New Delhi: At a time when Chinese imports have flooded the Indian market, India is managing to push its handicraft there in much bigger numbers. Handicraft exports are likely to more than double from Rs 308 crore in FY15 to Rs 650 crore this year with China demanding more of metal-based craft and block printed items.

“China is taking a lot of interest in our handicrafts because this is a dying craft there and it is also facing higher labour costs,” said Rakesh Kumar, Executive Director, Export Promotion Council for Handicrafts. High cost of labour is making it difficult for local producers to meet the demand there.

Earlier, the Chinese would buy home and furnishing related products but now they are also buying products with high end embroidery and tie & dye work.

The silver lining comes in the wake of India’s burgeoning trade deficit with China. In 2015-16, India’s exports to China were $9 billion while the imports were a staggering $61.7 billion leaving a trade deficit of $52.7 billion.

Kumar said that more than 90 Chinese buyers placed orders worth Rs 200 crore at the recent IHGF which is Asia’s largest fair for handicrafts and gifts. The number of Chinese buyers was almost half in the previous fair.

While the US and EU have been the major destinations for Indian handicraft exports accounting for almost 65% of the total, China is among the other new markets that are keen on Indian handicrafts. Israel, Colombia, Uruguay and Chile too have evinced interest in sourcing handmade items from India.

Finding new markets has become essential for India as it faces intense competition from its South Asian neighbours. It competes with Malaysia and Vietnam in wooden handicraft and Korea in metal handicraft.

Bangladesh is a competitor in jute while it takes on Pakistan on stonework and the Philippines on items made of bamboo.

Source: The Economic Times