Indian Handmade Carpet Industry Seeks Urgent Government Relief Amid U.S. Tariff Escalation

Ziraat Times News Desk

NEW DELHI: A high-level delegation led by Member of Parliament Dr. Vinod Kumar Bind and the Carpet Export Promotion Council (CEPC) has urged the Government of India to intervene urgently to safeguard the country’s handmade carpet industry, which supports the livelihoods of more than 20 lakh weavers, including thousands in Jammu & Kashmir.

The delegation, comprising CEPC Chairman Kuldeep Raj Wattal, senior council members, and industry leaders, met Union Minister of Commerce & Industry Shri Piyush Goyal and Minister of State for Finance Shri Pankaj Chaudhary on Thursday. They highlighted the immediate crisis arising from steep tariff hikes imposed by the U.S., India’s largest carpet export market accounting for nearly 60% of shipments. The duty, raised to almost 50%, has already led to order cancellations, renegotiations, and fears of large-scale unemployment among artisans.

“The handmade carpet industry is facing a socio-economic emergency. More than 20 lakh artisans, a majority of them rural women, are directly dependent on this sector. If immediate relief is not provided, the heritage craft and rural livelihoods are at grave risk,” Dr. Bind told the ministers.

CEPC Chairman Wattal warned that delays in launching the new Export Promotion Mission Scheme and the MAI Scheme had hampered exporters’ ability to participate in international fairs, restricting market outreach. He called for urgent steps to diversify exports to Russia, China, and Latin America and suggested trade agreements to reduce import duties.

Among the key demands presented were:

• A special bailout package equivalent to 20–25% of annual U.S. export value.

• Reinstatement of Section 80HHC or a special tax exemption for handmade carpet exporters.

• Higher Duty Drawback and RoDTEP rates.

• Extension and enhancement of the Interest Equalisation Scheme with subvention raised to 5%.

• Relaxation of Section 43B(h) payment deadlines from 15/45 days to 180 days.

• Exemption on interest-free packing credit to ease liquidity stress.

Delegation members also raised concerns over unfair competition from machine-made carpets. They demanded a separate HSN code for handmade carpets and higher import duties on Turkish machine-made carpets, which currently enjoy easier access to the Indian market.

Responding to the appeal, Minister Piyush Goyal assured the delegation of “all possible support” and directed officials to expedite the creation of a separate HSN code and explore trade remedies, including higher import duties on machine-made carpets from Turkey. He also promised early resumption of the MAI Scheme to allow exporters to participate in global exhibitions and directed officials to work on identifying new markets for Indian carpets.

Minister of State for Finance Pankaj Chaudhary also pledged support, saying that financial concerns, including those linked to Section 43B(h) and the Interest Equalisation Scheme, would be carefully examined.

The delegation expressed gratitude to Dr. Vinod Kumar Bind for leading the initiative, noting his “strong support and leadership” in raising the sector’s voice at the highest levels.

With the industry valued at USD 2,097 million and employing millions in rural areas, stakeholders warned that without immediate policy action, India risks losing not only foreign exchange but also an irreplaceable heritage craft that empowers women and sustains rural economies.