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’s handicraft exports increased 21.07% in rupee terms during April-August 2026-27, reaching Rs. 16,910.90 crore (US$ 1.78 billion) compared with Rs. 13,967.79 crore (US$ 1.62 billion) during the corresponding period of 2025-26. The growth was led by strong performance across several product categories. Handprinted textiles and scarves recorded the highest growth, with exports increasing 92.16% to Rs. 2,216.32 crore (US$ 233.09 million), followed by miscellaneous handicrafts, which grew 43.35% to Rs. 4,105.01 crore (US$ 431.73 million). Exports of imitation jewellery increased 23.35% to Rs. 738.04 crore (US$ 77.62 million), while artmetalwares grew 16.77% to Rs. 2,139.67 crore (US$ 225.03 million). Embroidered and crocheted goods and woodwares also recorded growth of 3.73% and 1.34%, respectively, in rupee terms.
Other segments also contributed to the overall increase in handicraft exports during the period. Attars and agarbatties registered growth of 6.48% to Rs. 758.15 crore (US$ 79.74 million), while articles of wicker and bamboo and stone and pottery artware increased 4.19% and 3.37%, respectively. In contrast, exports of shawls as artwares declined 38.83%, followed by Zari and Zari goods at 8.47%, glasswares at 0.48%, and other categories including woodwares and embroidered and crocheted goods recorded declines in US$ terms despite rupee-term growth. In US$ terms, handprinted textiles and scarves recorded the strongest growth of 73.92%, followed by miscellaneous handicrafts at 29.74% and imitation jewellery at 11.64%.
Export Destinations
Demand for Indian handicraft products remains well established across major international markets, with the USA accounting for the largest share of exports at 37.66% in FY2025-26. The UAE was the second-largest destination with an 8.28% share, followed by the UK at 7.10%. Among European markets, Germany accounted for 5.36%, while the Netherlands and France contributed 4.83% and 2.99%, respectively. These markets together represent important destinations for India’s handicraft exports.
Other major markets also contributed to India’s export presence, including Australia (2.05%), Canada (1.88%), Italy (1.77%) and Japan (0.49%). Latin America and the Caribbean (LAC) accounted for 2.43% of total handicraft exports, while other countries collectively contributed 24.99%, indicating a broad geographic distribution of Indian handicraft exports beyond the major identified markets.
Country-wise share of India’s handicraft exports (FY26)
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.
FAQs
The USA leads handicraft exports with a 37.66% share in FY26, followed by the UAE at 8.28% and the UK at 7.10%. Germany, the Netherlands and France are also key markets, reflecting the handicrafts industry's broad global reach.
The handicrafts industry has maintained steady export scale over the years, with handicraft exports ranging between US$ 3.6 billion and US$ 3.8 billion from FY17 to FY26. During April-August FY27 alone, handicraft exports reached Rs. 16,910.90 crore (US$ 1.78 billion), registering 21.07% year-on-year growth.
India's handicraft exports span woodware, art metal wares, handprinted textiles, embroidered goods, zari goods and imitation jewellery. The handicrafts industry is highly diversified, with over 455 craft categories and 318 GI-tagged products contributing to the export basket.
Established in 1986-87, EPCH is the apex body promoting Indian handicrafts exports through infrastructure support, marketing services and trade fair organisation. It acts as a liaison between exporters and the government, strengthening the handicraft export market globally.
Handicraft production clusters are concentrated in cities such as Surat, Bareilly, Varanasi, Agra, Hyderabad, Lucknow, Chennai and Mumbai. These rural-based clusters form the backbone of India's handicrafts industry, supporting traditional craftsmanship and employment.
Handprinted textiles and scarves recorded the highest growth of 92.16% during April-August 2026-27, followed by miscellaneous handicrafts at 43.35%. This strong performance across traditional categories continues to drive Indian handicrafts exports and global demand for culturally rich products.
The National Handicraft Development Programme and Comprehensive Handicrafts Cluster Development Scheme support cluster development, skill upgradation and marketing for the handicrafts industry. An investment of Rs. 1,000 crore (US$ 120 million) is also anticipated in the sector over the next four to five years.
Beyond established markets, Australia, Canada, Italy and Japan present growth opportunities, alongside Latin America and the Caribbean at 2.43% share. Continued diversification is expected to further strengthen the handicraft export market.
The One District One Product initiative has expanded across more than 770 districts, integrating artisans into value chains through branding, e-commerce access and improved market linkages. This cluster-based approach is strengthening Indian handicrafts exports and artisan incomes nationwide.
India's handicrafts industry is projected to grow from US$ 4.85 billion in 2025 to US$ 8.29 billion by 2034, at a CAGR of 6.13%. Continued government support, digital platform growth and rising tourism are expected to further strengthen the handicraft export market outlook.
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