A Delegation Led by Hon’ble MP Dr. Vinod Kumar Bind met Hon’ble Minister of Commerce & Industry and Hon’ble Minister of State for Finance to Present the grave issues faced by Indian Handmade Carpet Industry.

A high-level delegation led by Dr. Vinod Kumar Bind, Hon’ble Member of Parliament (Bhadohi), along with Shri Kuldeep Raj Wattal, Chairman, Carpet Export Promotion Council (CEPC), met Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry, Government of India, to highlight the crisis and urgent policy needs of the Indian handmade carpet industry.

The delegation also included Shri Raza Khan, President, AICMA, Shri Aslam Mehboob, Member COA, CEPC, Shri Piyush Kumar Baranwal, Member COA, CEPC, Shri Sanjay Gupta, Member COA, CEPC, Shri Mahavir Pratap Sharma, Member COA, CEPC, , and Shri Rajesh Sharma, Managing Director, Obeetee Pvt. Ltd.

The same delegation also met Shri Pankaj Chaudhary, Hon’ble Minister of State for Finance, Government of India, to represent the concerns and issues faced by the Indian handmade carpet industry.

Dr. Vinod Kumar Bind strongly represented the handmade carpet industry before the Union Ministers Shri Piyush Goyal, Hon’ble Minister of Commerce & Industry and Shri Pankaj Chaudhary, Hon’ble Minister of State for Finance Govt of India, emphasizing that more than 20 lakh weavers and artisans, a majority of them based in rural Uttar Pradesh, Rajasthan, Haryana, and J&K, are directly dependent on this sector for their livelihood. He underlined that safeguarding this heritage craft is not only a matter of trade but also of preserving rural employment, women empowerment, and India’s cultural identity. He briefed about the industry and stated following issues of the Industry be addressed to:

The Indian handmade carpet industry, valued at USD 2,097 million, provides employment to over 20 lakh artisans, many of them women, across states like Uttar Pradesh, Rajasthan, Haryana, and Jammu & Kashmir. As a labour-intensive, rural-based heritage sector, wages form 55–65% of production costs. The U.S. remains the largest market, accounting for nearly 60% of exports.

Immediate Crisis – U.S. Tariff Escalation

The U.S. has imposed an additional tariff, raising duty to nearly 50%.
Likely impacts include:
- Order cancellations and renegotiations.
- Weaver unemployment and distress migration from rural clusters.
- Permanent skill erosion and destabilisation of rural economies.
This is a socio-economic emergency, not merely a trade challenge.

Shri Kuldeep Raj Wattal, Chairman CEPC, underlined that while the U.S. tariff issue is a serious concern, the industry is further constrained by the delay in the launch of the new Export Promotion Mission Scheme, originally expected in April–May. As a result, the MAI Scheme, which has been supporting small and medium exporters in participating in international events, is also delayed. This has prevented exporters from showcasing their products in global markets—an impediment to international outreach and market diversification. The handmade carpet industry is also actively working towards market diversification in Russia China and Latin America, and he called upon the Government to explore Trade Agreements with these countries to ensure a balanced trade relationship by reducing import duties of these countries.

Urgent Relief Demands

Special Bailout Package – 20–25% of annual U.S. export value to safeguard jobs and sustain liquidity.
Income Tax Relief (Section 80HHC) – Reinstate Section 80HHC or create a special tax exemption scheme for handmade carpet exporters.
Increase in Duty Drawback & RoDTEP Rates – Current rates do not reflect actual input costs; need higher rates/caps.
Extension & Enhancement of Interest Equalisation Scheme (IES) – Extend by 3 years and raise subvention from 3% to 5%.
Exemption/Relaxation from Section 43B(h) – Current 15/45-day rule unworkable; request 180-day relaxation or sectoral exemption.
Exemption on Interest-Free Packing Credit – Full exemption sought to ease liquidity stress and sustain competitiveness.

