China has entered the world market in a big way purely due to the economies of scale its exporters have preferred to indulge in while selling the goods. ``We stand nowhere in the world market compared to China,'' declares Dilip Baid, a leading exporter of handicrafts, who had won several awards for his role in boosting handicrafts exports.

Baid feels that handicrafts trading is a difficult field altogether and the government should understand the business in totality so that India's share in the world market does not shrink. Due to the better designing, Indian exporters have been able to stay in the world market -- from the price angle Chinahas beaten the exporters in a big way.

Apart from China, the world market has also attracted the Indoneasian goods and the exporters there also follow the same policy (as of China). The Chinese government has offered substantial subsidy to the exporters and the price being charged is ``political'' and not based on the products, says Baid. His views are shared by other exporters.

In India, there is hardly any support from the government in the export of wooden and ceramic items. ``We stand due to the innovative designing practices. The government offers no incentives as no free imports are allowed against exports. The only benefit is of income-tax. We are prepared to forgo the income-tax benefit if the labour laws are made more favourable,'' says Baid.

In the export of wooden items, India's share in the world market is hardly 2 per cent of the total Chinese exports. And the pity is that even the present business volume is declining.

The policy being pursued by the Chinese exporters looks somewhatamazing as the selling is done at fantastic levels -- the whole idea is not to allow other sellers in the market, says another exporter.

Baid feels elated in the field of designing as he goes to the extent of even boasting that none could beat him in the area. ``Some of my designs have even been copied by the Chinese businessmen,'' says he. In fact, he has brought this fact to the notice of the Export Promotion Council of Handicrafts of India.

``The matter is of a serious nature. But, interestingly no corrective steps have yet been taken. I spend a lot of money in designing the goods,'' says Baid.

India's business of wooden handicrafts is about Rs 400 crore in a year and about 500 exporters are in the field. However, the margins have been falling in the world market. The wooden carving is being done from outside and the final finishing is done by most of the exporters.

Baid doubts whether the target of the total exports of handicrafts of Rs 10,000 crore by the year 2002, as fixed by the ExportPromotion Council of Handicrafts will be realised. Right now, the exports are worth Rs 4,000 crore.

Due to the labour problems even some of the attractive orders have been turned down by the Indian exporters. In China, an exporter even employed 15,000 labourers without any problem, said Baid.

Carpets from Jaipur have also made a big dent in the world market. But, here again the growing competition from countries like Pakistan, China etc has reduced the margins to a large extent. It is only the attractive designing and the high level of manufacturing process that have sustained the carpet business.