Introduction
Handicrafts is one of the most important sectors in the Indian economy employing more than seven million people. The country produces woodware, art metal wares, handprinted textiles, embroidered goods, zari goods, imitation jewellery, sculptures, pottery, glassware, attars, agarbattis, etc. The handicraft industry in India is dominated by female artisans with over 56% of the total artisans. The country has 744 handicraft clusters employing nearly 212,000 artisans and offering over 35,000 products. Surat, Bareilly, Varanasi, Agra, Hyderabad, Lucknow, Chennai, and Mumbai are among the major clusters. Most of the manufacturing units are in rural and small towns, and there is enormous market potential in all Indian cities and abroad. Significant advances in the availability of handicraft products on various online portals are bolstering market growth in India.
Handicrafts are becoming increasingly popular as the country's travel and tourism industry grows. Tourists spend significant money on souvenirs and other craft items, expanding the opportunity for local artisans and craftspeople to produce and sell efficient handicrafts. Furthermore, rising demand for handmade décor accessories in homes, offices, and restaurants and rising demand from the gifting industry are propelling the market growth. The sector is economically viable with low capital investment, high-value addition ratio and high export potential.
The handicrafts market in India achieved a size of US$ 4.56 billion in 2024 and is projected to reach US$ 8.19 billion by 2033, with a compound annual growth rate (CAGR) of 6.39% during the period of 2025-2033, 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 is one of the largest handicraft-exporting countries and a clear leader in the homemade carpet segment both in terms of volume and value. According to provisional EPCH data based on 179 ITC HS Codes, India’s handicraft exports were valued at US$ 3.89 billion in FY25, while in FY26 (April-June 2025), total handicraft exports amounted to US$ 903.11 million.
In FY23, the total exports of handicrafts stood at Rs. 30,019 crore (US$ 3.60 billion). In FY22, the total exports of Indian handicrafts were valued at US$ 4.35 billion, a 25.7% increase from the previous year. Over the past three years, the export of handmade goods, especially carpets, has grown steadily. India accounts for roughly 40% of global exports of handmade carpets. India’s carpet export in FY23 stood at US$ 1.36 billion,
while in FY22, it reached US$ 1.79 billion. Carpet exports from India totalled US$ 1.37 billion in FY20. Major goods exported by India are handmade woollen, woodwares, embroidered & crocheted goods, art metal ware, hand-printed textiles & scarves, agarbatties & attars, zari & zari goods, and imitation jewellery. Provisional export data of Handicraft of various segments in FY26 (April-June 2025) stood as following: Woodwares at US$ 241.68 million, embroidered & crocheted goods at US$ 114.70 million, art metal wares at US$ 120.52 million, handprinted textiles and scarves at US$ 56.81 million, imitation jewellery at US$ 40.56 million, miscellaneous handicrafts at US$ 282.86 million.
Export Destinations
Demand for Indian handicraft products has constantly been increasing in foreign markets due to their individuality and great beauty. The major handicraft export destinations for India were the USA, the UAE, the UK, Germany, the Netherlands, and France. The USA was the top importer of Indian handicrafts with a share of 38.69% of the total exports during FY25. India exports carpet to over 70 countries worldwide, primarily to the USA, Australia, and Europe. The largest carpet export destinations for India were the USA, Germany, the UK and Australia with a share of about 59.79%, 5.95%, 4.25% and 4.03%, respectively.
Australia is a significant buyer of handprinted textiles, woodwares, embroidered and crocheted goods, and shawls as artwares. Carpet (handmade and silk) exports to the USA stood at over US$ 297 million in FY26 (April-July 2025), whereas in FY25, it stood at US$ 921 million. The UK is a customer of Indian handicrafts, purchasing art items, crocheted items, handmade handicrafts, wood wares, and imitation jewellery.
The country has also been a major importer of Indian handmade carpets. The UAE is one of the major buyers of handprinted textiles, embroidery goods and art metalware.
Government Initiatives
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 EPCH was established under the Companies Act in 1986-87. The main objective of the council is to promote, support, protect, maintain and increase the export of handicrafts. The other activities of the council are knowledge dissemination, providing professional advice and support to members, organizing delegation visits and fairs, providing liaison between exporters and the government and carrying out awareness workshops.
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