Varanasi

District Profile

Varanasi is Located on the banks of river Ganga, Varanasi/ Benares/ Kashi is one of the oldest living cities of the world.

The city has been a great centre of learning, spiritualism and mysticism since ages. Varanasi is believed to be ‘original ground‘created by Shiva and Parvati, upon which they stood at the beginning of time. Further, Buddha is believed to have founded Buddhism with his first sermon in Sarnath (a town around 10 Kms away from Varanasi) at around 528 BCE. Varanasi district is spread over an area of 1,535 sq. km. divided in three tehsils. The key tehsils of the district are Varanasi with ~27% of the total area followed by Rajatalab (~27%) and Pindra (~46%). The district is divided in eight blocks, i.e. Chiraigaon, Cholapur, Kashi Vidhyapeeth, Harahua, Sewapuri, Arajiline, Baragaon and Pindra.20 As per the 2011 Census, the district had ~5,60,000 households with a population of ~36.76 lakh, contributing ~2% of the state’s population. However, it has a density of 2,395 people per sq.km., much higher than the state’s average of 829 people per sq. km.

Geography

Varanasi is located at an elevation of 80.71 metres (from sea surface), in the centre of the Ganges valley of North India. The city is the headquarters of Varanasi district and Commissioner. By road, Varanasi is located 797 kilometres sosuth-east of New Delhi, 320 kilometres south-east of Lucknow and 121 kilometres east of Prayagraj. Varanasi is accessible from every part of India through Air, Rail and Road. It is directly connected with New Delhi, Patna, Kolkata, Mumbai, Lucknow, Bengaluru, Thiruvananthapuram, and other major cities by Babatpur airport. Some Overseas cities are also directly connected from Varanasi by Air.

Topography & Agriculture

The district comprises of two tehsils, Varanasi and Pindara respectively at the time of Census 2011. Total area of the district is 1535.0 sq. km. The rural area covers 1371.2 sq. km and urban recorded 163.8 sq. km. There are eight community development blocks (Vikas Khand) in the district, namely Baragaon, Pindara, Cholapur Harhua, Sevapuri, Arajiline, Kashi Vidyapith and Chiraigaon. There are 702 Gram Sabhas and 1295 villages in the district, out of which 431 in Pindara tehsil and 864 in Varanasi tehsil. Total numbers of inhabited villages are 1258 in the district to say separately 423 in Pindara tehsil and 835 in Varanasi tehsil. In Census 2011 the district covered 5 statutory Towns and 34 census towns. Out of 5 statutory, Maruadih Railway Settlement is notified as Industrial Township. Varanasi Nagar Nigam (Municipal Corporation), is identified as one of the Mahanagars of U.P. Summers are extremely hot with temperatures rising to the 40-to-46-degree Celsius range.

Industrial profile of the district

As Varanasi is primarily known for its fine quality silk and related products including Sarees with Brocades, Lehenga/ Lacha and Stole/ Scarf. Considering their popularity with Indian and global consumers, along with silk products Varanasi is known for Wooden Toys & Laquerware, Glass Beads production, Stone Carving and Gulabi Minakari on Jewellery. Varanasi contributes ~2% of Uttar Pradesh’s GSDP; Manufacturing activity in Varanasi contributes to around 9% of GDDP Details of Existing Micro & Small Enterprises and Artisan Units in the District Varanasi, Category wise details online issued Udyog Aadhar Memorandum units from the Udyog Aaadhar Portal upto 30, June 2020. Study team analysis, district domestic product report, Department of Economics and Statistics of Uttar Pradesh, 2016-17, at constant prices, base year 2011-12 .

Ready-made garments and Embroidery sector of MSME with 6403 units in the district is the most prominent and economy contributing sector of the district. It is followed by sectors such as “Repair and installation of machinery and Equipment,” “Misc. Manufacturing” with 4801 and 1117 units, respectively. Out of total population of 4,589,838 (2011 census), 1,542,806 are working population. Out of total working population, 68.99% are working in other industries, 24.54% are cultivators and agricultural labourers and only 6.47% are household industry workers. This indicates that agriculture is the main source of income in the district.

Categorical representation of Industries in Varanasi

 
S No Industry Total Units Micro Small Medium Total Employment  Total Investment(INR in  Crores) 
1 Food/Agriculture Based 237 230 07 Nil 906 22.30
2 Mineral Based 360 Nil 360 Nil 2101 23.20
3 Silk n Silk based Industries 2750 2459 205 86 29802 260.35
4 Leather and related products 55 40 15 Nil 206 15.30
5 Wood and Wooden products of wood 585 580 5 Nil 3526 51.06
6 Paper & paper products 90 90 Nil Nil 581 29.40
7 Chemical and Chemical Products 580 512 68 Nil 3031 38.31
8 Metal, Fabricated metal products 515 405 110 Nil 2376 33.15
9 Rubber, Plastic and Petro Products 90 90 Nil Nil 861 28.55
10 Electrical and Other Transport Equipment 140 89 41 Nil 1301 6.20
11 Repair and installation of machinery and Equipment 1098 1088 10 Nil 5999 138.58

Occupational Distribution of Main Workers

   
       
                                                                                                                                                                         
S.No. Particulars Varanasi %
1 Cultivators 1,75,578 11.38%
2 Agriculture Labourers 203,029 13.16%
3 Household Industry Workers 99,863 6.47%
4 Others 1,064,336 68.99%
       
   

Major Exportable Product from Varanasi

The total export from Varanasi is approximately INR 656 Crore for the period of September 2020 to November 2021 based on the data provided by DGFT. The following table depicts the value of export of seven major products from Varanasi.