The delegation underlined that the handmade carpet sector is one of the largest rural employment providers and contributes significantly to India’s foreign exchange earnings.

During the meeting, Shri Piyush Kumar Baranwal, Member COA, CEPC, raised the critical issue of separating machine-made carpets under HSN codes, highlighting that the handmade sector is under severe strain due to unfair competition.

Shri Sanjay Gupta highlighted that Turkey imposes a 75% import duty on Indian carpets, while machine-made carpets from Turkey are entering India at low duty. He urged the Government to impose higher import duties on Turkish machine-made carpets to safeguard Indian weavers.

Shri Mahavir Pratap Sharma expressed gratitude to the Government for ensuring uniformity in GST rates for carpets. Earlier, the industry faced hurdles due to a split structure of 5% and 12%, which has now been resolved, improving export competitiveness.

Shri Aslam Mehboob, highlighted that nearly 60% of India’s handmade carpet exported to the U.S. market. Given the steep tariff escalation and its severe impact on exporters, he strongly emphasized that a bailout package is absolutely necessary to safeguard the industry and protect the livelihoods of millions of weavers.

Shri Raza Khan, President, AICMA, stated that the handmade carpet industry is the lifeline of millions of weavers and should be treated at par with the agriculture sector. He emphasized that while drafting policies, the Government must recognize it as a special industry deserving of priority attention and tailored support, given its socio-economic importance and role in sustaining rural livelihoods.

The Hon’ble Minister of Commerce & Industry, Shri Piyush Goyal, assured the delegation that the Government is fully aware of the issue and is working actively on it. He immediately instructed senior officials from the Ministry of Commerce to pursue the creation of a separate HSN code for handmade carpets and also to consider increasing the import duty on machine-made carpets from Turkey to protect Indian Carpet Industry.

The Hon’ble Minister of Commerce & Industry, Shri Piyush Goyal, also acknowledged the sector’s contribution to India’s exports and rural employment and assured all possible support, including consideration of export promotion measures and enhanced assistance for participation in international markets.

The Hon’ble Minister of Commerce & Industry, Shri Piyush Goyal, instructed the concerned officials to take immediate steps to identify and develop new markets for the Indian handmade carpet industry. He further suggested that official delegations be sent to prospective countries to explore fresh opportunities and strengthen India’s global outreach.

The Hon’ble Minister of further assured that the long-awaited MAI Scheme will be resumed very soon, enabling exporters, particularly small and medium enterprises, to once again participate in global exhibitions and strengthen India’s presence in international markets.

The Hon’ble Minister of State for Finance, Shri Pankaj Chaudhary, assured the delegation that all issues pertaining to the Finance Department will be duly examined and necessary steps will be taken to support the industry. He reaffirmed the Government’s commitment to safeguarding this vital sector, which not only earns valuable foreign exchange but also sustains the livelihoods of more than 20 lakh weavers and artisans in rural India.

The delegation also raised critical financial concerns, including the challenges under Section 43B(h), where the 15/45-day payment condition is impractical for a long-gestation, export-oriented industry like handmade carpets, and sought a relaxation of up to 180 days or a sector-specific exemption which Hon’ble Minister acknowledged. They further requested the extension and enhancement of the Interest Equalisation Scheme (IES) by increasing the subvention rate from 3% to 5% and extending it for another three years to ease the cost of credit and improve liquidity. The Hon’ble Minister assured the delegation that these concerns will be carefully considered by the Ministry and that the Government will make its best efforts to implement suitable solutions in the interest of the industry.

On behalf of the industry, Chairman CEPC Shri Kuldeep Raj Wattal, Shri Raza Khan, President, AICMA and the delegation members expressed their special thanks to Dr. Vinod Kumar Bind, Hon’ble Member of Parliament, for his valuable time, strong support, and leadership in taken up the issues of the handmade carpet industry and to safeguard livelihoods of 20 lakh weavers.