An Introduction to Export of Carpets & Other Textile Floor Coverings from India

Carpet Exports from India: An Overview

Carpet exports have been a significant part of India’s textile industry for centuries, with the country being one of the world’s largest producers and exporters of carpets. Indian carpets are highly regarded for their intricate designs, rich colors, and craftsmanship. The industry encompasses a wide range of handmade carpets, machine-made carpets, and modern floor coverings.

Introduction

India is one of the largest producers and exporters of carpets in the world, with a history of carpet weaving dating back to ancient times. The art of carpet weaving in India is a blend of tradition and innovation, and Indian carpets are known for their unique designs, durability, and affordability. The carpet industry is a key contributor to India’s export earnings, generating millions of dollars annually.

The major carpet-producing regions in India include:

• Kashmir: Famous for its high-quality hand-knotted woolen carpets.
• Uttar Pradesh (Agra and Bhadohi): Known for its hand-woven and tufted carpets.
• Rajasthan: Produces high-quality woolen and silk carpets.
• Haryana and Punjab: Known for their machine-made carpets.

Export Policy:

Export is Free subject to the condition 1 of this Chapter 57 of the Indian Tariff Act, 1975 as amended from time to time. Refer ‘Annexure A ‘for detailed information on this subject matter.

Export Trend

The trend of carpet exports from India has shown a consistent upward trajectory over the years, with a few fluctuations based on global economic conditions and demand shifts. In recent years, India’s share in the global carpet trade has been significant, with key markets being the U.S., the European Union, and Middle Eastern countries. Some important trends include:

1. Growth in Demand for Handmade Carpets: There is an increasing demand for handmade, eco-friendly, and sustainably produced carpets worldwide. This aligns with Indias strengths in traditional carpet weaving.
2. Shift Towards Premium Segments: There has been a growing demand for high-end, custom-designed carpets made from silk, wool, and other premium materials, especially in western markets.
3. Technological Advancements: While India’s handmade carpets dominate the global market, the increasing use of technology in machine-made carpets has also contributed to the growth of exports.
4. Rising Demand from Emerging Markets: Countries in Africa, Latin America, and Asia are becoming new buyers of Indian carpets, contributing to the diversification of export destinations.

Government Policies and Initiatives

The Indian government has implemented several policies and initiatives to support the growth of the carpet export industry:

1. Technology Upgradation Fund Scheme (TUFS): This initiative encourages modernization in the carpet industry, including investment in advanced machinery and production techniques, thus increasing productivity and competitiveness.
2. Export Promotion Capital Goods (EPCG) Scheme: This policy allows manufacturers to import capital goods at zero or reduced customs duty to boost exports, including in the carpet sector.
3. Market Access Initiative (MAI): This initiative promotes India’s carpets and other products in foreign markets by funding promotional activities, including trade fairs and marketing events.
4. Product Development and Design: The government has supported various design and skill development programs to help carpet manufacturers innovate and cater to international design trends.

Additionally, organizations like the Carpet Export Promotion Council (CEPC) work to promote Indian carpets globally, helping manufacturers connect with international buyers, organize trade shows, and improve export strategies.

Export Destinations

Indian carpets are exported to numerous countries worldwide. Some of the key destinations include:

1. United States: The U.S. is one of the largest importers of Indian carpets, especially high-end hand-knotted varieties. Indian carpets are popular for their intricate designs and superior craftsmanship.
2. European Union: Countries like Germany, the UK, and France are major importers. The demand is strong for both traditional and contemporary designs.
3. Middle East: This region has a long history of importing carpets, with countries like the UAE and Saudi Arabia being significant buyers. The demand here is primarily for high-quality woolen carpets.
4. Australia: The Australian market also imports a significant number of Indian carpets, especially those made from natural fibres like wool and silk.
5. Africa: Emerging markets in Africa, such as South Africa, have shown increasing demand for affordable, durable carpets.
6. Asia: Countries like Japan and China are expanding their imports of Indian carpets, with growing interest in both handmade and machine-made products.

In conclusion, India’s carpet export industry plays a critical role in its overall textile and handicraft sector. With government support, technological advancements, and an evolving global demand for quality and design, the future of Indian carpet exports looks promising.