Major exportable product

 
S. No Product Export value (in INR)[1] from September 2020 to September, 2021
1 BABIES GARMENTS ETC OF SYNTHIC FIBERS 4.31 Cr
2 Carpets, Carpetting and Rugs 40.58 Cr6
3 Engineering Goods-DIESEL-ELECTRIC LOCOMOTIVES 147.02 Cr
4 Woolen Durries 2.59 Cr
5 Green Chilli 2.16 Cr
6 Other Handicraft 60.21 Cr
7 polyester and fabrics 18.80 Cr
Sum of Export from Varanasi 275.67 Cr
Product 1: Banarasi Silk Products

Cluster Overview

Varanasi is known throughout India for production of very fine quality silk and renowned for its craft of ‘Silk Weaving’, ‘Banarasi Sarees’ produced by local craftsman are amongst the most preferred, not only in India but also across the world. Some of the other crafts, the city is famous for, are Banaras Glass Beads (Kanch Ke Moti) and Gulabi Meenakari. Banarasi Glass Beads is pure handicraft, the technique used is called ‘lamp winding’, which makes it unique. Gulabi Meenakari (Pink Enamelling) of Banaras has the distinction of being GI-tagged (Geographical Indication) and considered as the most alluring and technical of all metal decorations. It is an ancient form of art which is characterised by pink strokes on white enamel. At present, there are nearly 18000 Hand looms and 7500 power looms in the district and 80% of the total silk products in Varanasi are manufactured on Hand looms only. “Banarasi silk and products” has been granted the Geographical Indication (GI) Tag on September 4th, 2009 by Government of India. Hence Silk was selected as one product of Varanasi district under ODOP programme. The market size of silk products manufactured in Varanasi district has remained in the range of INR 900 to INR 1,300 crore during last five years. Banarasi silk saree represent 80% of this market while other silk products like Dress materials, Lacha/ Lehenga, Dupatta, Stole and Scarf contribute 19% to this market. Silk carpets and furnishing fabrics contribute another 1% to this market. 80% of Varanasi silk products are consumed, domestically, while ~ 20% of Varanasi silk products are exported, primarily to countries like US, UK, Italy, UAE, Malaysia, Singapore, Australia, China, Bangladesh and Nepal. While Bangladesh and Nepal primarily imports silk sarees, other countries import silk fabrics and other silk products like readymade garments. Nearly 70% of the Banarasi silk saree’s domestic market is in southern cities especially Hyderabad, Bangalore, Chennai, Coimbatore, etc. Apart from these, Kolkata, Jaipur, Ahmedabad, Lucknow and Mumbai are the other key Indian markets for Banarasi silk saree. 10 manufacturing clusters in 8 blocks of Varanasi district are involved in silk product manufacturing. These 10 clusters include Kashi Vidyapith, Bajardeeha, Pindra, Cholapur, Ramnagar, Cheeraigaon, Arajiline, Sevapuri, Kotwa, Lohta and Kuri. Further, ~10,000 handlooms and ~7,500 power looms wove silk in Varanasi in 2018. Amongst these, 19,1573 workers estimated to be working in the handloom industry while 10,645 workers in the power loom industry across the value chain leading to a total of 29,802 people that are employed in the industry. Silk product clusters in Varanasi and number of weavers within the clusters and No. of units and people engaged in Silk product manufacturing in Varanasi

No of people engaged in manufacturing of Silk products

 
Sr No Particulars Units Value
Handloom Technology
1 Handloom Households No of Households 1500
2 Handloom Weavers No of People 26,779
3 Silk Handloom Households No of Households 10,000
4 Weavers Weaving Silk on Handloom No of People 16,067
5 People Employed in Silk on Handloom(including indirect job) No of People 19,157
Poweloom Technology
6 Powerlooms Number of Looms 75,000
7 Poweloom Weavers No of People 75,000
8 Poweloom Weaving Silk Number of Looms 7,500
9 Poweloom Weaving Silk on Powerloom No of People 7,500
10 People Employed in Silk manufacturing using powerloom No of People 10,645
  (Including Indirect Job)    
Total number of people engaged in Silk Products Manufacturing (5+10) 29,802

Product profile

In keeping with the name of the holy city of Varanasi, the elegant Banarsi silk sari is a symbol of grandeur and nobility. The sarees are among the finest sarees in India and are known for their gold and silver brocade or zari, fine silk and opulent embroidery. The sarees are made of finely woven silk and are decorated with intricate design. The special characteristics of these sarees are their Mughal inspired designs such as intricate intertwining floral and foliate motifs. It is also known for its gold work, compact weaving, figures with small details, metallic visual effects, pallus, jal (a net like pattern), and mina work. Varanasi silk is in great demand and is used in home furnishings, silk fabric and other utility products.
Varanasi saris are adorned with intricate designs and zari embellishments making it popular during traditional functions and weddings. Earlier, the embroidery on sarees were often done with threads of pure gold. In 2009, weaver associations and cooperatives together secured Geographical Indication (GI) rights for ‘Banaras Brocades and Sarees’. This silk is used in large part for the production of Banarasi saris, which are a regional type of sari made from silk.

