Study of EXPORTs OF HANDICRAFT IN J&K – last 5 years

PRESENTED BY-Anam Gupta (0035HBCM11)

Samarth Gupta (0027HBCM11) Prabhjyot Kour (0052HBCM11)

Course No. BCH-606 GOVT SPMR COLLEGE OF COMMERCE

JAMMU

HISTORICAL BACKGROUND OF J&K HANDICRAFTS

•The handicraft activities carried out in Kashmir Valley are famous throughout the world because of their quality, art and design. This sector has great potential to generate gainful employment within and outside the state.• Being a labour intensive sector, handicrafts can be established both in rural and urban areas and can be taken off as a subsidiary occupation in the valley. The state of Jammu and Kashmir is famous throughout the world for its scenic beauty, bracing climate and craftsmanship skills .

IMPORTANCE OF EXPORT OF HANDICRAFTS IN JAMMU & KASHMIR

Handicrafts are vital source of revenue generation for Jammu & Kashmir state. This industry is unique in terms of design, cost and quality of products and thus provides a competitive advantage on other national and international players of handicrafts market. Handicrafts, the traditional industry of the state, is receiving top priority by the state government in view of employment potential and demand for wood carving, paper-machine, carpets, shawls and embroidery. Kashmiri silk carpets is famous over the world and earn a substantial foreign exchange. The state has established Jammu and Kashmir handicrafts Sales and Export Promotion Corporation and J&K State Handloom Development Corporation to promote development and growth of the handicraft sector in the state.

The handicraft sector occupies an important position in the economic structure of J&K state. Being eco-friendly, this sector suits to the state as it is more labour intensive and less capital intensive in nature, therefore, having scope for employment generation at a large scale. J&K handicraft products are worldwide famous for their attractive designs, functional utility and high quality craftsmanship. In the absence of large scale industries in the State, handicrafts remained a key economic activity from times immemorial.

ShawlsMattressWooven chairWalnut wood carvingPaper MachieMugs

Various handicraft products exported from J&K

Year Production(cr)

Exports (cr)

Growth rate %

Production Exports

2008-2009 1100 705.50 (-)31.87% (-)41.23%

2009-2010 1000 661.27 (-)9.09% (-)6.26%

2010-2011 1650.30 1004.37 65.03% 51.84%

2011-2012 1815.33 1643.37 10.00% 63.67%

2012-2013 1843.21 1538.28 1.53% (-) 6.39%

Production and exports of handicrafts industry – last five years

Table 1: Production and Exports of Handicrafts over 5 years

2008-09 2009-10 2010-11 2011-12 2012-130

200

400

600

800

1000

1200

1400

1600

1800

2000

11001000

1650.3

1815.33 1843.21

Figure 1 Production of Handicrafts in last 5 years

2008-09 2009-10 2010-11 2011-12 2012-130

200

400

600

800

1000

1200

1400

1600

1800

705.5661.270000000001

1004.1

1643.37

1538.28

Figure 2 Exports of Handicrafts in last 5 years

2008-09 2009-10 2010-11 2011-12 2012-130

200

400

600

800

1000

1200

1400

1600

1800

2000

1100

1000

1650.3

1815.33 1843.21

705.5661.270000000001

1004.1

1643.37

1538.28

Figure 3 : J&K Handicrafts sector over 5 years

Production

ExportsYears

Pro

du

cti

on

/Exp

ort

s (i

n C

rore

)

Competition from other countriesLimited access to marketsInadequate infrastructure and technologyLack of access to creditCompetition from machine made productsInadequate raw material input.

The Problems of Handicraft Sector

STRENGTH WEAKNESS

•Huge market potential

•Flexible production and design

•Cheap labour

•Huge employment

opportunities

•Foreign revenue generation

•Eco friendly

•Needs less investment

•Export oriented

•Underdeveloped infrastructure

•Lacks global exposure

•Lack of customer feedback system

•Less interest among youths

•Confined mostly to rural areas

•Still old techniques prevail

•Low wage structure in handicrafts

•Unorganized sector

Conclusion of the study: SWOT ANALYSIS

OPPORTUNITIES THREATS

•Huge demand in domestic as well as international markets

•Develops tourism industry of J&K

•Handicraft products are preferred by real estate players too add value in their businesses

•Design sensibility

•Stiff competition ahead

•Deficit balance between supply and demand of J&K handicrafts

•Better technological support and R&D facility in competing countries

•Translation of skill to next generation

•Huge inflating rates of raw material.

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