Types of Carpets

Carpets come in various types, each designed with different materials, weaving techniques, and uses. Each type of carpet offers different advantages in terms of texture, durability, and suitability for various environments. Depending on the desired aesthetic, use case, and maintenance needs, selecting the right type of carpet can greatly enhance a space.

Heres an overview of the main types of carpets:

1. Woven Carpets

Technique: Woven carpets are made using traditional weaving methods. The yarns are woven into a backing fabric on a loom, creating a dense, durable carpet.

Subtypes:

• Wilton: Known for its intricate designs, Wilton carpets are woven using a Jacquard loom, allowing for multi-colored patterns and high durability.
• Axminster: Similar to Wilton, but Axminster carpets use a different weaving technique, producing carpets with a soft, luxurious feel and detailed patterns.
• Brussels: Often made from wool, these carpets are woven using the Brussels weave method, typically with a flat surface and excellent durability.

2. Tufted Carpets

Technique: Tufted carpets are made by inserting yarns into a backing fabric using a tufting machine. They are faster to produce than woven carpets and are widely used in both residential and commercial settings.

Subtypes:

• Cut Pile: The loops of yarn are cut, creating a soft, plush surface. These are the most common type of tufted carpets.
• Loop Pile: The yarns are left uncut, which results in a durable, textured surface.
• Cut and Loop Pile: A combination of both cut and uncut yarns, providing texture and pattern.

3. Knotted Carpets

Technique: This is one of the oldest methods of carpet making. Each knot is tied by hand around warp threads, resulting in highly durable and intricate designs. The knots can be classified as Persian knots or Turkish knots, depending on how the yarn is tied.

Common Materials: Wool, silk, and cotton.

Example: Persian rugs and Turkish rugs are famous for their craftsmanship and longevity.

4. Needlefelt Carpets

Technique: These carpets are produced by mechanically interlocking fibers with barbed needles. They are durable, and the process involves the fibers being punched through a backing material to form a dense surface.

Applications: Common in commercial spaces like offices, airports, and hotels because of their resilience.

5. Flatweave Carpets

Technique: Flatweave carpets are made by interlacing the yarns, with no pile (loops or cuts), creating a smooth, flat surface. They are lightweight and easy to maintain.

Common Materials: Wool, cotton, jute, or synthetic fibers.

Example: Kilims and dhurries are traditional flatweave carpets.

6. Braided Carpets

Technique: Braided carpets are made by braiding and sewing together strips of fabric, often creating a circular or oval design.

Materials: Typically made from wool, cotton, or jute.

Appearance: They have a rustic, textured look and are often used for smaller areas or as area rugs.

7. Shag Carpets

Technique: Shag carpets are characterized by their long, soft pile, giving them a fluffy, luxurious feel underfoot.

Materials: Usually made from synthetic fibers such as nylon, polyester, or acrylic.

Appearance: Shag carpets are known for their deep, long fibers and are often used in informal settings or to add a bold style statement.

8. Oriental and Persian Rugs

Technique: These are high-quality, hand-knotted carpets typically made from wool, silk, or cotton. They are famous for their intricate designs and patterns.

Examples:

• Persian Rugs: Renowned for their knotting technique, rich colors, and elaborate patterns.
• Turkish Rugs: Known for their geometric designs and vibrant colors.
• Chinese Rugs: Often depict floral patterns and symbols of prosperity.

9. Synthetic Carpets

Materials: Made from synthetic fibres such as nylon, polyester, polypropylene, or acrylic. These carpets are cost-effective and come in a wide range of styles and colors.

Durability: Generally, more stain-resistant and easier to clean than natural fibre carpets.

10. Commercial Carpets

Applications: Specifically designed for use in high-traffic commercial spaces like offices, hotels, and airports.

Subtypes:

• Carpet Tiles: Modular tiles that are easy to install and replace, often used in offices.
• Broadloom Carpets: Large, continuous rolls of carpet used in commercial areas.
• Cut Pile and Loop Pile Commercial Carpets: Durable and designed to handle heavy foot traffic.

11. Indoor-Outdoor Carpets

Materials: Typically made from synthetic materials like polypropylene, these carpets are designed to withstand the elements and can be used both indoors and outdoors.

Common Uses: Patios, balconies, and other outdoor living spaces.

12. Eco-Friendly Carpets

Materials: Made from sustainable materials like wool, bamboo, jute, or recycled fibres. These carpets are a great option for environmentally conscious consumers.