Product Portfolio

The following are the key products manufactured in the cluster:;

The following are the key products manufactured in the cluster

 
Product Type Market Share Description
Silk Saree 80% The famed Banarasi gold and silver brocade saree is made with fine heavy gauge silk yarn woven as warp and weft along with gold and silver threads (zari yarn) to create brocade designs. It is the most widely manufactured silk product in Varanasi. Some of the most famous silk sarees of Varanasi are the Banarasi jamdani, jangla, jamawar, tanchoi, tissue, and cutwork and butidar sarees.
Lacha 10% Banarasi silk lacha or lehenga has a high demand, particularly in bridalwear segment.
Dress Material 5% Banarasi silk salwar-suit are the main constituents of dress material. It engages 3 looms at a time for production, hence weavers prefer Sarees at the place of dress material for economy reason.
Dupatta,Stole & Scarf 4% These are evergreen items and used by different types of customers at all the places, however is made by weavers on order basis.
Other Silk Products 1% Silk Carpets are also made with Banarasi Silk, which is made by weavers on order basis.

Status of GI Tag

Varanasi Silk Craft has been awarded Geographical Indication (G.I.) status in 2009 and is valid up to 2028. Total number of authorized users are 88. In 2009, Banarasi Sarees and Brocades got the GI certification. In the absence of the GI tag, it becomes difficult to authenticate original Banarasi silk saree from other imitation products, i.e., sarees manufactured using Chinese silk. As per GI regulation, any product which is not made on hand loom does not come under the category of Banarasi brocade. ;

Hierarchy of Cluster Stakeholders


Industry Associations

Following are 3 principal Industry Associations/SPVs that are working for the development of SIlk in Varanasi:
► Banarasi Vastra Udhyog Sangh
► Eastern UP Exporters Association – EUPEA
► Indian Institute of Handloom Technology, Varanasi Trade associations like Eastern UP Exporters Association (EUPEA) help the weavers in export-related activities and impart knowledge about export import policies of silk products. Industry associations like Banarasi Vastra Udhyog Sangh work for artisans’ rights and welfare. ;

Export Scenario


HS codes Silk Products

HS codes under the category are demonstrated and analysed based on relevancy because major portion of the export from the silk product of Varanasi routed through third parties, who operate from Delhi, Mumbai and other ports of the country. Below is list of prominent HS codes under the category:;

HS codes for Silk and Similar Products

 
Sl. No. Product HSN Code Exports from India (‘INR USD, 2019) * Exports from UP (‘INR USD, 2019) *
1 Woven Fabrics Containing Predominantly, But < 85% Silk Or Silk Waste By Weight 500790 18435 612
2 Shawls, Scarves, Mufflers, Mantillas, Veils and Similar Articles Of Silk Or Silk Waste 621410 73076 16360
3 Woven Fabrics Containing >= 85% Silk or Schappe By Weight 500720 47215 4272
4 Woven Fabrics of Noel Silk 500710 4775 3969
      143501 25213

Current Scenario

The export scenario of India and Uttar Pradesh have been analysed on the basis of the export statistics of HS codes mentioned above under which Silk Saree and similar products are exported. Alongside are the key facts pertaining to the analysed product codes. Based on our analysis, we have identified key synergies that should be developed to expand our current reach and potential; These synergies are divided into immediate and long term. The immediate synergies include countries with Signed FTA’s, high growth potential, and one is catered by India and not UP. Whereas the long-term synergies include countries with untapped market potential which can only be fulfilled if UP’s exporters comply and raise the quality of the product to the highest standards, freight rates are more subsidized and major efforts is required in marketing which will require time to accommodate the same. ;

