Empowering Indian Handicraft Exporters: Special Incentives and Schemes

Sarthak, a skilled artisan from Jaipur, had spent years perfecting the art of handwoven textiles. His intricate designs told stories of Indian heritage, yet his dream of showcasing them on a global stage seemed distant. The high costs, limited knowledge of export procedures, and lack of financial support kept him restricted to domestic markets.

Then, everything changed when he discovered government-backed handicraft export incentives. With the right schemes and financial assistance, Sarthak transformed his small business into a global brand.

This could be the story of thousands of Indian artisans.

Are you also a handicraft exporter and want to transform your business just like Sarthak?

If your answer is YES then stick with us till the end to learn about the schemes and incentives that can help you position your handicraft business on a world map.

Why Handicraft Exports Matter for India

In India, handicraft has transformed into a flourishing economic activity as a result of the increasing local and global demand.  The sector not only offers sustenance to lakhs of artisans but also has huge growth potential. It significantly contributes towards employment generation and export. However, artisans and small businesses face challenges like lack of education, absence of market intelligence, less exposure to new technology, and limited capital.

Special Incentives and Schemes for Handicraft Exporters

India’s handicraft sector is not just an expression of creativity, it is a significant contributor to the country’s economy. With millions of artisans and a growing demand for Indian handicrafts from around the world, the sector is expected to thrive—provided exporters have access to the right support systems.

1. Duty Drawback Scheme for Handicrafts

One of the most significant challenges for exporters like Sarthak is the high duty imposed on raw materials and production costs. The Duty Drawback Scheme for Handicrafts helps exporters reclaim customs duties paid on imported inputs, thus reducing overall expenses.

• Reimbursement on customs duties paid
• Encourages cost-efficient production
• Enhances global competitiveness

2. MEIS/RoDTEP for Handicraft Exporters

Remission of Duties and Taxes on Exported Products or RoDTEP provides rebates on all embedded taxes, including central and state taxes that are not covered under the Goods and Services Tax (GST). Replacing the earlier Merchandise Exports from India Scheme (MEIS), this scheme ensures that Indian handicraft products are free from the burden of hidden taxes, making them more competitively priced in the global market. MEIS played an instrumental role in offering direct financial incentives to exporters.

• Ensures refunds on embedded taxes and duties
• Helps in maintaining price competitiveness in global markets
• Applies to a wide range of handicraft products

3. Export Incentives for Small Businesses

Generally, small-scale handicraft exporters struggle to enter international markets due to a lack of capital or sufficient investment. The government of India offers various export incentives for small businesses, ensuring that artisans like you and Sarthak can scale up.

• Interest Equalization Scheme: Reduces interest rates on loans for exporters
• Market Access Initiative (MAI): Helps small businesses participate in international trade fairs
• Subsidized credit lines for small-scale exporters

4. Special Benefits for Indian Artisans

Recognizing the role of artisans in the handicraft sector, the government offers special benefits for Indian artisans through skill development, financial aid, and direct market access.

• Ambedkar Hastshilp Vikas Yojana (AHVY): Provides training and financial aid to artisans
• Handicrafts Mega Clusters Mission: Supports large-scale artisan communities with infrastructure and financial aid
• Raw Material Bank Scheme: Ensures artisans get raw materials at subsidized rates

5. Schemes for Handicraft Promotion

To further strengthen the sector, various schemes for handicraft promotion have been introduced. These initiatives focus on branding, international marketing, and sustainability.

• National Handicrafts Development Programme (NHDP): Offers financial assistance for design, technology upgrades, and market access
• Comprehensive Handicrafts Cluster Development Scheme (CHCDS): Aims at creating world-class production hubs for artisans
• Marketing and Export Promotion Scheme: Helps artisans gain global visibility through fairs and exhibitions

How Exporters Can Avail These Benefits

While these incentives sound promising, many exporters struggle with accessing them due to a lack of knowledge. Here are steps that you can take to avail these benefits:

1. Register with the Export Promotion Council for Handicrafts (EPCH)
2. Apply for an Importer-Exporter Code (IEC)
3. Choose the right incentive scheme
4. Monitor and stay updated on policy changes
5. Submit necessary documentation (including GST registration, bank details, product specifications, etc.)
6. Claim benefits

Challenges and the Way Forward

While the government has introduced a number of schemes and programmes to support handicraft exporters, challenges persist. Some of the key challenges are:

1. Awareness: Artisans and craftsmen, especially from remote areas, remain unaware of the schemes introduced by the government. They lack knowledge about how to access them.
2. Complex government policies: Navigating the application processes for some schemes can be complex, preventing artisans from availing benefits.
3. Market Dynamics: Keeping up with changing global market trends and consumer preferences requires continuous learning and adaptation.

To address these challenges, government agencies, non-governmental organisations, and industry experts must work collaboratively. They key areas they should focus on are:

• Capacity Building: Conduct regular workshops and training sessions to educate artisans about available schemes, market trends, and quality standards.
• Simplification of Procedures: Streamline application and approval processes to make it easier for small businesses. Implementing online processes can make these programmes more accessible.

Future of Indian Handicrafts in the Global Market

With increasing support through export incentives, the handicraft sector is expected to grow at a healthy rate. The government has been focusing on promoting digitisation and sustainability within the sector. The ease of doing business in India has further opened new opportunities for artisans as well as exporters.

For artisans like Sarthak, these schemes are not just financial aids but stepping stones to a global marketplace where their craftsmanship is valued. With the right knowledge and assistance, Indian handicraft exporters can do well and flourish in international markets. This will not only benefit them but will also help in boosting overall exports.

Conclusion

The world admires Indian craftsmanship, and with the right handicraft export incentives, artisans can turn their dreams into reality.

The government has been taking significant steps to promote the handicraft sector by introducing programmes and schemes like National Handicrafts Development Programme (NHDP) and Comprehensive Handicrafts Cluster Development Scheme (CHCDS). The primary objective of these schemes are empowering artisans as well as boosting handicraft exports from India. Whether an emerging exporter or an established business, you can take advantage of these schemes to expand your handicrafts business globally.

Now is the time to explore these opportunities and take your business global. With the right knowledge, reach new heights in the world of handicrafts.

FAQs

Related Posts

Simplifying Advance Authorisation Scheme for Beginners Leveraging 3PL Networks: Your Path to Reduced Costs Amazon FBA for Oversized and Heavy Product Shipping How to Export from India for Small Businesses and Medium Enterprises Ways To Reduce Cost of International Shipping Challenges in Managing Global eCommerce Warehousing and Solutions for 2025 Courier from India to Australia: A Complete Guide Centralized vs Decentralized Warehousing