Introduction

India’s handicraft sector is a significant contributor to the economy, employing over 7 million artisans and generating $4 billion in exports annually. However, small and medium enterprises (MSMEs) in this industry often face financial challenges, limited market access, and high operational costs. To bridge this gap, the Export Promotion Council for Handicrafts (EPCH) provides financial support, subsidies, and trade fair assistance to boost exports and improve global competitiveness.

In this blog, we will explore various initiatives, schemes, and financial aids provided by EPCH for Indian handicraft exporters and how Altus Exports can help manufacturers expand their global footprint.

Financial Support & Subsidies for MSMEs in the Handicraft Sector

The Government of India, in collaboration with EPCH, offers several incentives and financial assistance programs to support MSMEs engaged in handicraft exports.

1. Market Development Assistance (MDA) Scheme

The MDA Scheme is designed to help MSMEs promote their products in international markets by offering subsidies for participation in trade fairs, buyer-seller meets, and overseas exhibitions.

Key Benefits:

✅ Reimbursement of up to 75% of air travel costs for MSME entrepreneurs participating in overseas fairs.
✅ Financial aid for stall rental, marketing materials, and exhibition expenses.
✅ Assistance of ₹2,00,000 per event for participation in international exhibitions.

2. Interest Equalization Scheme (IES) for Handicraft Exporters

Launched by the Reserve Bank of India (RBI), this scheme provides interest subvention to MSMEs in the handicraft sector.

Key Benefits:

✅ 3% interest subvention on pre- and post-shipment export credit.
✅ Reduced financial burden, making loans more affordable.
✅ Improved liquidity and working capital for exporters.

3. Credit Linked Capital Subsidy Scheme (CLCSS)

The CLCSS helps handicraft exporters modernize their production process by offering capital subsidies for technology upgrades.

Key Benefits:

✅ 15% subsidy on loan amounts up to ₹1 crore for MSME exporters.
✅ Encourages adoption of modern machinery and equipment.
✅ Enhances product quality and production efficiency.

4. Duty Drawback Scheme for Handicraft Exports

This scheme allows exporters to claim refunds on customs duties and taxes paid on imported raw materials used in handicrafts production.

Key Benefits:

✅ Reduction in manufacturing costs.
✅ Competitive pricing for exports.
✅ Increased profit margins for exporters.

5. Remission of Duties and Taxes on Exported Products (RoDTEP)

Under RoDTEP, exporters receive refunds on unreimbursed taxes and duties paid during production.

Key Benefits:

✅ Refunds of state and central taxes not covered under GST.
✅ Encourages higher exports and improved competitiveness.
✅ Helps maintain cost-effectiveness in the global market.

Trade Fair Support for Handicraft Exporters

1. EPCH’s International Trade Fairs & Exhibitions

EPCH organizes multiple trade fairs and B2B meetings to help exporters showcase their products globally. Some of the major events include:

✅ IHGF Delhi Fair – One