Export Potential

In 2019, India exported Silk to various countries worth USD 91940 thousand (for silk products covered under below mentioned 04 HSN codes-500710, 500790, 500720, 621410) decrease of 30% as compared to previous year. For the same year, UP contributed USD 36560 thousand, an increase as compared to previous years. The increasing exports from UP is year on year and if Government Schemes like ODOP, Handicraft Department and EPB provide support to Artisans for quality improvement, packaging and procurement of good quality raw material, then the uptrend will help in doubling the growth rate of export in next five years. This section has been divided into 4 sub-sections, basis the products manufactured and sold under the silk sarees products category of Varanasi. To gauge our understanding of where India stands relative to the world on the trade of these products, each product has been delved into as a separate sub-section defined by its exports and imports in comparison to its competitors and potential markets to target in the future. The consolidated list of countries that India can target, with respect to the analysis carried out in each sub-section are USA, France, Italy, Turkey, UAE, Madagascar, Malaysia, Singapore, Viet Nam, South Korea, Japan and Indonesia as mapped below.
Product: 500790 Woven Fabrics Containing Predominantly, But < 85% Silk Or Silk Waste By Weight India's exports represent 10.5% of world exports for this product, ranking it at number 4, behind Italy, China and France. While the value of India’s exports over the last 5 years depict a fluctuation, they have overall decrease by Cumulative Annual Growth Rate (CAGR) of 8%. Product 500720 - Woven Fabrics Containing >= 85% Silk or Schappe By Weight Uttar Pradesh exports this product to USA, Oman, Nepal, Singapore, Thailand, Canada, UAE, Lebanon, Italy, Saudi Arabia, Australia, Mauritius, Japan, Germany India's exports represent 8.3% of world exports for this product, ranking it number 3, behind China and Italy. While the value of India’s exports over the last 5 years has decreased by CAGR 1.0%, exports from the state of Uttar Pradesh has increased by CAGR 78.3% (FY F2016-17 to 2018-19), with a sharp hike post 2017-18. The top 12 importers for this product in the world are given below, alongside the value of the product imported in 2019. Product 621410: Shawls, Scarves, Mufflers, Mantillas, Veils and Similar Articles of Silk or Silk Waste India's exports represent 8.8% of world exports for this product, ranking the nation at number 3, after France and Italy. Despite the value of India’s exports decreasing by CAGR 9% in the past 5 years. India is primarily in competition with France and Italy. France and Italy account for 37.8% and 24.9% of world exports for this product i.e. more than triple and double of India’s level of exports. Product: 500710- Woven Fabrics Of Noil Silk India's exports represent 5.2% of world exports for this product, ranking it at number 6, behind Turkey, Italy, UK, China and Singapore. Similarly, exports from the state of Uttar Pradesh has increased by CAGR 207% (FY 2016-17 to 2018-19), with a fall in 2017-18, followed by a steep rise in 2018-19. Being in the same region, China is India’s foremost competitor. Though, Italy and UK combined account for 57.6% of the world imports for this product, and nearly 4- and 3-times India’s exports, respectively.

Potential Areas for Value Added Product

Product Diversification is one of the most crucial product uplifting strategies which in turn is an important part of a product’s export. This plays a vital role in any products exports as it is a product uplifting strategy. Most artisans are not bothered about changing their product range and they fail to understand that it is an integral part of comprehensive marketing. Diversification can be brought in the cluster by:
1. Development of a new products: The artisans of the district should be encouraged to diversify the product categories and must be provided with enough resources to create innovative products without losing the ancestral essence of the craft. The artisans going forward should focus on creating Sofa covers, dining covers, bedsheets, Sherwani (top looks like men’s sherwani). Combination of Chikankari and Zari product on wall hanging is also in high demand. 2. Modifications of Existing Products It has also been found that most of the artisans use no strategy for making modifications to the existing products in the light of design and fusion. The artisans can make fusion products by blending zari & Chikankari work with madhubani or block prints. They can also expand in terms of the materials they use for making the products by introducing cotton and jute into their product range.

