EVALUATING THE ECONOMIC PERFORMANCE AND CHALLENGES OF JAMMU AND KASHMIR'S HANDICRAFT SECTOR: AN OVERVIEW OF POST-2020 HANDICRAFT SECTOR DYNAMICS

The handicraft sector in Jammu and Kashmir holds a significant position in the regional economy. It is a labor-intensive industry and creates significant employment. This study analyzes the sector’s economic performance, sectoral composition, and modernization initiatives during the post-pandemic period (2020–2025). Data depicted that the industry currently employs 4.22 lakh artisans, ranking as the second-largest employer after agriculture. Export trends reveal high volatility but overall resilience; following a pandemic-induced downfall, export value peaked at ?1,162.29 crore in 2023–24. Although global geopolitical instability caused a contraction in 2024–25, early fiscal data for 2025–26 demonstrates a robust 243% year-on-year recovery. Sectoral analysis highlights a structural shift in output, with woolen shawls (41.06%) and carpets (27.30%) now dominating export shares. Furthermore, the study shows recent policy interventions, specifically the Geographical Indication (GI) certification of 17 indigenous products and the implementation of QR code-based traceability systems. These measures are identified as vital mechanisms for validating authenticity, combating counterfeiting, and enhancing global market reachability and competitiveness. The findings highlight the sector's economic viability and the efficacy of technological integration in sustaining traditional livelihoods and providing employment. Keywords: Handicrafts, Jammu and Kashmir, Employment, Economic Development, GI Certification, Post-Pandemic Recovery, Exports