The global market size of the Handicrafts industry has grown at a CAGR of 10% during the last 4 years.

The global Handicrafts market has grown from USD 223 Bn in 2016 to USD 328 Bn in 2020. The key segments that account for ~25% of the global imports are handcrafted furnishing, decorative items, other similar products.

Two key categories – furnishing & decorations and wooden products account for a total share of 50%.

The top 3 product lines in terms of handicraft imports are (i) Furnishing and decorations (25%) (ii) Others (25%) (iii) Wooden products (16%). Fabric articles have showcased a high rate of import growth, increasing from USD 27 Bn in 2016 to USD 79 Bn in 2020. The sector is highly diversified in nature featuring products of glass, paper, wood, fabric, ceramics, metals, etc. A detailed list of products being imported globally is elaborated in annexure 1.

North America and Europe are the key import markets accounting for approximately 67% of global imports of Handicrafts. USA and Mexico imports 20% and 11% of the total global imports respectively.

The key European countries that contribute to ~ 33% of the total global imports are Germany (5%), UK (4%), France (4%), Netherlands (2%), Italy (2%) and Switzerland (2%). Other mid-size import markets with a high rate of growth of imports are Philippines, Japan, Egypt, Saudi Arabia, Canada. Asia is the largest exporter of Handicrafts accounting for 57%of the global exports, followed by Europe that accounts for a 32% share. China is the largest exporter of handicraft products, accounting for 41% of the total exports. India is the 4th largest exporter amongst the Asian countries that are involved in Handicrafts exports, contributing to approx. 2% of the global exports. The key countries accounting for 60% of the global exports apart from China are USA (7%), Germany (5%), Italy (4%) and UK (4%). Other mid-size exporters are Vietnam, France, Poland, Hong Kong, each accounting for 3% of the global exports, followed by Netherlands and Mexico both accounting for 2% of the global exports.

On an average, Uttar Pradesh exports handicraft items of value USD 42.5 Mn per year. The state contributes to ~26% of India’s exports of handicrafts.

Handicrafts is one of the key indigenous products being exported from Uttar Pradesh. The export performance from the sector has been steady, ranging between USD 42 Mn to USD 51 Mn. During the COVID pandemic, there was a significant contraction in the state’s exports to USD 24 Mn however, the sector rebounded to USD 42 Mn exports in 2021, registering ~100% rebound to pre-COVID exports. On an average, UP contributes to ~26% of India’s exports in this sector, averaged for the last 6 years.

Handicrafts under the category of Glass items are the key Products being exported from Uttar Pradesh, accounting for ~22% of the Handicrafts export of the state.
The other key products being exported are Handmade Pouffes, articles of stone, wooden furniture and Christmas decorative articles. Top 6 products accounts for ~65% of state’s average exports of Handicrafts as illustrated in the figure below: (all figures in USD Mn, 3-year average) A detailed list of products being exported from Uttar Pradesh is attached in Annexure 2.

North America is the key export destination for Handicraft products exported from Uttar Pradesh accounting for 55% of the total exports from the state.

Select 10 markets account for 83% of UP’s Handicrafts exports globally. The key markets served by Handicrafts exporters of Uttar Pradesh are USA (53%), UK (6%), Germany (5%), UAE (4%), Netherlands (4%), France (3%), and Australia (4%), Saudi Arabia (4%), Canada (4%) and Spain (4%). UP’s handicraft exports have also showcased appreciable diversification to markets like Sweden, Denmark, Italy, Belgium, China, Nepal, Brazil, Estonia, Poland, etc. with a high rate of growth during the last 3 years. Figure 7 illustrates the distribution of Uttar Pradesh’s Handicrafts exports across the globe.

Key export opportunities are identified for Handicraft exporters of Uttar Pradesh in terms of potential for scaling up of exports and export diversification opportunities and are shown in figure 8. For scaling up of exports, the markets being catered by UP’s exporters at present (contributing ~66% of UP’s exports or top 10 markets) are identified. For export diversification, market opportunities are identified based on their share in global imports. At a market level, existing products and new products are identified for scaling up and diversification of exports respectively. A comprehensive list of product level opportunities in the identified target markets is detailed in annexure 4.

Owing to the significant role of handicrafts sector in the state’s economy, the Government of Uttar Pradesh has undertaken strategic interventions for development of the sector in a mission mode. In 2018, the Government of Uttar Pradesh undertook the flagship ODOP program with the objective to accelerate the development of indigenous district level clusters of Uttar Pradesh. Under the ODOP program, indigenous products that contribute significantly to the districts economy were identified through diagnostic studies of the clusters.
The state is implementing the strategic interventions identified under the diagnostic studies through the schemes like, ODOP Common Facility Center (CFC) scheme, ODOP Marketing development assistance scheme, ODOP Finance assistance scheme (Margin money scheme) and ODOP Skill development and toolkit distribution scheme. Additionally, the state has been supporting on-ground stakeholders in identification and GI registration of potential products indigenous to Uttar Pradesh. There are several organizations that are engaged in development of indigenous handicrafts clusters of Uttar Pradesh. A list of key organizations along with their contact details is mentioned below:

Export oriented incentives offered by the Government of Uttar Pradesh under Marketing Development Assistance and Gateway port subsidy