Kashmir’s handicraft sector is facing one of its most testing moments, and the latest export data captures the scale of the challenge. At Rs 817.39 crore in 2025–26, exports show only a modest rise from the previous year, but remain far below the Rs 1,162 crore recorded before the West Asia conflict disrupted trade flows. What emerges is not just a story of fluctuating numbers, but of an industry struggling to withstand external shocks while carrying the weight of tradition and livelihoods.
Shawl trade has managed to grow impressively, yet carpets, papier-mache, wood carving and other crafts have suffered sharp declines. Carpets, once the flagship of Kashmir’s exports, have lost more than half their value in two years. Papier-mache has shrunk to a fraction of its earlier worth, and wood carving has almost disappeared from the export basket. These figures reflect a sector under severe strain, where resilience in one craft cannot mask the collapse in others.
The consequences extend far beyond exporters as thousands of artisans, weavers, embroiderers and craftsmen are directly affected. Each cancelled order reduces workdays, each delayed payment strains families dependent on this trade. Handicrafts are not merely an economic activity; they are a foundation of Kashmir’s traditional economy and a link to its cultural identity. Their decline is both a livelihood emergency and a cultural warning.
The reliance on Gulf markets has exposed a structural weakness; when instability grips the region, Kashmir’s exports are among the first casualties. Containers are delayed, freight costs rise, and buyers hesitate. This dependence highlights the urgent need for diversification into new markets and stronger international promotion. Without such steps, the sector will remain vulnerable to external shocks.
Liquidity challenges add to the strain as the exporters face delayed payments and locked-up working capital, leaving them unable to support artisans adequately. The shrinking diversity of Kashmir’s export portfolio is another concern. When one product dominates, the sector becomes more vulnerable to market fluctuations. A balanced basket of carpets, shawls, papier-mâché, wood carving and embroidery ensures stability, but the current imbalance threatens that equilibrium.
However, with better access to finance, stronger marketing, and wider participation in international trade fairs, other crafts too could find new buyers and regain lost ground. The challenge is to ensure that this opportunity is not missed.
The sector’s difficulties also raise questions about long-term sustainability. If younger generations see little economic security in traditional crafts, they may abandon them altogether. That would not only weaken the export basket but also break the chain of knowledge passed down through families for centuries.
Another dimension of the crisis is the risk of losing Kashmir’s global identity. Carpets, papier-mâché and wood carving are not just products; they are cultural ambassadors. Their decline diminishes the Valley’s presence in international markets and weakens its recognition as a hub of handmade excellence.
Equally pressing is the need to strengthen the position of artisans within the value chain. Many continue to work without security or fair wages, even as their skills remain the backbone of the sector. Ensuring their survival is essential if handicrafts are to remain viable in the long run.
Kashmir’s handicrafts are at a turning point as reviving them requires sustained effort, broader market access and recognition of the sector as a priority. Every artisan’s loom, brush or chisel is part of a larger narrative. If those threads break, the loss will not be measured only in revenue but in the fading of a heritage that has endured for generations.