Srinagar, July 13 -- 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 year...