Strong Export Growth in FY24
India’s carpet industry continues to dominate the global handmade carpet sector, with exports reaching US$ 1.39 billion in FY24. The country’s centuries-old tradition of carpet weaving, introduced in the 16th century, has evolved into a globally recognized industry known for its superior craftsmanship, sustainability, and vibrant designs. Handmade carpets from India remain in high demand, particularly for their eco-friendliness and intricate detailing, which provide employment to over 2 million artisans, predominantly in rural areas.
Production and Market Leadership
India holds the top global position in both the production and export of handmade carpets. The country produces a diverse range of carpet types, including Indo-Persian, silk, wool and silk blends, hand-tufted, Zeigler, and Kilim designs. These carpets are primarily manufactured in key states such as Uttar Pradesh, Rajasthan, Gujarat, Jammu & Kashmir, Punjab, Madhya Pradesh, Haryana, Andhra Pradesh, Telangana, Odisha, and the North-Eastern states.
With around 40,000 carpet-making companies (60,000 including other fashion-related sectors), India’s handmade carpet industry generates an annual revenue of approximately US$ 64 billion, with nearly 85-90% of production dedicated to exports. Notably, India accounts for about 40% of the global handmade carpet exports. In June 2024 alone, the country’s carpet exports stood at US$ 121.44 million, surpassing the US$ 109.76 million recorded in June 2023. Since 2017-18, Indian carpet exports have maintained a compound annual growth rate (CAGR) of 7%.
Key Export Destinations
India exports carpets to over 70 countries worldwide, with the United States, Germany, the United Kingdom, Australia, and the Netherlands being the primary markets. The USA remains India’s largest importer, accounting for US$ 214.84 million in handmade carpet imports in 2023-24 (until June). Other significant importers include Germany (US$ 23 million) and the UK (US$ 17 million) in FY25 (until June). In 2022-23, Germany imported US$ 93.49 million, while the UK imported US$ 83.75 million worth of handmade carpets.
The diversification of China’s carpet industry from handmade to machine-made carpets has opened new opportunities for India’s handmade carpet sector. The Carpet Export Promotion Council (CEPC) has actively promoted India’s carpet industry by establishing a warehouse in China to facilitate easier exports. Other promising markets include Brazil, Chile, Argentina, Norway, Sweden, Australia, and New Zealand.
Government Support and Initiatives
To boost the handmade carpet industry, the Indian government has introduced several initiatives, including trade events, skill development programs, and financial incentives. The Ministry of Textiles collaborates with the Ministry of Skill Development and Entrepreneurship to train artisans and handloom weavers. Various subsidies and loans are also provided to support small-scale carpet producers.
One of the key incentives is the Rebate of State and Central Taxes and Levies (RoSCTL) scheme, extended until March 31, 2024, to enhance the competitiveness of India’s textile sector in the international market. Additionally, the government has focused on digital marketing and virtual trade shows to expand global outreach.
In October 2023, the government hosted Asia’s largest India Carpet Expo (ICE) 2023, attracting 350 overseas buyers from 45 countries. Other skill development programs include:
- Recognition of Prior Learning (RPL), benefiting 74,891 artisans.
- 35 handicraft technical training centers, training 2,476 artisans.
- 16 design and specialized training centers, training 640 artisans.
With continued government support, expanding global markets, and sustained artisan engagement, India’s handmade carpet industry is set to maintain its dominance and further strengthen its position as the world’s leading exporter of high-quality handmade carpets.
