A detailed overview of the export of wooden handicraft from India.

1. Introduction

The wooden handicraft sector in India is a key segment of the broader handicrafts industry: it is labour-intensive, artisanal, rooted in traditional skills, and has significant export potential. According to the Export Promotion Council for Handicrafts (EPCH) and other sources, woodware (i.e., wood-based handicraft/wooden home décor items) compose a large share of the handicraft export basket. (India Brand Equity Foundation)
For example, data show that in FY 2021-22, woodware product exports from India were valued at ~ Rs 7,891 crore. (furnituredesignindia.com)
The wooden handicraft industry uses various types of timber, often carved and finished by artisan clusters, and exports to major global markets. (IWST)
Thus, this sector contributes to export earnings, artisan livelihoods, rural employment and value-addition in the craft economy.

2. Types and Categories

Wooden handicraft encompasses a wide variety of items, which can be grouped as follows:

• Decorative & gift items: Carved figurines, sculptures, statuettes, wall hangings, picture frames, photo frames, candle-holders, letter racks, incense holders, decorative boxes, coasters. (IWST)
• Utility/household items: Wooden trays, bowls, serving items, carved furniture (chairs, tables, wooden cabinet fronts), wooden toys. (IWST)
• Furniture or furniture components: Though strictly “handicraft” may lean more to smaller items, many exporters include carved wooden furniture and home-furnish décor pieces.
• Religious/ritual items: Wooden idols or carved wooden panels used for worship, temple décor, religious artefacts.
• Wood from different species & finishes: Items manufactured from woods like sheesham (Indian rosewood), mango, teak, teak-imported, oak, pine, MDF, reclaimed wood etc. (iwst.icfre.org)
• Regional cluster-specialities: For instance, wood-carving hubs such as Saharanpur (Uttar Pradesh) notable for carved furniture/wood-ware. (IWST)

In short, the category is broad — from small decorative pieces to furniture-scale items — all under the “wooden handicraft / woodware” umbrella.

3. HSN / HS Codes

Some of the relevant HS/HSN codes for wooden handicraft exports from India include:

• HSN Code 44219990 – “Other wood articles (including wooden handicraft)”. According to Volza data this code is used for many Indian wooden handicraft exports. (Volza)
• HSN Code 9505 – “Festive, carnival or other entertainment articles, including wooden toys” or similar. Some wooden handicraft items (especially toys) may fall under this. (Volza)
  It is important for exporters to correctly identify the HS code to ensure compliance with customs, export statistics, and destination country import classifications.

4. Export Destination Countries & Export Performance

Export Destinations

• Major buyers of Indian wooden handicraft and woodware products include the United States, Germany, Netherlands among others. For example, Volza data show for HSN 44219990 that most exports go to USA, Germany & Netherlands. (Volza)
• Many European countries and North America are key markets because of demand for artisanal, decorative, natural wood pieces.
• Some data also indicate that around 35 % of India’s wooden handicraft exports go to EU markets, and ~45% to the US (older data) in one study. (IWST)

Export Performance

• For the broad woodware/wood-based handicraft segment: In FY 2021-22, woodware exports were valued at Rs 7,891 crore. (furnituredesignindia.com)
• According to EPCH/IBEF data: total handicraft exports (including woodware) were valued at Rs 31,095 crore (US$ 3.8 billion) in FY 24. Woodwares remain a significant component. (India Brand Equity Foundation)
• Shipment data: According to Volza, for the period Nov 2023-Oct 2024, India made ~19,719 shipments of “Handicraft Wooden” items by 689 exporters to 1,388 buyers (growth –11% vs previous year). (Volza)
• For Jun 2024-May 2025: ~18,753 shipments by 556 exporters to 1,149 buyers (growth –7%). (Volza)
  These figures show that while volumes are large, growth has recently slowed/declined slightly, indicating market or supply-side headwinds.

5. Export Promotion Councils

• The primary body is the Export Promotion Council for Handicrafts (EPCH). (EPCH)
• EPCH is the apex organisation for Indian handicraft exporters (including wooden handicraft), conducts trade fairs (e.g., the Indian Handicrafts & Gifts Fair – IHGF), overseas buyer-seller meets, design/development support. (EPCH)
• The Ministry of Textiles (Government of India) through the Office of the Development Commissioner (Handicrafts) also supports policy, clusters, training.
  Thus, wooden handicraft exporters benefit from EPCH programmes and policy support via the handcrafts export ecosystem.

