India's handicraft export, impacted by the global slowdown, is expected to take a hit in the current fiscal due to the devaluation of the Chinese currency, EPCH said. Export Promotion Council for Handicrafts (EPCH) said that Indian products would lose their competitiveness in the global market due to the devaluation of Yuan. "Indian products will now face problem in global markets. Chinese handicraft exporters would now get the edge over our Indian products. Out competitiveness in the global market due to the devaluation of Yuan. Indian products will now face problem in global markets. Chinese handicraft exporters would now get the edge over our Indian products. Out competitiveness will be impacted. It may hurt our exports," EPCH Vice-Chairman Rajesh Kumar Jain told PTI.
In 2014-15, the country's handicraft exports declined 7.66 per cent to USD 1.38 billion over the same period the previous year.
"The sector employs about 70 lakh people directly and indirectly. So it is a labour intensive sector. The government has to give support to the sector to boost exports," Jain said.
China has devalued the yuan to combat the deepest economic slowdown since 1990 amid falling exports.
The move has made Indian exports to China more uncompetitive and is likely to further widen the bilateral trade gap.
The US and Europe are the major export destinations and together they account for about 60 percent of the country's total handicraft exports.
India exports several handicraft products including house-ware, home textiles, furniture, glassware, bamboo goods, fashion jewellery and lamp & lighting.