Product 2: Tourism

Cluster Overview

The land of Varanasi (Kashi) has been the ultimate pilgrimage spot for Hindus for ages. Hindus believe that one who is graced to die on the land of Varanasi would attain salvation and freedom from the cycle of birth and re-birth. Abode of Lord Shiva and Parvati, the origins of Varanasi are yet unknown. Ganges in Varanasi is believed to have the power to wash away the sins of mortals. The rich culture and heritage of Varanasi attracts tourist not only from India but also from the world. The place is an important part of Buddhist circuit and as a result a lot of tourists comes from China and Sri Lanka. The Varanasi has also been chosen as City of Music by UNESCO under Creative Cities Network. The variety of handicraft work like black pottery, glass beads, Zari Zardozi etc. attracts tourism from around the globe. Since Uttar Pradesh for many years carrying a consistent and uniform image for its Religious Tourism of Kashi-Mathura; Kashi has its own image due to oldest religious significance of the town. Millions of tourists happen here throughout the year due to various festivals as Shravan Maas, Shivratri and Deepotsav. Ganga attracts millions of National Tourists throughout the year.
Varanasi has numerous ashrams around the ghats. Several hotels are located near the ghats and offer a beautiful view of the Ganga. Affordable hotels and lodgings are available in the interior sections of the city.Food in Varanasi is basically traditional, plain and simple. Restaurants located closer to the ghats cater more to foreign tourists. To get the taste of authentic Banarasi food, head to the main market area. There are around 3000 hotels in Varanasi and several tour operators. The detail of tourist influx is detailed below: Tourist Inflow in Lakhs for Varanasi Region As is evident from above table, that there is a continuous growth observed till 2019, (exception for 2020, due to global pandemic of corona virus and worldwide lockdown) the footfall in the tourist influx to Varanasi was near to 2 Crores every year and it is supporting in different allied sectors of Varanasi. Other than Hotels and Restaurants, the handicrafts such as Gulabi Meenakari, Wooden Toys, Soft Stone, Zari Zardozi, Glass beads, Metal Repouzee are also popular amongst the tourists. Silk Saree and brocades, dress material is contributing 7% of the turnover from the district. Varanasi, owing to its rich traditional fabric and ghats, attracts more than 60 lakh domestic and international tourists each year . The peak season is regarded as October to March with tourist inflow being 60% of the total domestic tourist coming in a year while for a foreign tourist it is 71%. The average stay is 2-3 days for both domestic and foreign tourists . The cluster is not limited to service sector as the same is indirectly supporting marketing of Handicraft products, Textile, Food and Beverages, Beauty and wellness products as well. Ganges is said to have its origins in the tresses of Lord Shiva and in Varanasi, it expands to the mighty river that we know of. The city is a center of learning and civilization for over 3000 years. With Sarnath, the place where Buddha preached his first sermon after enlightenment, just 10 km away, Varanasi has been a symbol of Hindu renaissance. Knowledge, philosophy, culture, devotion to Gods, Indian arts and crafts have all flourished here for centuries. Also a pilgrimage place for Jains, Varanasi is believed to be the birthplace of Parsvanath, the twenty-third Tirthankar. The Capital of all knowledge- Discover the most ancient seat of education in India World the famous scholars and their `Shastrarthas’, the great scholars, universities, college, schools, Madarsas and Pathshalas and Guru Shishya traditions, the epics, famous literary works, languages and dialects, journalistic traditions- newspapers and magazine, and famous libraries. Organisation of sacred complex and social spaces, the cultural pluristic, linguistic and ethnic groups. Discover the city of affluence, intellectuals, oral traditions, castes and customs, personalities, professions, communal harmony. Discover the rural Varanasi. And finally (and with deep insight) peep into, the pleasure of Pans, Thandai, Gamcha, Bahri Alang and Mauj Masti. Banaras has been famous for its Music both vocal instrumental, it has its own dance tradition. Add to this a very rich stock of folk Music and drama (esp. Ramlila), the tradition Musical soirees, fairs and festival the rich tradition of Akharas, games and sports. Discover the ancient College of Plastic Surgery, Sushruta, Dhanvantri (God of Medicine), Divodas, and practice of all the ancient and modern systems of medicine in action. Discover the spots around Varanasi, instituions, story of freedom struggle and the martyrs, history of Kashiraj, history of Sarnath, history of Bhadohi (Carpet town), of Mirzapur, of Ghazipur, know about the famous travellers and tourists, of the `Nijam’. And finally having seen the Panorama of Banaras, its continuity of culture, discover the identity of Banaras.

Tourist Inflow in Lakhs for Varanasi Region

 
2018 2019 2020
Indian Foreign Total Indian Foreign Total Indian Foreign Total
192.78 8.054 200.59 200.52 7.08 207.61 87.05 1.86 88.93

Places to visit in Varanasi

There are several attractions for the tourists in Varanasi, which includes various Ghats around the Ganges, Temples and Forts such as:
► Sarnath
► Shri Kashi Vishwanath Temple
► Dhamek Stupa
► Banaras Hindu University
► Ramnagar Fort
► Dashashvamegh, Manikarnika, & Assi Ghat ;

Cluster Stakeholders


Industry Associations

Following are four principal Industry Associations/SPVs that are working for the development and support of Tourism in Varanasi:
► Shri Kashi Vishwanath Special Area Development Board (SKVSADB)
► Varanasi Tourism Association (VTA)
► Travel Trade Association of Varanasi
► Tourist Guide Association of Uttar Pradesh ;

Export Scenario

Varanasi, owing to its rich traditional fabric and ghats, attracts more than 60 lakh domestic and international tourists each year . Which not only support Hotels and Restaurants but also contributes to allied sectors such as Agriculture, Textile, Handicraft etc. The detailed export analysis for allied sectors/products is done separately into the subsequent sections.

Product 3: Other Handicrafts

Cluster Overview

There are places in Varanasi where ancient arts and crafts are still present in various forms it is preserved by the local artisans, weavers, engravers etc who produce the products as Wooden Toys and Lacquerware, Zari Zardozi work over different fabrics, Gulabi Meenakari on jewellery and artifacts, Metal Repousee Art, soft stone and Jali work, Glass Beads etc. There are pockets around the district where not only MSMEs, but Households are also involved in making the products for ages. An industrial snapshot for different products is mentioned below:

Other handicrafts of Varanasi

 
Sr No Other Handicrafts of Varanasi* Number of Artisans Number of Small and Medium Units Major Cluster Pockets
1 Banarasi Gulabi Meenakari 200 3 Medium/Small
40 Micro
Gai-ghat, Kal bhairav Chowk
2 Varanasi Wooden Lacquerware and Toys 2500 3 Medium/Small
400 Micro
Khujua, Kashmiriganj, Harrauha
3 Varanasi Soft Stone Jali Work 1200 2 Small
22 Micro
Ramnagar, Chetganj
4 Banaras Metal Repousee and Craft 300 - Ramnagar
5 Varanasi Glass Beads 600 1 Medium Chandpur

