India’s Carpet Industry Seeks Bailout Amid 50% US Tariff

New Delhi, Aug 30 (KNN) India’s traditional carpet industry is facing a major crisis after the United States imposed a 50 percent import tariff on Indian carpets.

This decision has disrupted trade flows and led to nearly 85 percent of U.S. orders being put on hold. The impact is particularly severe in Bhadohi and Mirzapur, the main hubs of handmade carpet exports.

The Indian handmade carpet industry contributes around Rs 16,000–Rs 16,800 crore annually through exports, with the U.S. accounting for nearly 60 percent of its market.

Bhadohi alone represents about 60 percent of India’s total carpet exports, making it especially vulnerable to the tariff shock. The sector provides livelihood to nearly 30 lakh people, most of them women weavers who work from their homes.

Exporters fear losing long-standing buyers to competitors like Pakistan, Turkey, China, and Afghanistan, whose carpets are taxed at much lower rates in the U.S.

This disparity in tariffs places Indian carpets at a clear disadvantage in global markets. As a result, exporters are witnessing large-scale order cancellations and rising uncertainty about future business prospects.

Industry bodies such as the All India Carpet Manufacturers’ Association (AICMA) and the Carpet Export Promotion Council (CEPC) have appealed to the central government for urgent intervention.

They have requested a special bailout package to support exporters during this difficult period. Bhadohi MLA Zahid Baig has also urged the Uttar Pradesh government to announce a 10 percent relief package to protect both exporters and weavers.

The crisis threatens not only India’s export revenues but also the livelihood of millions of artisans whose families depend on weaving.

Without immediate government assistance, the country risks losing both its global market share and the rich cultural heritage linked with handmade carpets.

(KNN Bureau)

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