The handicraft sector has something to cheer about finally.

The data released by Export Promotion Council for Handicraft (EPCH) point to an 18.18 per cent increase in handicraft exports during April-June 2011-12. Exports for the period stood at $555.22 million against $469.80 million in the same period last fiscal.

Mr Arvind Vadhera, the new Chairman of EPCH, outlined the roadmap to meet the export target of $2,700 million during the current fiscal. Last year's exports were at $2,301million.

Is the demand still low from the US and the European markets?

The demand is picking up but it is yet to reach the peak seen in 2008. The US and Europe account for around 60 per cent of the industry's overall exports. Our market diversification strategy has also paid off. Now we are also exploring markets like Far East, Middle East, CIS nations and Central Europe.

Sectoral performance review is being undertaken by Directorate-General of Foreign Trade (DGFT). Do you see any specific issue which needs a review?

We will be apprising DGFT of certain concerns. We have sought inclusion of 72 more products under the focus products list. Right now there are 42 products on the list. We have asked the duty credit scrip to be extended to 10 per cent from the current seven per cent.

EPCH has also been seeking the revival of deemed exports provision? How will it benefit the sector?

Deemed Exports mean those transactions in which the goods supplied do not leave the country and the supplier in India receives the payment for the goods. The provision of deemed exports existed between 1990 and 1993. It needs to be restored so that the sale to tourists from a registered handicraft dealer can be considered as exports. We believe restoring this would contribute about 15 per cent or Rs 4,000 crore to the annual handicraft export target.

Among your other demands include continuation of Generalised System of Preference (GSP). What exactly would it do for the sector?

The US has a GSP programme under which preferential duty free treatment is accorded to over 3,400 products from 131 countries. Recently, the US Congress extended authorisation of GSP beyond 31, December 2010 but adjourned without extending the GSP benefits. As a result, goods arriving in the US after January 1 this year will be subject to normal trade related duties. We are asking the Government to request the US government to reconsider its decision and extend GSP.

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