EPCH raises issue of US Reciprocal Tariffs on Handicrafts Sector in meeting with CM Yogi

Delhi/NCR – 27th August’2025 – A High level delegation led by Dr. Neeraj Khanna, Chairman, EPCH met Yogi Adityanath, Chief Minister Of Uttar Pradesh. The meeting also saw presence of Avdesh Agarwal, Chief Convener, EPCH and R. K. Verma, Executive Director, EPCH. The objective of meeting was to to discuss the impact of U.S. Reciprocal Tariffs on Indian exports and explore potential mitigation strategies informed Rajesh Rawat, Addl. Executive Director, EPCH.

Speaking on the current situation, Dr. Neeraj Khanna, Chairman-EPCH, said “the U.S. tariff hike has created unprecedented challenges for Indian handicraft exporters, threatening not only trade volumes but also the livelihoods of millions of artisans. This tariff shock has already led to an export decline, order cancellations and working capital crises for exporters, especially small and medium-sized enterprises, who form the backbone of handicraft industry. Despite these challenges, the handicraft sector remains firmly committed to the principle of ‘Nation First’ policy”.

Dr. Khanna further added, “Recognising Uttar Pradesh as India’s largest handicraft exporting state, contributing significantly of the country’s exports, Council has submitted a Vision Paper 2025–35 to the Chief Minister of Uttar Pradesh. The Vision Paper lays out strategies to double handicraft exports, strengthen globally renowned craft clusters such as Moradabad, Saharanpur, Bhadohi, Varanasi etc. and enhance artisans welfare. It also highlights opportunities under the forthcoming UP Export Promotion Policy 2025–30 and recommends policy interventions to build sustainable growth and competitiveness.”

Avdesh Agarwal, Chief Convener, EPCH shared that “Our handicraft exporters are under tremendous pressure, but this is also a time for collective resolve. While government continues its engaging with the US to secure favourable terms for our exporters, we must also expand our footprint in emerging and high-potential regions such as the European Union, the Middle East, East Asia and Latin America. Diversification will not only reduce our dependence on a single market but also open new growth opportunities for our exporters. The challenges of exporters of Moradabad, including issues related Municipal Corporation, House Tax, Pollution, GST, Labor etc. were also discussed in detail with the Chief Minister.” he further added.

R. K. Verma, Executive Director – EPCH said that “EPCH is working closely with the government to secure urgent fiscal and non-fiscal interventions to ensure our industry do not bear the brunt of global trade shifts. Interventions such as Cost Equalisation Incentive for U.S.-bound shipments, enhanced benefits under the Interest Equalization Scheme, Income Tax exemptions in line with the erstwhile Section 80HHC of the Income Tax Act, reintroduction of the Merchandise Exports from India Scheme (MEIS) with enhanced rates, enhanced RoDTEP and Duty Drawback rates for handicrafts items and the fast-tracking of promotional schemes under the Export Promotion Mission Scheme.”

The delegation also extended an invitation to the CM to inaugurate the upcoming 60th edition of IHGF Delhi Fair Autumn’2025 to be held from 13-17 October’25 at Greater Noida, U.P.

During the meeting the Minister gave a patient hearing to the issues raised.

Export Promotion Council for Handicrafts is a nodal agency for promotion of exports of handicrafts from the Country and create brand image of magic of the gifted hands of millions of artisans and craftspersons engaged in production of home, lifestyle, textiles, fashion jewellery & accessories products in different craft clusters of the Country. The overall Handicrafts exports during the year 2024-25 was Rs. 33,123 Crores (US $ 3,918 Million) and exports of handicrafts to the USA during the year 2024-25 was Rs. 12,814.73 Crores (US $ 1,518.18 Million). The exports of handicrafts from Uttar Pradesh during 2024-25 was Rs. 7122.49 crores informed by R. K. Verma, Executive Director, EPCH.