6. Export Restriction & Bottlenecks

Export Restrictions / Regulatory Bottlenecks

• While generally handicraft exports are liberal, the wooden handicraft sector faces regulatory issues regarding timber sourcing, above extraction and forest clearances, and increasingly traceability and sustainability norms in import markets (EU, US) regarding wood origin.
• Exporters must comply with export documentation, customs procedures, correct HS codes, packaging & labelling standards for international shipments.
• Some raw material constraints (e.g., logging bans, transportation restrictions) act as indirect bottlenecks. (iwst.icfre.org)

Bottlenecks / Challenges

• Variability in quality, design, finishing which may limit competitiveness.
• Infrastructure gaps (e.g., in finishing, packaging, testing) for many artisan units.
• Supply chain issues: secure, legal timber sources; rising cost of raw materials.
• A slow growth/decline in shipment growth (as shown in recent data) suggests competition, market saturation or supply-side challenges.
• Dependence on a few markets may make the sector vulnerable to demand/ tariff shocks.
• Digital adoption, direct access to buyers, brand building still limited in many artisan clusters.

7. Challenges

Building on the above, key challenges for the Indian wooden handicraft export sector include:

• Raw-material scarcity & sustainability: Constraints on good quality timber, need for traceability & compliance with import-country wood laws (e.g., EU Deforestation Regulation) are adding complexity.
• Design & product innovation: Global buyers increasingly seek innovative, lifestyle-oriented, contemporary design (not just traditional motifs). Many artisan units lag here. (altusexports.com)
• Quality control & finishing: Export market expectations around finishing, durability, packaging are high; meeting these demands can be costly for small producers.
• Export infrastructure & logistics: Carving, finishing, packing fragile wooden items, handling long shipments — many SMEs struggle with setting up robust systems.
• Market saturation & competition: Growing competition from other origins (China, Vietnam) plus need to differentiate “Made in India” wooden handicraft.
• Export growth slow-down: As earlier, shipment growth being negative in recent periods indicates structural issues.
• Artisan skill renewal & cluster health: Many clusters face ageing artisan workforce, migration of youth, lack of new entrants.
• Access to finance, digital marketplaces: Smaller producers often lack access to credit, digital outreach, e-commerce integration.

8. Government Initiatives

The government, through policy and promotional bodies, has taken several initiatives relevant to wooden handicraft exports:

• Through EPCH, trade fairs (IHGF), buyer-seller meets, virtual exhibitions and digital marketing support. (EPCH)
• Efforts to support handicraft clusters in training, design development, value-addition, packaging & marketing.
• The broader handicraft export ecosystem receives policy support; as per market research, rising global demand for handmade wooden décor items creates opportunity and the government encourages exporters to tap these. (IMARC Group)
• While not always wooden-specific, mandates around sustainable sourcing of timber and encouraging use of agro-forestry/tree outside forest (TOF) wood for artisan use are emerging. (iwst.icfre.org)

9. Way Forward

To enhance the export competitiveness and growth of Indian wooden handicraft, the following strategic actions are recommended:

1. Promote sustainable & traceable wood sourcing: Develop agro-forestry plantations, ensure legal timber supply, adopt certified wood to meet import-market requirements.
2. Focus on design innovation and value-addition: Encourage collaborations with designers, develop contemporary product lines (home décor, premium gifts), not just traditional.
3. Upgrade cluster infrastructure: Finishing units, shared facilities (polishing, lacquering), packaging labs, testing centres, warehousing.
4. Strengthen branding “Made in India – artisan wooden décor”: Create higher value segments, improve packaging/presentation, storytelling of craftsmanship.
5. Digital marketing & e-commerce enablement: Empower artisan exporters to reach global buyers via online B2B, B2C platforms, virtual trade fairs.
6. Expand market diversification: Beyond USA/EU, target emerging markets in Middle East, Latin America, Asia Pacific, tap online direct-to-consumer shipments.
7. Quality and standards compliance: Adopt international certifications, ensure packaging/finish/transport robustness to reduce returns and improve reputation.
8. Support skill development & youth entry: Train new artisans, upgrade skills in finishing, CAD design, e-commerce readiness, create artisan entrepreneur ecosystem.
9. Enhance export data & value tracking: Collect more granular value-data (not just shipments) for different wooden handicraft categories to identify high-margin segments and tailor policy.
10. Facilitate finance & export support for SMEs: Provide credit, export insurance, marketing assistance, cluster schemes tailored to wooden handicraft exporters.

10. Conclusion

The wooden handicraft export sector in India holds significant promise: it leverages India’s rich artisan heritage, abundant wood-carving clusters, and growing global demand for handmade, sustainable décor and gift items. With export earnings already sizeable and woodware being a leading segment among handicraft exports, the foundation is strong.

However, achieving higher growth and value capture will require addressing structural issues: sustainable raw-material supply, design and finishing capabilities, infrastructure support, improved export readiness, and global branding. By pursuing the strategic way-forward steps outlined above, India’s wooden handicraft exporters can strengthen their global footprint, move into premium value segments, and enhance sustainable livelihoods for artisans.