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UP handicraft sector in trouble due to Eurozone crisis

12
Jun '10
It is believed that the budding sovereign crisis in Eurozone would substantially influence the handicraft exports from Uttar Pradesh (UP).

Around 35 percent of the exports from India are made to European countries, with UP alone sourcing 40 percent of the composite handicraft exports from India. Also, if we add in carpets to this exports, then the share of UP in the overall exports, inclusive of carpet belts from Bhadohi and Varanasi, comes to almost 60 percent.

Where the handicraft industry is still recovering from the global economic crisis with difficulties, the primary evaluation data reveal that, the impact of Eurozone crisis on the handicraft exports from UP could most likely be around 10 percent.

But few industry experts even opined that, the adversities could lower the handicraft exports by 25 percent, but the exact idea regarding the situation could be derived only by July-August, as the European customers clear off payments committed by them.

With Europe as the key destination for export centres of UP like Saharanpur, Moradabad, Kanpur, Bhadohi, Noida and Aligarh, they would be worst affected by the crisis. European markets have proved to be a support for the sector at the point when US markets were tumbling, but now, as the situations change, both the markets are in a fix and it is a double trouble for the exporters.

The recently released data reveal that, owing to the global economic meltdown, there has been a fall in the handicraft exports from country, from Rs 140 billion in 2007-08, it is now hardly registers Rs 81.8 billion.

However, few say that subsequent to the upshot of US sub-prime crisis the exporters now know well as to how to tackle such adversities. The exporters are now considering Asian, Arabian and Latin American markets for exporting their goods, so as to shield themselves against the regional economic crisis hitting a region.

Fibre2Fashion News Desk - India


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