India’s rich heritage of handicrafts has long been a cornerstone of its cultural identity and economic activity. The global demand for Indian handicrafts presents a significant opportunity for artisans and manufacturers to expand their reach. To support this growth, the Indian government has implemented various schemes and incentives aimed at promoting handicraft exports. Understanding and leveraging these programs can significantly enhance the competitiveness of Indian handicraft exporters in the global market.

Key Government Schemes and Incentives for Handicraft Exporters

1. Duty Drawback SchemeThe Duty Drawback Scheme allows exporters to claim refunds on customs duties paid for importing raw materials used in the production of exported handicrafts. This reduces the burden on manufacturers who rely on imported materials. By reimbursing these duties, the scheme effectively lowers production costs, enabling exporters to price their products more competitively in international markets.
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2. Remission of Duties and Taxes on Exported Products (RoDTEP)Replacing the earlier Merchandise Exports from India Scheme (MEIS), RoDTEP provides rebates on all embedded taxes, including central and state taxes that are not covered under the Goods and Services Tax (GST). This ensures that Indian handicraft products are free from the burden of hidden taxes, making them more competitively priced in the global market.
3. Interest Equalization Scheme (IES)The Interest Equalization Scheme offers a subsidy on interest rates for pre- and post-shipment rupee export credit. This reduces the cost of borrowing for exporters, making it easier for them to access the necessary funds to fulfill international orders. By lowering financing costs, the scheme enhances the competitiveness of Indian handicraft products abroad.
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4. Export Promotion Capital Goods (EPCG) SchemeThe EPCG scheme allows exporters to import capital goods at zero customs duty, provided they commit to fulfilling specific export obligations. This facilitates the modernization and technological upgrade of production facilities, enabling manufacturers to produce high-quality goods that meet international standards. By enhancing production capabilities, the scheme supports exporters in expanding their global footprint.
5. Market Access Initiative (MAI) SchemeThe MAI scheme provides financial assistance to exporters for activities such as market studies, participation in international trade fairs, and setting up showrooms and warehouses in foreign markets. This support helps handicraft exporters explore new markets and establish a presence in competitive international arenas. By facilitating market entry and expansion, the scheme contributes to the growth of handicraft exports.
6. Prime Minister’s Employment Generation Programme (PMEGP)Implemented by the Khadi and Village Industries Commission (KVIC), PMEGP provides financial assistance to individuals and groups to set up new micro-enterprises in the non-farm sector. This includes the handicraft sector, where artisans can avail of subsidies to establish or expand their production units, thereby increasing their capacity to cater to international markets.

Challenges in Availing These Benefits

While these schemes offer substantial support, navigating the application processes and compliance requirements can be challenging for many exporters. Common hurdles include:

• Complex Documentation: The need for extensive paperwork can be daunting, especially for small-scale artisans.
• Lack of Awareness: Many exporters are unaware of the full range of available schemes or the specific benefits they offer.
• Procedural Delays: Bureaucratic processes can lead to delays in approvals and disbursements, affecting business operations.

How Altus Exports Can Assist

Altus Exports is committed to empowering Indian handicraft manufacturers by facilitating their entry and expansion into global markets. Our comprehensive support services include:

• Expert Guidance: We provide detailed information on relevant government schemes and assist in identifying the most beneficial programs for your specific needs.
• Application Assistance: Our team helps in preparing and submitting applications, ensuring all documentation meets the required standards to increase the likelihood of approval.
• Compliance Support: We guide you through compliance requirements, helping you adhere to regulations and avoid potential pitfalls.
• Market Access: Leveraging our extensive network, we connect you with international buyers and provide insights into market trends to help you make informed decisions.

Partnering with Altus Exports

Collaborating with Altus Exports offers handicraft manufacturers a strategic advantage in the competitive global marketplace. By partnering with us, you can:

• Expand Your Reach: Access new markets and diversify your customer base.
• Enhance Product Quality: Benefit from our expertise in quality assurance to meet international standards.
• Optimize Costs: Utilize available government incentives effectively to reduce production and export costs.
• Focus on Craftsmanship: While we handle the complexities of export procedures and compliance, you can concentrate on what you do best—creating exquisite handicrafts.

To explore how Altus Exports can assist you in navigating government schemes and expanding your global presence, visit our Manufacturer Partnership page.