After making inroads into LatAm, India is now going to invest Rs 200 crore for setting up a warehouse-cum-showroom in the region to maintain an inventory of Indian handicrafts there.
The step is an effort to increase handicraft exports from the country other than the traditional markets of US and EU.
Handicraft exports are expected to grow by about 50% to $5 billion in current fiscal on account of growing demand in emerging markets such as China, Latin America and Africa.
In the April-June period, handcrafted items grew about 12.49% to $665.24 million compared to the same period last fiscal.
??Hoping that the exports to Latin America can increase ten times in next three years through this warehousing concept, a proposal has been sent to the ministry of textiles. The Uruguay facility will be holding R1,000 crore worth inventory at any given time and would help in eliminating the six-month waiting process,?? explained senior government officers.
Confirming this, MEA sources said, ??There has been growing demand for Indian handicraft from the region. Several of our envoys have sent their feedback and during a recent visit of a government delegation to the region, the possibility of setting up a warehouse-cum-showroom for handicraft and a facility for promoting Indian carpets in the region was topping the agenda. ??
Besides sharing expertise on cluster formations in the textiles sector, the location for setting up warehouses was also discussed during meetings in countries including Brazil, Argentina, Chile, and Uruguay. Speaking to FE, Rakesh Kumar Sharma, executive director, EPCH, ??The facility located in Uruguay would help exporters improve their reach to 24 Latin American countries, including Brazil, Argentina, Chile.??
India is now looking to tap non-traditional markets like Uruguay, Chile, Panama and neighbouring countries in the region by prompting exports of Indian handicraft and carpets.
??Uruguay has many Free Export Zones (with world class infra) and foreign exchange remittances are freely available with banks and government agencies professional and businesslike. Indian companies especially in pharma/textiles/light engineering sector can produce goods for Mercosur market (Buenos Aires is 24-hours road journey, Sao Paolo 36 hrs) and serve a market of most prosperous high-income consumers of South America ? Brazil, Argentina and Chile ? without hassles of custom clearance,?? said an Indian businessman doing business in the region for close to ten years.
??Later in the year various delegations will be visiting countries like Argentina, Chile and Colombia.
A 60-member delegation would be going to Buenos Aires for a crafts festival where there will be B2B and buyers and sellers meet; another 40-member delegation would be heading to Chile for a buyer-seller meet followed by a 45-member delegation visit to Colombia for the handicrafts meet ?Fair De Artisania?,?? sources said.