Handicraft exports grew about 12 per cent year-on-year to USD 205 million in May this year despite demand slowdown in western markets like Europe. In May 2010, these exports stood at USD 183 million, according to the data provided by the Export Promotion Council for Handicrafts, EPCH. EPCH Executive Director Rakesh Kumar said there is an increase in demand from new markets like China, the Middle-East and Latin America. He said, the demand, however, is still weak in the US and European markets that are witnessing sluggish economic growth.The US and Europe together account for over 60 per cent of the country's total handicraft exports. The council expects handicraft exports to touch USD 3.2 billion in the current fiscal compared to USD 2.75 billion in the previous year.