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Carpet Industry

Carpet Industry and Export In India

Carpet weaving in India was introduced in the 16th century, and Indian carpets have a huge demand in the international markets. India’s heritage of handmade carpets has been recognized worldwide with a significant share in global exports for its eco-friendliness, subtle elegance, excellent designs, superior quality, vibrant color craftsmanship with a human touch. Indian handmade carpet industry is highly labor-intensive and provides employment to over 20 Lakhs workers/ artisans, especially women directly or indirectly in the rural areas.
Currently, India is ranked first in handmade carpet and other floor coverings production and exports in terms of value and volume. The country produces a wide range of handmade carpets and other floor coverings in low, medium, and high quality. Categories of Indian handwoven carpets include Indo Persian, silk, wool and silk, hand-tufted, Zeigler, and Kilim.
The major carpet-producing states in India are Jammu & Kashmir, Himachal Pradesh, Haryana, Punjab, Madhya Pradesh, Rajasthan, Gujarat, Kerala, Andhra Pradesh, Telangana, Odisha, Uttar Pradesh, and the North-Eastern states. Seven key products in the carpet and durries sector registered in a geographical indication (GI) under Intellectual property rights (IPR) are Handmade Carpet of Bhadohi, Mirzapur Handmade Dhurrie, Kashmir Handmade Carpet, Navalgund Durrie, Ghazipur Wall hanging, Wrangle Durries and Agra Durrie.
India exports silk, coir, jute, and handloom carpets and floor coverings. The country exports about 85-90% of the total carpets it produces and is the largest exporter in the world. India is responsible for around 40% of worldwide export of handmade carpets. India’s handmade carpets & other floor coverings export recorded a growth of 19.5% to reach US$ 2.23 billion in 2021-22. Since 2017-18, carpet exports from India have witnessed a CAGR of 7%. In the month of March 2022, the carpet export of the country was US$ 155 million, higher than US$ 130.56 million in February 2022. This strong growth in exports provides extra and alternate occupations to artisans/weavers who belong to the weaker section of society, including farmers and others at their homes.
Among the various types of carpets exported from India, handmade carpets like woolen, rugs, druggets, durries, cotton carpets, etc. account for the highest share of exports. From April 2022-September 2022, India’s carpet exports stood at US$ 710 million. In 2021-22, India exported US$ 1.51 billion worth of these handmade carpets recording a growth of 18.8%. This was followed by US$ 168.67 million worth of jute carpets & floor coverings exports accounting for 7.8% of the total exports. Apart from these, India also exported handloom carpets & floor coverings, coir carpets & floor coverings, and silk carpets worth US$ 125.06 million, US$ 113.15 million, and US$ 10.62 million, respectively.
India exports carpets to more than 70 countries in the world. The USA, Germany, the UK, Australia, the UAE, France, Sweden, Netherlands, and Italy are among the largest importers from India. The USA is the biggest importer of carpets and floor coverings from India, accounting for 57% of India’s exports. Between April 2021-Mar 2022, India exported US$ 1281.29 million worth of handmade carpets and other floor coverings to the USA, growing from US$ US$ 1063.37 million recorded in the previous year. Germany and the UK are among the top 3 importers, with handmade carpet imports from India valued at US$ 116.64 million and US$ 110.31 million in 2021-22, respectively.
China’s carpet industry diversified its carpet production from handmade to machine made hence creating a good opportunity for handmade carpet exporters from India. The Carpet Export Promotion Council’s (CEPC) initiative to set up a warehouse in China to facilitate member exporters is a positive step in the right direction. Countries like Brazil, Chile, Argentina, Norway, Sweden, Australia & New Zealand have good potential to grow India’s carpet exports.
The USA is one of the traditional export markets for India’s handmade carpets and floor coverings. The exports to the USA crossed the US$ 1.0 billion mark for the first time in 2020-21 but still have significant growth potential.
India regularly arranges domestic as well as international trade events and expositions to promote handmade carpets and to provide a platform for exporters in the country. To encourage the handloom weaver and artisans, the Government of India provides several facilities and subsidies. The Ministry of Textiles of India has signed a memorandum of understanding (MOU) with the Ministry of Skill Development and Entrepreneurship for the skill development of handloom weavers. In addition to this, subsidized loan and subsidy for handloom setup is also provided. Additionally, the scheme of Rebate of State and central Taxes and Levies (RoSCTL), effective from March 2019, has been continued till 31st March 2024, for exports of apparel/garments and made-ups to make the textile sector competitive in the international market.
The government has taken several steps to promote the export of handicrafts. In addition to several standard International Marketing events, virtual marketing events have also been organized to provide an international marketing platform to the artisans. The government has also undertaken several initiatives on skill development and marketing of the Indian Handmade Carpet Industry. By conducting a skill development program under-recognition of prior learning (RPL) for 74,891 artisans, 35 handicrafts technical training centers to train 2476 artisans, and 16 design & specialized training centers to train 640 artisans. The Government of India held Asia's largest India carpet show this was the India Carpet Expo (ICE) 2022 in March 2022, with 257 overseas buyers from 48 nations.
Carpet Export Promotion Council india (CEPC)
CEPC was formed in 1982 by the Ministry of Textiles. The objective of the council is to promote handmade carpets, rugs and other floor coverings. Some of the activities taken up by the CEPC are fairs and exhibitions as a part of Market Access Initiative (MAI), liaising with the Government, protecting the interest of the exporters in the global markets, conducting trade meets and surveys, conducting training and information dissemination.

Source: India Brand Equity Foundation

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