Benefits: Often biodegradable and made using eco-friendly production methods.

Export of Carpets and Other Textile Floor Covering – Regulatory and Procedural Framework:  The export of carpets and other textile floor coverings involves a detailed regulatory and procedural framework in India.  Below is a breakdown of the key aspects involved:

1. HSN Code for Carpets and Textile Floor Coverings

• The HSN code (Harmonized System of Nomenclature) is essential for classifying goods in international trade. Carpets and other textile floor coverings generally fall under HSN Code 5701 to 5705:
• 5701 – Carpets and other textile floor coverings, woven, not tufted or flocked.
• 5702 – Carpets and other textile floor coverings, tufted.
• 5703 – Mats, matting, and carpets of felt.
• 5704 – Carpet tiles.
• 5705 – Other carpets and textile floor coverings.

India’s Export Data

Chapter 57-CARPETS & OTHER TEXTILE FLOOR COVERINGS. [4digit level]

Department of Commerce (Export Import Data Bank)

Dated: 29/1/2025

Values in Rs. Lacs

2. Export Incentives for Carpets

India provides several export incentives to encourage the export of carpets and other textile floor coverings:

• RODTEP: This offers duty credit scrips to exporters based on a percentage of their FOB (Free on Board) value of exports. Refer Annexure B for RODTEP rates.
• Interest Equalization Scheme: Provides a subsidy on pre- and post-shipment export credit for specific sectors, including carpets.
• Duty Drawback Scheme: Exporters can claim a refund on duties paid on raw materials used in the production of exported carpets. Refer Annexure C for AIR Duty Drawback rates.
• MAI Scheme: http://cepc.co.in/wp-content/uploads/2021/08/Revised-MAI-Guildelines-dt-19th-July-2021_compressed-1.pdf

3. Carpet Export Promotion Council (CEPC)

• The Carpet Export Promotion Council (CEPC) is an important body that supports the export of carpets from India.
• CEPC organizes fairs, exhibitions, and provides market research to boost the export of Indian carpets.
• CEPC also works with the government to ensure compliance with international quality standards and helps exporters navigate the global market.

4. Carpet Export (Regulation) Act & Rules

• The Carpet Export Promotion Act and associated rules regulate the quality and standardization of carpets intended for export.
• These include the requirement for exporters to comply with certain certification processes and ensure the quality of products according to international standards.
• Exporters may also need to obtain specific certifications such as ISI (Indian Standards Institution) or Woolmark to ensure global acceptance.

5. Permissions and NOC

• Permissions: Exporters of carpets may need to obtain specific export licenses, especially if their goods fall under regulated categories. This may involve registering with the Directorate General of Foreign Trade (DGFT) and obtaining an Importer Exporter Code (IEC).
• NOC (No Objection Certificate): A No Objection Certificate from the relevant authorities may be required for certain carpet exports, especially when they involve specific raw materials like wool or when exporting to certain countries with strict import restrictions.

6. Conclusion

• Exporting carpets and textile floor coverings from India involves several important steps: correct HSN classification, obtaining necessary certifications, leveraging export incentives, complying with the Carpet Export Act, and working with bodies like CEPC to promote the product globally.
• Ensuring proper documentation and permissions will smoothen the process and reduce the risk of customs issues or disputes.

Geographical Indication (GI):

What is a Geographical Indication?

• It is an indication and signifies that the product is originated from a definite geographical territory.
• It is used to identify agricultural, natural or manufactured goods
• It signifies that the manufactured goods have been produced or processed or prepared in that particular territory.
• It should have a special quality or reputation or other characteristics. i.e. Darjeeling tea became the first GI tagged product in India, in 2004–2005.

Following Products of Indian Handmade Carpet Industry have been registered as Authorized GI Products

• Bhadohi carpet
• Kashmir Hand Knotted Carpet
• Mirzapur Dari
• Agra Dari Ghazipur Wall Hanging
• Navalgund Dari
• Warangal Dari

Advantages of becoming a GI Authorized User:

• It prevents unauthorized use of registered Geographical Indication goods by third parties.
• It’s creating a special status as Intellectual Property Right of the country after GI Registration.
• It will help boost exports and help project a brand image of the GI Products at an international platform.