The European Union (EU) is fast becoming one of the most significant export destinations for Indian handicrafts, after the US. Indian handicraft units have already made their presence felt strongly in Germany and Italy. Lucrative opportunities and the rising global popularity of Indian handicrafts are prompting small and medium enterprises (SMEs) in the handicrafts sector to foray into the EU with their merchandise.
Though the Indian handicrafts industry has witnessed a consistent growth of 15% over a decade, the country's share in the US $100 billion international handicrafts market is merely 2%. The main reason for this is the inability of Indian handicrafts to tap the immense potential of overseas markets such as the EU. The Indian handicrafts sector has not been able to fully capitalise on the profitable opportunities in the European handicrafts market
Nearly 46% of the EU handicraft imports come from China while India accounts for only 5% of the same. To match the export volumes of China, Indian SMEs have stepped up their production and exports of wooden gifts and handicrafts to the EU.
In the past few years, Indian SMEs have increased their supplies of handicrafts to Germany, France, Spain, Italy and the Netherlands. This can be largely attributed to the rise in demand of wooden gifts and handicrafts in these countries. Participating in handicraft trade fairs in the EU has helped Indian SMEs gain an invaluable insight of the EU market. They have also established linkages with some distinguished importers and distributors.
Nevertheless, Indian handicraft exporters need to resolve issues concerning quality, colour, environmental friendliness of products and compliance of products with EU standards and regulations to gain the loyalty of this market. Diversifying their product line-up and expanding their exports and operations will also help handicraft units to capture a larger market share in the EU.
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