J&K's handicraft exports crash to Rs 733 Cr in 2024-25, lowest in 3 years

Srinagar, June 21: Jammu and Kashmir’s famed handicraft exports have witnessed a steep and unsettling decline in the financial year 2024–25, with total exports plunging to Rs 733 crore—the lowest in the last three years.

The downturn comes as a jolt to one of the Valley’s most iconic and labour-intensive sectors that has long symbolised both economic resilience and cultural identity.

The export figures reflect a sharp fall from Rs 1,162 crore in 2023–24 and Rs 1,116 crore in 2022–23. This downward trajectory has set off alarm bells within the artisan community and trade bodies alike, as several flagship segments have registered significant losses.

Carpet exports fell from Rs 317 crore last year to Rs 260 crore, while shawl and rumal exports dropped from Rs 477 crore to Rs 306 crore. Other segments such as paper machie also witnessed contraction, dipping from Rs 38.44 crore to Rs 27.61 crore.

The Kashmir Chamber of Commerce and Industry (KCCI) has voiced deep concern over the continued deterioration of handicraft exports. Its president, Javid Ahmad Tenga, said the chamber has persistently raised the issue with both the Central Government and the Jammu and Kashmir administration. “It is very concerning that the handicrafts exports from Kashmir are witnessing a decline. KCCI has been raising this alarm at all levels—be it the Central Government or the J&K Government,” Tenga said.

He stressed that the sector is not only a cultural emblem but also a lifeline for thousands of poor families across Kashmir. With 80 percent of the production cost in handicrafts attributed to labour, the industry plays a crucial role in providing employment, especially to rural and economically weaker sections of society. He pointed out that geopolitical disturbances such as the Russia-Ukraine war have disrupted traditional markets, further weakening the sector’s global footprint.

Tenga argued that the government must urgently revive and support the sector through more aggressive global marketing, financial support, and infrastructure development. He emphasised the importance of reviving government-supported trade expos at both national and international levels to help Kashmiri handicrafts reclaim visibility and competitiveness in global markets. He said such events would not only boost morale among artisans but also connect them with new buyers and trends.

One of the major bottlenecks affecting export performance, according to Tenga, is the lack of adequate air cargo connectivity. He noted that currently only Air India provides cargo services from Srinagar Airport, which limits efficiency and export volumes. He urged authorities to encourage other airlines to introduce international cargo services to and from Srinagar, enabling timely and cost-effective shipments.

Tenga also reiterated the demand for reducing the Goods and Services Tax (GST) on handmade items to five percent, citing the disproportionate burden high taxation places on a sector that is driven more by labour than material cost. He said that such a revision would significantly enhance the competitiveness of Kashmiri handicrafts in both domestic and international markets.

Another key recommendation from KCCI is the introduction of an air freight subsidy, pointing out the significant cost gap in exporting goods from Srinagar as compared to Delhi during the peak season.

Tenga also called for the creation of a separate ITC (HSN) code for Pashmina and other value-added shawls. He said such classification, along with the removal of the cap under the RODTEP scheme, would allow artisans and exporters to receive proper benefits and incentives. The Chamber has already taken up this matter with the Union Minister of Textiles.

As Kashmir’s craftspeople struggle to navigate shrinking markets, rising costs, and a lack of systemic support, the figures from 2024–25 serve as a wake-up call. Without immediate policy action and sustained promotional efforts, the region’s centuries-old handicraft traditions may continue to slide, with grave consequences for both cultural heritage and livelihoods.

It is pertinent to mention that Chief Secretary, Atal Dulloo on June 16, chaired a high-level meeting to review the ongoing and proposed initiatives of the Handicrafts & Handloom Department aimed at promoting and preserving the rich craft heritage of Jammu & Kashmir, while simultaneously improving the socio-economic condition of artisans and weavers.

He called for widespread use of Geographical Indications (GI), QR code tagging, traceability tools and digital authentication mechanisms to clearly distinguish the original handmade products from counterfeits.

He directed the department to aggressively follow up with the Government of India for expediting approvals of dozens of project proposals submitted for promotion of various crafts across the UT.