Indian Carpet Exports Face Steep 9% Decline Amid US Market Challenges
While much attention has been directed toward shrimp and textile sectors, India's traditional carpet and rug industry has endured a particularly difficult year, with exports slipping nearly 9% to $735 million between April and November. This decline comes despite expectations that tariff reductions would provide a much-needed boost to this highly labor-intensive sector.
Overall Export Performance and Market Dynamics
During the first eight months of the fiscal year, overall exports have decreased by 4% to $1.3 billion. The sheer dominance of the American market has proven particularly disruptive for Indian exporters, overshadowing positive developments in other regions.
While exports to the United Kingdom and United Arab Emirates have shown growth, all other international markets combined still account for less volume than what Indian companies ship to the United States alone. This heavy reliance on the US market has left the industry vulnerable to fluctuations in American demand and trade policies.
Geographic Concentration and Competitive Landscape
Indian carpet manufacturing remains concentrated in traditional centers around Varanasi and in Jammu & Kashmir, where skilled artisans have maintained this craft for generations. Despite this heritage, the industry faces stiff international competition.
According to data from the World Integrated Trade Solutions website, China stands as the world's largest player in carpets and floor coverings. However, India's primary competitor in this space is Türkiye, which has enjoyed a significant tariff advantage in recent months.
US Market Volatility and Tariff Impacts
Commerce department data reveals concerning trends in the crucial American market. India's exports to the United States experienced a dramatic 32% decline in September, followed by a 22% drop in October and a further 9% decrease in November.
The situation has been exacerbated by recent trade policies, particularly the United States' imposition of a hefty 50% tariff that has created challenging conditions for Indian exporters while benefiting competitors like Türkiye.
This combination of market concentration, international competition, and tariff pressures has created a perfect storm for India's carpet industry, highlighting the need for diversification and strategic adaptation in global markets.
