The Indian carpet industry is urging the central government to provide a special bailout package to help exporters cope with the new 50% US tariffs. This tariff is expected to hit exporters in Bhadohi, a district that accounts for 60% of India’s total carpet exports. The All India Carpet Manufacturers Association (AICMA) and the Carpet Export Promotion Council (CEPC) have met with the Union Textiles Minister to discuss the issue.
The industry’s primary concern is the risk of losing American importers to countries with lower tariffs, such as China, Turkey, and Pakistan. Once importers switch suppliers, it is very difficult to win them back. In the last financial year, India’s carpet exports were valued at Rs 16,800 crore, with 60% of that going to the US. A local legislator from Bhadohi has also requested a 10% bailout package from the Uttar Pradesh state government to provide relief to exporters.