Product Profile

Varanasi is one of the oldest cities in the country and famous for its holiness as place of lord Shiva. The city is still preserving the arts and handicrafts in the form of Banarasi Silk Saree, Banarasi Pink Meenakari, Glass beads, Wooden Toys, Soft Stone, Zari work and many more are popular at National and International level. Varanasi today is the “archetype of India”, “perceived as a site of vigour and vividness and multiplicity, diversity and unity are easily envisioned in its religion, culture, society and economy–altogether making a mosaic, called ‘microcosmic India’. From the mentioned products we have detailed out the major 4 oldest handicrafts are still performing well in the market. Below are few glimpses of Varanasi Silk Saree, Soft Stone, Wooden Toys and Gulabi Meenakri(Pink Enamelling on Jewellery) arts of Varanasi.
“Banarasi Pink Meenakari Gifts were presented to US Vice President Kamala Harris and Australian Prime Minister Scott Morrison by Prime Minister Narendra Modi during his recent visit (2021) to the United States of America.” An idol of Lord Ganesha, was included in a gift pack for then Japanese Prime Minister Shinzo Abe during his visit to Varanasi on December 12,2015. Prime Minister expressed his gratitude towards the artisan of Gulabi Meenakari in bringing out the theme International Yoga Day through this craft because an idol in yogic posture made of pure silver, 12 inches tall out of vibrant colours attracted the attention of the world towards beautiful masterpiece of local craft.

Product Profile

 
Silk Saree Wooden Lacquerware and Toys Gulabi Meenakari Soft Sone (Jali Work)
History &  Cultural SignificanceHistory
The earliest brocade and Zari textiles of Banaras was found in the 19th century. With the migration of silk weavers from Gujarat during the famine of 1603, it is likely mention that silk brocade weaving started in Banaras in the seventeenth century and developed in excellence during the 18th and 19th century. During the Mughal period. Around 14th century, weaving of brocades with intricate designs using gold and silver threads became the specialty of Banaras. Lacquer toys are one of the ancient and iconic amongst the carving work range, it’s presence in East Asian countries and Europe confirms the roots of the art. heir unique design shows the culture significance of the place and makes this art popular amongst other regions. As per artisans, this cluster was started 1000 years ago in Mirzapur with wooden toys and from their people migrated to Varanasi, the work got documented in 1941, when The craft got admired by the market, Khujua and Kashimiriganj cluster got developed with more than 100 families. Raja Man Singh of Amber brought master enamellers from Lahore to Jaipur, Rajasthan in the 16th century. Jaipur is now the center of traditional Meenakari production. Intricate Meenakari executed on a base of gold and kundan has long been practiced at Bikaner and Jaipur. Nathdwara, Bikaner and Udaipur are famous for their silver Meenakari. The art was learnt from Persian craftsmen who visited the court of Avadh at Lucknow in the 17th century. By 20th century Varanasi Meenakari products have established brand image of their own in the country. Under the Maharajas of Varanasi (who patronized varied art form). stone art moved beyond architectural buildings to a smaller but refined version– that of carving miniature forms of animal uses Ivory to carve Migrations largely took place during the Revolt of 1857, when people from Jhansi moved to Varanasi, the hometown of Rani Lakshmibai, to seek refuge. After Varanasi became their permanent homes, many of these communities brought with them soft stone, quarried around parts of Jhansi, to Varanasi and Ramnagar. Thereby, soft stone replaced ivory as being the raw material to be used for the craft.
Product Profile
described in previous sections Varanasi Wooden Lacquerware & Toys are important component of life at every level, from children’s toys to marriages. This craft is much popular from Varanasi to across the world, traditionally made by Kunder Kharadi Samaj and Vishwakarma community and rural area artisans prepare various type of traditional motifs and designs including the wooden mask, figure of God & Goddess, flying style, various type of faces, Sindurdani, different type of Latoo (spinning tops), flowerpot, dolls, decorative items through Lacquerware and painting technique. The Products under Gulabi Meenakari range from Carved Silver Boxes, postures of Lord Ganesha, pair of Ganesha Laxmi, and jewellery items as earrings, necklace, pendants etc. to many other decorative items Meenakari, also called enameling, is the art of decorating a metal surface by fusing colours and mineral substances to it. This art was introduced to the city of Varanasi by Persian enamellists during the Mughal era around the early 17th century . The word 'mina/meena' is the feminine form of the Persian word 'Minoo' and means 'heaven'. It refers to the azure colour of heaven Jali or fretwork is intricately carved on soft stone and its process requires supreme mastery of masonry and design making. The Varanasi soft stone jali work epitomizes both high skill and: superior quality of craftsmanship. Delicately chiseled and decorated with inlay work these elaborately carved jalis demand time in their making along with the skill and creativity of the masters. In Varanasi the jali craft work can be seen on forts, zamindari homes, places of worship and ancient monuments all of which are a testimony tr its antiquity. Statues of religious significance are also made using this technique. To further enhance the beauty of these sculptures they would be embedded with semi-precious stones and shell- work. Today small items of utility and decor are also produced such as table tops, boxes, coasters, trays,etc. Given their small size and the intricate work of jali making the Varanasi soft stone craft remains skill of the masters.

Status of GI Tag

Varanasi Soft Stone Jali Work has been awarded Geographical Indication (G.I.) status in 2018, Banaras Gulabi Meenakari Craft received GI Tag in 2015, Metal Repoussé Craft, Wooden Toys and Glass Beads in 2016. Zari Zardozi and Wood Carving art of Varanasi received GI Tag in 2020. ;

Cluster Stakeholders

The stakeholders for the Handicraft Cluster are Weavers/Artisans/ Gold Smiths/Workers who mainly connected through the Unit Holders/Traders and Manufacturers. Mentioned bodied received support from different institutions on Training, toolkits, Margin Money, CFC, Loans etc.

