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US Slashes Carpet Tariffs, Boosting India's Hand-Knotted Rug Exports

The United States has significantly reduced import tariffs on Indian carpets, providing major relief to the export industry. The duty cut from 50% to 18% is expected to reverse the trend of US buyers sourcing cheaper carpets from countries like Pakistan and China. This move will lower costs for Indian exporters, making hand-knotted carpets more competitive in the crucial US market, which accounts for over 70% of India's carpet exports. The revival is anticipated to generate employment for thousands of weavers in Uttar Pradesh's carpet clusters and restore India's leadership position in the global market.

Key Points: US Cuts Tariffs on Indian Carpets, Major Relief for Exporters

  • US tariff cut from 50% to 18%
  • Revives India's $2B carpet export industry
  • Makes Indian carpets competitive vs China, Pakistan
  • Expected to generate jobs for weavers
  • Strengthens Bhadohi-Mirzapur-Varanasi cluster
2 min read

US tariff cut brings major relief to Indian carpet industry

US reduces import duty on Indian carpets from 50% to 18%, reviving exports from Bhadohi hub and boosting competitiveness against China, Pakistan.

"This decision has come at a time when global competition was extremely intense. High tariffs had become a major obstacle for us. - Imtiyaz Ahmed"

Bhadohi, Feb 3

A major boost has come for India's carpet industry from across the seas, as the United States has slashed import tariffs on Indian carpets from 50 pc to 18 pc. The decision has brought renewed optimism among exporters in UP's Bhadohi-India's carpet hub-and strengthened the country's position amid stiff competition from neighbouring nations in the global market.

India exports carpets worth nearly Rs 17,000 crore annually across global markets, with the United States alone accounting for over 70 pc of total exports. The high tariff imposed earlier resulted in Indian carpets becoming more expensive for the US buyers. As a result of this, they had started looking for cheaper options from countries such as Pakistan, Turkey, Afghanistan, and China.

According to experts, the reduction in tariff will be reversing this trend. This will be making Indian carpets more competitively priced. Buyer confidence in the US market will be restored.

Welcoming the move, Imtiyaz Ahmed, Director of the Carpet Export Promotion Council (CEPC) and a leading exporter from Bhadohi, described the decision as a "lifeline" for the industry.

"This decision has come at a time when global competition was extremely intense. High tariffs had become a major obstacle for us. With the duty now reduced to 18 pc, we will be able to lower costs and once again strengthen our presence in the global market with better quality products," Imtiyaz Ahmed said. Industry experts believe the tariff cut will significantly increase demand for Indian hand-knotted carpets in the US.

The high import duties had earlier driven American buyers to explore low-cost options from countries such as China and Pakistan. But now prices are expected to fall, say exporters. They anticipate fresh orders for weaving clusters in Bhadohi, Mirzapur, and Varanasi.

This revival, according to experts, will generate employment for thousands of weavers and artisans in Uttar Pradesh. Many of these workers had faced reduced work opportunities over the last few months.

With the tariff hurdle eased, exporters are confident that India's carpet industry-rooted in centuries-old craftsmanship-will regain momentum and reinforce its leadership in the international market.

- IANS

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Reader Comments

S
Sarah B
As someone who imports home decor items, this is very welcome. Indian carpets are unparalleled in quality and craftsmanship. The 50% tariff made them a hard sell for many American retailers. At 18%, they become a much more attractive option compared to mass-produced alternatives. Great move for trade relations.
R
Rohit P
Finally some good news for our traditional industries! This will save so many livelihoods in the carpet belt. But I hope the exporters don't just pocket the extra profit. They must ensure the weavers get fair wages and the price cut is passed on to boost demand. Jai Hind!
P
Priyanka N
A much-needed lifeline indeed. The competition from Pakistan and China was really hurting our artisans. Our government's diplomatic efforts seem to be paying off. Now is the time to also focus on branding and telling the story behind each hand-knotted carpet to justify the value.
M
Michael C
This is a smart economic decision by the US as well. You get superior quality products and support an ancient craft, while making them more affordable for consumers here. It's a win-win. Hope to see more such rational tariff adjustments that benefit both countries.
K
Kavya N
While this is positive, let's not forget this industry needs more than just tariff relief. We need better working conditions, skill development for the next generation, and protection from power loom imitations. This is a good first step, but a lot more needs to be done to secure its future.

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