For setting up a warehouse-cum-showroom in Uruguay, Latin American region to maintain an inventory of Indian handicrafts, India is now going to invest Rs 200 crore. India has already made inroads into Latin America. India's act is an effort to increase handicraft exports to the country other than the traditional markets of US and EU.
To tap non-traditional markets like Uruguay, Chile, Panama and neighbouring countries, India is now prompting exports of its handicrafts including carpets.
Through this warehousing concept it is hoped that the exports to Latin America can increase ten times in the next three years and a proposal has been sent to the Union Ministry of Textiles. India's handicraft exports are expected to grow by about 50 per cent to $5 billion in current fiscal on account of growing demand in emerging markets such as China, Latin America and Africa.
In the April-June period, handcrafted items grew about 12.49 per cent to $665.24 million compared to the same period last fiscal. The Uruguay facility will be holding Rs. 1,000 crore worth inventory at any given time and would help in eliminating the six-month waiting process, the government officers concerned explained.