Srinagar, Jul 5: The conflict in West Asia has dealt another blow to Kashmir’s export-oriented handicrafts sector, with official figures showing exports worth Rs 817.39 crore during 2025-26.
While shipments improved from Rs 733.59 crore recorded in 2024-25, they remain nearly 30 percent below the Rs 1162.29 crore achieved in 2023-24, underscoring the prolonged impact of geopolitical tensions on one of Jammu and Kashmir’s largest employment-generating industries.
The craft-wise export data compiled by the Directorate of Handicrafts, Export Promotion paints a mixed picture.
Although exports of Kashmiri shawls registered remarkable growth, most other traditional crafts, including carpets, papier-mâché and wood carving, witnessed a sharp decline as exporters grappled with disrupted shipping routes, soaring freight charges, delayed payments and subdued overseas demand.
According to the data, total handicraft exports stood at Rs 817.39 crore during 2025-26 compared with Rs 733.59 crore in 2024-25 and Rs 1162.29 crore in 2023-24.
Shawls and ‘rumals’ emerged as the standout performer, with exports rising to Rs 588.23 crore from Rs 305.52 crore a year earlier and Rs 477.24 crore in 2023-24.
In contrast, Kashmir’s flagship carpet industry continued to witness a steep slide. Carpet exports fell to Rs 123.31 crore in 2025-26 from Rs 260.71 crore in 2024-25 and Rs 317.33 crore in 2023-24, highlighting the severe stress faced by one of the Valley’s most recognised export products.
Papier-mâché exports plunged to just Rs 6.31 crore, down from Rs 27.61 crore in 2024-25 and Rs 38.44 crore two years earlier.
Chainstitch and crewel products recorded exports worth Rs 61.18 crore during 2025-26 against Rs 36.73 crore in the previous year. However, the segment remained far below the Rs 233.46 crore recorded in 2023-24.
Wood carving exports almost vanished from the export basket, declining from Rs 37.56 crore in 2024-25 and Rs 40.28 crore in 2023-24 to only Rs 0.38 crore during the year under review.
Exports under the “others” category also declined to Rs 37.98 crore from Rs 65.46 crore in the previous year.
Kashmir Chamber of Commerce and Industry (KCCI) President Javid Ahmad Tenga said the figures mirror the unprecedented disruption caused by the continuing conflict in West Asia, which has severely impacted Kashmir’s traditional export markets.
“The numbers tell the story. Despite a marginal improvement over last year, our exports remain significantly below the levels achieved before the present geopolitical crisis. The conflict in West Asia has affected almost every aspect of international trade —from shipping and insurance to freight costs and buyer confidence. For Kashmir, whose handicraft sector is heavily dependent on overseas markets, particularly the Gulf, the consequences have been severe,” Tenga said.
He said nearly 60 percent of Kashmir’s handicraft exports are destined for Gulf countries, making the region the single largest market for the Valley’s handmade products.
“When instability persists in the Gulf region, our exporters are among the first to feel its impact. Containers are delayed, shipping schedules are disrupted, freight rates have escalated sharply, and buyers have either postponed or reduced orders because of uncertainty. Exporters are also facing delayed payments, creating a serious liquidity crisis. Working capital has been locked up at a time when businesses need financial flexibility the most,” he said.
Tenga said the impact extends far beyond exporters and is directly affecting thousands of artisans, weavers, embroiderers, carpet makers, wood carvers and papiermachie craftsmen across Kashmir.
“Every cancelled export order means fewer days of work for artisans. Every delayed payment affects families whose livelihoods depend entirely on this sector. Handicrafts are not merely a business – they are the backbone of Kashmir’s traditional economy and a repository of centuries-old skills. If this trend continues, we risk losing both livelihoods and heritage,” he said.
Calling for urgent intervention by the Centre, Tenga urged the government to announce a comprehensive support package for handicraft exporters of Kashmir.
“We have requested the Government of India to launch aggressive international marketing campaigns to help exporters access newer markets. Diversification is essential because overdependence on one region makes the sector vulnerable to geopolitical shocks,” he said.
Tenga said exporters also need greater participation in international trade fairs, easier access to export finance and enhanced support under existing export promotion schemes.
“The resilience shown by the shawl sector is encouraging, but the steep decline in carpets, papier-mâché and wood carving is deeply worrying. These crafts define Kashmir’s global identity. Protecting them requires timely policy support, sustained market access and a long-term strategy to strengthen exports. The handicrafts sector deserves to be treated as a strategic economic priority,” he said.
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