New Delhi, Aug 17 (PTI) India's handicraft export, impacted by global slowdown, is expected to take a hit in the current fiscal due to the devaluation of the Chinese currency, EPCH today said.
Export Promotion Council for Handicrafts (EPCH) said that Indian products would loose 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 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 previous year.
"The sector employs about 70 lakh people directly and indirectly. So it is a labour intensive sector. 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 per cent 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.