 3.03% of total exports. Other developed markets such as Australia (2.28%), Canada (1.96%), and Italy (1.76%) also contributed to India’s handicraft exports, indicating a well-diversified presence across advanced economies. Regions such as Latin America & Caribbean (2.33%) and other countries (23.51%) further highlight the broad geographic spread of Indian handicraft exports.
Country-wise share of India’s handicraft exports (FY25)
Source: Export Promotion Council for Handicrafts (EPCH)
Note: Based on 179 HS Codes
Government Initiatives
India’s handicrafts sector plays a vital role in supporting rural livelihoods and exports, with the government implementing multiple targeted initiatives to enhance its global competitiveness. As per the Ministry of Textiles, schemes such as the National Handicraft Development Programme (NHDP) focus on cluster development, skill upgradation, design innovation, and marketing support, helping modernise production and improve artisans’ income. Complementary interventions include financial assistance for participation in domestic and international exhibitions, research and development support, and infrastructure strengthening, all aimed at increasing export readiness and resilience of the sector.
In parallel, initiatives such as One District One Product (ODOP) are contributing to the growth of handicrafts exports by promoting district-specific products, including GI-tagged goods, and integrating artisans into broader value chains. The programme has expanded across more than 770 districts, enabling branding, improved packaging, e-commerce access (including GeM-ODOP Bazaar), and enhanced market linkages. State-level ODOP initiatives, particularly in Uttar Pradesh, have supported export growth, employment generation, and increased visibility of traditional crafts through targeted training, financial assistance, and improved market access.
Overall, these policy measures are strengthening India’s handicrafts ecosystem by enhancing production capabilities, promoting exports, preserving traditional skills, and positioning the country as a key global supplier of artisanal and heritage products.
A senior official of the Union Textiles Ministry has stated that an investment of Rs. 1,000 crore (US$ 120 million) is anticipated in the handloom and handicraft sector within the upcoming four to five years.
The Union Budget 2025-26 provides significant support for the handicrafts sector, which represents India’s rich cultural heritage. The duration for export of handicrafts manufactured from duty-free inputs by bona fide exporters will be extended to one year, further extendable by three months.
National Handicraft Development Programme (NHDP)
The programme's goal is to increase the knowledge of the entire handicrafts sector about new design trends and colour forecasts, to increase India’s exports by increasing the new design-led product. The important component of this programme is carrying out surveys, upgrading design and technology, developing human resources, providing insurance and credit facilities to artisans, R&D, infrastructure development and marketing support activities.
Comprehensive Handicrafts Cluster Development Scheme (CHCDS)
CHCDS aims to assist artisans and entrepreneurs in establishing world-class units with modern infrastructure, cutting-edge technology, adequate training and human resource development inputs, market linkages, and product diversification.
Soft interventions such as baseline surveys and activity mapping, skill training, improved tool kits, marketing events, seminars, publicity, design workshops, capacity building, and so on will be provided through CHCDS. Common Facility Centres, Emporiums, Raw Material Banks, Trade Facilitation Centres, Common Production Centres, and Design and Resource Centres will also be granted under the scheme.
In addition to several standard international marketing events, virtual marketing events have been organized to provide artisans with an international marketing platform. Domestic marketing events such as Gandhi Shilp Bazaar, Craft Bazaar, and Exhibitions are organized to provide artisans with a domestic marketing platform.
Government Body
Export Promotion Council for Handicrafts (EPCH)
The Export Promotion Council for Handicrafts (EPCH) is a non-profit apex body established in 1986–87 under the Companies Act to promote, support, and enhance the export of Indian handicrafts. It represents handicraft exporters and works to position India as a reliable global supplier of high-quality handmade products. EPCH provides essential infrastructure, marketing support, and information services, while also offering professional advice to its members and acting as a liaison between exporters and the government. The council plays a key role in organizing major trade fairs in India and abroad, facilitating interaction between Indian artisans and global buyers, and conducting seminars, workshops, and awareness programmes to strengthen the handicrafts sector and expand its global reach.
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