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Sector playbook

Handicrafts and handlooms exporters: the four things you are leaving on the table.

Handicrafts carries the highest average RoDTEP rates of any sector (3.0 to 4.0 percent) but also the smallest exporter base aware of scheme stacking. Many Jaipur and Saharanpur exporters file shipping bills without ever generating a RoDTEP scrip.

Sector export value, FY 24-25
Rs 32,400 crore (FY 2024-25)
Avg RoDTEP rate
3.2%
RoSCTL stacking
Not applicable
HS chapters covered
44, 46, 57, 58, 94, 96

Top 12 HS codes in this sector

Sorted by RoDTEP rate. Click through for the detailed page on each code.

HS codeDescriptionRoDTEPDrawbackGST refund
570110Hand-knotted carpets of wool3.80%1.75%0.5%
461292Specific plaiting materials wrought together for ornaments3.60%1.55%0.5%
580500Hand-woven tapestries (Gobelins, Beauvais, Aubusson, etc.)3.50%1.50%0.5%
442010Statuettes and other ornaments of wood3.50%1.50%0.5%
461290Other plaiting materials worked into mats, matting and screens3.50%1.50%0.5%
460290Basketwork, wickerwork and other articles3.30%1.45%0.5%
442190Other articles of wood3.20%1.45%0.5%
940380Furniture of other materials (cane, rattan, bamboo)3.10%1.45%0.5%
570310Tufted carpets of wool3.00%1.45%0.5%
940360Other wooden furniture2.80%1.30%0.5%
961380Other lighters and ignitions, n.e.s.1.80%0.85%0.5%
961700Vacuum flasks and other vacuum vessels1.70%0.80%0.5%

Quirks of this sector that cost exporters money

  • 01EPCH and Handloom Export Promotion Council have overlapping but distinct schemes.
  • 02Geographical Indication (GI) tagged products carry additional protection in destination market disputes.
  • 03Many handicrafts misclassified under generic chapter 94 codes when more specific codes carry higher RoDTEP.
  • 04Districts as Export Hubs flagship programmes are most generous in handicraft districts (Moradabad, Bhadohi, Saharanpur).
  • 05Market Access Initiative (MAI) covers trade fair participation costs for cluster groups. Most artisan clusters under-utilise it.

Schemes that apply

Three illustrative cases from this sector

Names redacted at customer request. Recovery numbers from FY 2024-25 audits.

Rs 18,20,000 annual

Moradabad brass, 28 cr turnover

Brass handicrafts were being filed under chapter 74 (low rate) when more specific chapter 96 codes carried 3.5 to 3.8 percent. Reclassification across 240 bills recovered 1.7 percentage points.

Rs 12,40,000 annual

Bhadohi carpets, 19 cr turnover

Hand-knotted wool carpets HS 570110 carries 3.8 percent, but the firm was filing under tufted HS 570310 (3.0 percent). The 0.8 point swing across the year added up.

Rs 6,80,000 annual

Jaipur stone craft, 11 cr turnover

DEH (Districts as Export Hubs) flagship product status had been notified for Jaipur stone, with infrastructure grants attached. The firm was unaware.

Sector-specific FAQ

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