The United States’ decision to impose a 50 percent tariff on Indian imports has thrown the country’s carpet industry into an unprecedented crisis. Exporters and industry representatives warn that if the situation persists, hundreds of thousands of workers could lose their jobs and India risks losing its market share in the US.
Exporters in Bhadohi, widely known as the “Carpet Capital of India,” say that since the new tariffs were announced in August, virtually no consignments have been shipped to the US. America is the largest buyer of India’s handmade and custom rugs, accounting for more than 60 percent of the industry’s total revenue.
According to Surya Mani Tiwari, a veteran carpet exporter, this is the worst downturn he has seen in fifty years. He warned that if no resolution is reached within the next two months, the industry could face collapse.
Data from the Carpet Export Promotion Council (CEPC) shows that the sector, with an annual turnover of nearly $1.8 billion, employs more than 2.5 million people across India. In Bhadohi alone, around 1,200 exporters are active, supporting the livelihoods of about 1.4 million workers, including thousands of women in rural areas.
The impact on employment has been immediate. The All India Carpet Manufacturers Association (AICMA) reports that at least 100,000 people have already lost their jobs, and the number could rise to 700,000 within two months if the situation does not improve. Falling wages and the migration of workers to other states are among the most pressing consequences
Industry experts also caution that competitors such as Turkey and Pakistan, which face much lower US tariffs, are moving quickly to fill the gap in the American market. This could significantly weaken India’s traditional position in global carpet exports.
Exporters have urged both the Indian and US governments to find solutions, whether by reducing tariffs or negotiating bilateral agreements. They stress that the continuation of the current situation will not only devastate carpet producers and weavers but also deliver a serious blow to local economies and India’s overall export performance.
