India–European Union Free Trade Agreement has augured well for Kashmir’s fledgling handicrafts sector. Called the mother of all deals, the India–EU FTA gives a decisive boost to labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles. Tariffs up to 10% on almost USD 33 billion of exports have been brought down to zero. Beyond enhancing competitiveness, it empowers workers, artisans, women, youth, and MSMEs, while integrating Indian businesses more deeply into global value chains and reinforcing India’s role as a key player and supplier in global trade. The India-EU FTA will give a significant boost to Kashmir’s handicrafts sector. Most of the handicrafts, including carpets and Pashmina, are exported to Europe. Earlier, exporters had to pay a 10 percent duty. Now it has been reduced to zero. It will push Kashmir exports, generate jobs, and increase income. What has brought cheers to Kashmir Inc is that the deal has ensured free market access for home décor, wooden crafts, and furniture. Lower duties up to 10.5% provides enhanced access, boosting the competitiveness of Indian wooden, bamboo, and handcrafted furniture. Earlier, Kashmiri exporters were facing trouble in exporting wooden items. Now, they will have easy access to EU markets. Official figures reveal that hand-made products worth ₹309.62 crore were exported to various overseas destinations in Q1FY26, up from ₹126.90 crore in the previous quarter. The second quarter, from July to September 2025, contributed over Rs 100 crore, bringing the H1FY26 total to Rs 410 crore. The Handicrafts and Handloom Department is targeting exports of over ₹1500 crore in the current fiscal. Last fiscal, craft products worth ₹733.59 crore were exported. Global conflicts and increasing tariffs have hit the Kashmir handicrafts sector badly. US President Donald Trump’s 50 percent tariff on Indian products has disturbed the Valley’s handicrafts sector. For artisans whose livelihoods depend on foreign buyers, especially in niche US markets, the news has come as a sharp blow. Coupled with global conflicts, including the Ukraine war, the sector has been left reeling. The India-EU FTA has rekindled hope for the sector. Jammu and Kashmir crafts are known world over for grace, glory, and grandeur. That is why 15 handicraft products from Kashmir have been granted a Geographical Indication tag. Papier-mâché, Kani Shawl, Sozni, Pashmina, Walnut Wood Carving, Khatamband, Hand Knotted Carpets, Kashmir Namda, Kashmir Gabba, Kashmir Willow Bat, Kashmir Tweed, Crewel, Kashmir Chain Stitch, Shikara, and Wagguv have all got GI indication. The Centre has played its part to help the exporters. It is now the turn of the Jammu and Kashmir government to pick up the threads. The government should incentivise handicrafts so that the artisans, who have left the craft due to low wages and less demand, return. The government should also announce a scheme to boost exports. The ball is now in the J&K government’s court.
India-EU FTA