Support Institutions

Following are the support Institutions that are working for the development of Handicraft in Varanasi:
► Office of Development Commissioner (Handicraft)- Ministry of Textiles
► District Industries and Entrepreneurship Promotion Center (DIEPC), Varanasi
► Export Promotion Council of Handicraft (EPCH)
► Handicraft Export Association, Varanasi
► National Small Industries Corporation (NSIC)
► IIT-BHU
► Uttar Pradesh Export Promotion Board
► Agriculture and Processed Food Products Export Development Authority (APEDA) ;

Export Scenario

The handicrafts sector is of importance to the Indian economy as it is one of the largest employment generators and account for a significant share in the country’s export. The state and regional clusters contribute significantly to handicrafts export. The Indian handicrafts industry is fragmented with more than seven million regional artisans and over 67,000 exporters/export houses promoting regional art and craftsmanship in the domestic and global markets.

HS Code: For Gulabi Meenakari

HS codes under the category are demonstrated and analysed based on relevancy because major portion of the export from the Handicraft product of Varanasi routed through third parties, who operate from Delhi, Mumbai and other ports of the country. Below is list of prominent HS codes under the category: This chapter covers details analysis of top exporting product for Jewellery products with HSN 711790 and 711311. ;

HS Code with description

 
HS Code Description World Exports
(USD Thousand)
India Exports
(USD Thousand)
Top Countries whom India Export
711790 Imitation jewellery (excluding jewellery, of base metal, whether or not clad with silver, gold or platinum) 14,56,535 84,941 USA, UK, Nigeria, Spain, UAE
711311 Articles of jewellery and parts thereof, of silver, whether or not plated or clad with other precious metal (excluding articles > 100 years old) 75,60,517 19,79,404 India is top exporter for Chine, USA, UK, UAE, Germany, Australia
Imports
HS Code Description World Imports
(USD Thousand)
India Imports
(USD Thousand)
Top Importers
711790 Imitation jewellery (excluding jewellery, of base metal, whether or not clad with silver, gold or platinum) 13,56,097 14,062 USA, France, UK, China, Germany
711311 Articles of jewellery and parts thereof, of silver, whether or not plated or clad with other precious metal (excluding articles > 100 years old) 65,02,965 43,471 USA, Hong Kong, Germany UK

Current Scenario

Product: 711790 Type of product: Articles of jewellery and parts thereof, of silver, whether or not plated or clad with other precious metal (excluding articles > 100 years old) India's exports represent 7% decline for this product code ranking 5th in world export behind Italy. The value exported from world in 2021 is USD 15,28,894 Thousand. China is highest exporter in the world and remain the main competitor of India. China accounts for 18.18% of the world exports for this product, thus ranking it at number 1 worldwide. On the other hand, Italy accounts for 9.05% for world export for this product ranking it at number 4 before India. China exports 3 times India’s volume of export. The value of India’s exports over the last 3 years have decreased by CAGR 15%. And, as per data FY 2018-19 to 2020-21 for exports from the state of UP, it is observed that there has been decrease in the CAGR by 5.91%. ;
Importers of the product: The following figure highlights the top importers of the world along with their value of exports (2020) and annual growth (2016-2020) in percent: The following figure highlights the top 15 countries importing from India along with their value of export (2020) with their annual growth (2016-2020) in percent.

HS Codes analysis for Wooden Lacquerware and Toys

The chapter focusses on the export scenario of India and Uttar Pradesh and then deep dives into the export statistics of product code 9503 stating the target countries for market expansion of the products. There are various HS codes through which export happen from Varanasi under Handicraft, we have chosen HSN Code 950300 for the below analysis to showcase India and World scenario under this category. India exported wooden handicrafts & toys $75.5 Million during 2018-19. Wooden toys is an ancient Indian tradition, with the industry flourishing in the country over the ages. ;
The traditional craft of toy making at Varanasi was one of the major activities in the city by providing livelihood to more than 2500 artisans. With the decreasing demand and tough competition from machine made toys, the craft shrank considerably and at present only around 1500 artisans are actively practicing in the craft. If proper support is not provided the craft may languish from Varanasi. Some major steps are required to be taken up to protect this craft and to create employment to local artisans. Unlike, most countries, in India skilled/unskilled/semi-skilled is easily available and India's export policies are liberal. India also has various schemes and policies chalked out for its MSMEs and traditional industries to uplift their sales and profits. In recent years, India has made the shift towards contemporary designs, necessitating an upgrade in production and processing techniques. India is seen as a flexible supplier that can quickly respond to changes in consumer preferences. Varanasi district have potential not only for wooden toys but a famous tourist spot & best known for God Shiva’s place. India also has the largest presence of institutions that has the resources and knowledge to handhold the artisans to adopt modern trends and technology. The top 11 importers for this product in the world are as depicted below;

