Exports Down 57% In 10 Years: DGFT probes causes as Srinagar workshop seeks revival plan

Srinagar, Nov 17: With Kashmir’s handicraft exports plunging from Rs 1,700 crore in 2013 to Rs 733 crore in 2024–25 — a drop of nearly 57 percent — the Directorate General of Foreign Trade (DGFT) on Monday initiated a fact-finding push during a workshop on “Capacity Building and Export Promotion,” held in collaboration with the Kashmir Chamber of Commerce & Industry (KCCI).

The workshop, organised in Srinagar, was addressed by Joint Director General of Foreign Trade Utpal Kumar Acharya, senior DGFT officials, FIEO Deputy Director VK Sabharwal, J&K Bank General Manager Vinay Sharma, India Post Senior Superintendent Junaid Shah and others. KCCI was represented by Secretary General Faiz Bakshi, Executive Committee Member Mohammad Latief Bhat and several exporter members.

In his welcome address, Bakshi outlined the centuries-old legacy of Kashmiri handicrafts, tracing their origins to Hazrat Shah-i-Hamdan (RA) and the specialised skills brought from Central Asia. He said lakhs of people in Jammu & Kashmir depend directly and indirectly on handicrafts, a sector that has sustained livelihoods for over 700 years.

Bakshi, however, expressed deep concern over the steep fall in exports. He noted that after the peak of Rs 1,700 crore in 2013, the numbers had dropped dramatically to Rs 635 crore in 2020–21 and Rs 563 crore in 2021–22. Although there was a rebound to Rs 1,116 crore in 2023–24, exports again slipped sharply to Rs 733 crore the following year.

Linking the decline to rising unemployment, Bakshi said that with J&K recording the country’s highest youth unemployment rate of 32.8 percent (MOSPI), any disruption in handicraft production and exports directly impacts artisans and weavers. He welcomed the Centre’s Rs 25,000-crore Export Promotion Mission and hoped that its benefits would reach remote artisan clusters.

Acharya detailed the Rs 25,060-crore Export Promotion Mission approved by the Central government, explaining the new incentives, export-supporting digital portals and opportunities arising from lower import duties abroad. He stressed that exporters must stay updated with global trends and utilise platforms such as Trade Connect, Indian Traders and the India Trade Portal.

The FIEO Deputy Director gave an in-depth presentation on the export process for handicrafts, carpets and related products, urging exporters to keep their IE codes and EPC registrations active. Sabharwal assured full institutional support and said the concerns raised by exporters would be taken up with the relevant authorities. He announced that more such workshops would be organised jointly with KCCI.

India Post official Junaid Shah briefed participants on cost-effective postal export options, stating that India Post’s services were often cheaper than private airlines. He said a dedicated counter had been set up at the GPO for export consignments, with no upper limit on booking and customs clearance available on site.

J&K Bank’s Nishi Kant Sharma assured that banking-related issues flagged by exporters would be resolved quickly. He said documentation challenges would be addressed and qualified staff deployed specifically for export-related processes.

Exporters raised several issues, particularly delays with customs, airline constraints and banking procedures—challenges worsened by Kashmir’s landlocked geography.

Exporter Mohammad Latief highlighted the capping of RoSCTL incentives at Rs 438 for all shawl varieties, including high-value Pashmina and embroidered woollen shawls. He said the uniform cap resulted in an incentive of only Rs 22 for items costing thousands of rupees, causing significant losses to artisans and exporters. He called for immediate rationalisation.

The workshop concluded with Bakshi thanking DGFT for conducting the session in Srinagar and expressing hope that the fact-finding exercise would lead to concrete policy corrections to revive Kashmir’s declining export sector.