Indian handicraft sector is divided in to the two parts like - export oriented and domestic specific. The focus of the central government is to increase the handicraft availability in the national market and international as well. With this the trends suggest that the import level from the chinese market is still increasing.
There is no sufficient data, which is necessary to tell that in how much quantity the export level of India has been effected. Indian handicrafts has been more in demand than the machinery made chinese products in domestic as well international market. But due to lack of data, it would be insufficient to say that the chinese export level has infected the Indian handicraft industry.
There are many products which are increased in level of export from China to India like -
glass and crockeries
Trends suggest that the overall market share of handicraft industry of India is majorly hold by China. The biggest quality of the Chinese Handicraft Industry is that they have crossed the supreme level of quality and reached to an optimum global standard. They are highly price competitive as well. It seems that in next coming top 10 years China will still remain on the peak of handicraft industry.