Banaras Beads

Glass Beads, Fancy Beads, Hollow Beads etc. are the main products from the cluster there are more than 11000 industrial units make turnover of INR 150 Crore where ~20 Crore is export part access to the markets of European countries, Middle East, USA etc. The cluster responsible for the employment of more than 20,000 Artisans/workers. The glass beads sector is led by Banaras Beads Limited , which is an Export house recognized by Government of India, established in the year 1940. The company has approximately 500 employees & it is a Public Limited company having more than 6000 shareholders. It is listed in leading stock exchange of India BSE&NSE The major recommendation in the glass beads sector is the formulation of strategy to do away with the Chinese dominance as a supplier. The Chinese influence is not only limited to the supply of finished products but also as a service provider of the quality finished products to the former client base of Banaras beads. Although there is an establishment of SPV taking place, which aims at making the glasses as well but its inception to the operation stage is delayed to the considerable extent due to the government process. A single window clearance system can serve the purpose. Besides, a product check of the one delivered by China and a survey of the trend followed in glass beads can assist in leap frog. The proactive support from MSME is the need of the hour. ;
Banaras Beads Limited Banaras Beads Limited is an Export house recognized by Government of India, established in the year 1940. The company has approximately 500 employees & it is a Public Limited company having more than 6000 shareholders. It is listed in leading stock exchange of India BSE&NSE. Banaras Beads is India’s largest manufacturer of Glass Beads, Fashion Jewelry & Accessories. It also deal in Beads made from Clay, Brass, Aluminum, Copper, Resin, Ceramics, Horn, Bone, Semiprecious stones, Agate, Lac, Hand Painted Beads, Spray Painted Beads etc. The company also trade in Leather Cords, Cotton Wax cords & Misc. Handicraft Products out of India. The Glass Beads are Handmade (Lamp Work) as well as Machine made (Pressed Beads and Tube cutting Machine). There are latest machines used for producing beads from India, Japan, China, Israel, and Czech Republic & Germany. In last many decades, the company has grown every year & today it is one of the biggest in the trade. There are various HS Codes used to perform the export of Banaras Beads and products
► 70181020- Glass Beads
► 56022100- Felt Items
► 74199940- Copper Items
► 96019030- Bone Items
► 39261019- Plastic Beads For the year of 2020-21 the exports are INR 19.32 Cr and for FY 2021-22 the exports are INR 18.86 Crore. However, from the ports of Varanasi their was no export recorded in this product.

Export Potential-Handicrafts of Varanasi


► The total exports of Handicraft from Varanasi district were around INR 600 Lakhs in year 2020-21.
► India's exports represent 7.1% of world exports for this product, its ranking in world exports is 3.16
► Other prominent products exported from Varanasi District are Engineering goods, Rice, Green Chilli, Wheat etc.

Potential Areas for Value Added Product

Product Diversification is one of the most crucial product uplifting strategies which in turn is an important part of a product’s export. This plays a vital role in any products exports as it is a product uplifting strategy. Most artisans are not bothered about changing their product range and they fail to understand that it is an integral part of comprehensive marketing. Diversification can be brought in the cluster by:
► Development of a new products
► Modifications of Existing Products

Product 4: Fruits and Vegetables

Cluster Overview

Varanasi is predominantly an agrarian region of which most of the district’s population engaged in agriculture and related activities. Sugarcane, rice and wheat are the main crops of the district accounting for the major portion of the gross area sown. Sorghum and Maize is also grown in the region. The overall agricultural land use in Varanasi (for the year 2014-2015) comprises of the sown area of 95,700 hectare. Out of the sown area 62,123 hectares is sown more than once. In horticulture practices, marigold flower is widely grown in the region, which is used in the religious offerings.

Product Profile

The product selected under the category is Green Chilli- Indu Mirch, which is the ODOP product from Varanasi under MoFPI’s ODOP scheme. Chill is one of the imprtant crop which is being cultivated in varanasi district. Over the recent years, the farmers interest in producing the Chilli has weaned due to less market price and other factors. Chilli production in the Varanasi district is 1.860 thousand MT. It is one of the most important produce in the district and famous for its spiciness.
► No. of units: 5-6 chilli processing currently; 2 FPOs are also cultivating the chilli as one of their main produce
► No. of farmers: about 400- 600
► Total turnover of the cluster: ~INR 10 Crores
► Area under Chilli Cultivation: 765 Hectares

Status of GI Tag

Green Chilli has been awarded Geographical Indication (G.I.) status in 2015 and is valid up to 2029.;

Export Scenario


HS codes

The from Varanasi under the Green Chili Category is INR 2.17 Crore for the period of Sept 2020 to Sept 2021.;

HS codes for Green Chilli

 
Sl. No. Product HSN Code Exports from India (‘INR USD, 2020) * Exports from UP (‘INR USD, 2020) *
1 Fresh or chilled fruits of the genus Capsicum or Pimenta 070960 54773 350

Cluster Stakeholders


Industry Associations

Following are four principal Industry Associations/SPVs that are working for the development of Chillis:
► Saraswati Pharma
► National Horticulture Board (NHB)
► Trisagar Pharma
► Agriculture and Processed Food Products Export Development Authority (APEDA) ;