Kashmir’s handicraft industry, celebrated for its exquisite Pashmina shawls, handwoven carpets, and intricate papier-mache, is a vibrant tapestry of the region’s cultural soul and economic vitality. Sustaining over four lakh artisans, this sector is a lifeline for countless families. Yet, in 2025, it stands at a precipice. Exports plummeted to a three-year low of Rs 733 crore in 2024-25, imperilling livelihoods and threatening to unravel a centuries-old heritage.
The industry’s decline is driven by a confluence of challenges. Machine-made replicas, deceitfully marketed as authentic, flood global markets, undercutting artisans who pour months of skill and heart into a single piece. These counterfeits not only tarnish Kashmir’s hard-earned global reputation but also deepen unemployment, with artisans sounding the alarm on looming joblessness if the deluge of fakes persists. Punitive US tariffs have further throttled exports, leaving the Kashmir Chamber of Commerce grappling with unprecedented losses. Regional instability, outdated skillsets, and limited access to digital marketing compound the crisis, particularly for women artisans crafting intricate ‘Sozni’ embroidery and wheat-straw basketry. Their painstaking work, rooted in tradition, is devalued by mechanized alternatives, pushing families toward destitution in an unforgiving economy.
The government has signalled intent to stem the tide. Karkhandar Scheme, disbursing Rs 33.34 lakh in August 2025 to revive crafts like pottery in Anantnag, Budgam, and Baramulla, offers a glimmer of hope. Reducing GST from 12% to 5% and introducing authenticity testing are pragmatic steps to boost exports. Draft J&K Export Policy-2024 promises robust marketing support, while a July 2025 directive to purge machine-made goods from emporiums showed resolve. Yet, an August reversal permitting some fakes ignited outrage, fracturing trust among artisans. A September reaffirmation banning machine-made carpets is a step in the right direction, but policy vacillation must cease.
Reviving Kashmir’s handicraft industry demands decisive, consistent action. Enforcing stringent authenticity bans is non-negotiable—machine-made goods must not masquerade as handmade. Investing in Geographical Indication (GI) tags will fortify the global appeal of Kashmir’s crafts, ensuring their authenticity commands premium value. Promoting artisans through e-commerce platforms is essential to connect them with discerning global buyers, bridging the digital divide that isolates rural talent. Expanding the Karkhandar Scheme and skill development programs, with a focus on empowering women and artisans in remote districts like Poonch and Udhampur, will equip them to thrive in a globalized economy. These initiatives must be scaled to match the crisis’s magnitude, fostering elasticity and innovation.
Collaboration is the linchpin. Handicrafts Department, exporters, and international partners must forge a united front to navigate tariffs and restore Kashmir’s brand on the world stage. The government must shield them from unfair trade practices and arm them with modern tools to compete globally. Empowering artisans through cooperatives and microfinance access will enable them to scale their craft while preserving its authenticity. Failure to act risks obliterating a cultural legacy that is the heartbeat of Kashmir’s identity.