Kashmir Shawl Exports Soar Despite Uneven Recovery in Handicrafts Sector.

Exports of Kashmiri shawls surged to ₹588.23 crore during the financial year 2025-26, nearly doubling from ₹305.52 crore in the previous year. This remarkable increase makes shawls the Valley’s largest handicraft export category, significantly surpassing the export values of other traditional crafts, including carpets, which saw a steep decline. Official data from the Directorate of Handicrafts and Export Promotion highlights a shifting export profile in Kashmir, where shawls, particularly high-value Pashmina and premium handcrafted variants, have captured strong international demand from markets in Europe, the Gulf, and North America. This rise is partially attributed to improved marketing strategies, including participation in international exhibitions and enhanced logistics that helped fulfill backlog orders.

For the common citizen and the broader market, the growth in shawl exports could initially suggest optimism for the local economy, especially for artisans involved in shawl production. However, it is crucial to understand this development within the context of ongoing challenges in the handicrafts sector. While shawls have thrived, the concurrent decline in carpet exports—from ₹123.31 crore in 2025-26, down from ₹260.71 crore the previous year—and lower sales of other crafts, such as papier-mâché and walnut wood carving, underscore a precarious situation. Questions remain about the sustainability of this growth and whether it will translate into broader economic recovery for all sectors of handicraft production in Kashmir.

In light of these dynamics, there is an urgent need for a comprehensive strategy from both the Jammu and Kashmir and Central governments to revitalize the handicrafts sector more holistically. Stakeholders, including the Kashmir Economic Alliance, are advocating for robust policies aimed at restoring the competitiveness of all traditional crafts, thereby supporting the livelihoods of thousands of artisan families who are currently at risk. Long-term interventions could include enhancing skill development, improving the quality of products, and leveraging digital platforms for better market access. The focus must shift beyond immediate gains in shawl exports to a more resilient and diversified handicrafts industry that can withstand market fluctuations and truly benefit all artisans involved.

Source: The Hindu

(Expert Note: This report was independently prepared by the Wealthova Economy team.)