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20 Feb, 2012

China Seen as Big Market for Indian Handmade Carpets

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New Delhi, 17 Feb 2012 (Ministry of Commerce & Industry) – India and China have decided to promote export of Indian handmade carpets to China to diversify the trade basket and address the imbalance in the trade between the two countries. The matter was discussed during a meeting between Union Minister of Commerce, Industry and Textiles Mr Anand Sharma and the Governor of Qinghai Province of China Mr Luo Huining, here today. Indian handmade carpet industry is ranked No. 1 in the international market with a market share of around 35% of total world import of handmade carpets. Carpet City, Xining in Qinghai Province is the major centre from the point of view of Indian handmade darpet industry.

Mr  Sharma noted that “of the total export of handmade carpets amounting to US$653.86 million only US$4.83 million are exported to China which is way below the potential that the two big and growing economies have.” He suggested that the exhibitors from India showcasing their products in exhibitions in China be allowed duty free with a restricted value. He also raised issue of the need for lower duty on the import of Indian handmade carpets. “High duty on these carpets make them expensive for the rising consumer class of your country and does not help the local industry very much,” he added.

The Minister also suggested that in order to have effective distribution of handmade carpets into China a Bonded Warehouse facility be provided in the Carpet City, Xining, which will help the importers to cater to the domestic market. He suggested the formation of  a  joint working group to study the matter further.

The export target of the Indian handmade carpet industry, is US$800 million for the year 2011-12 . The industry is highly labour intensive and provides employment to over one million workers in the rural areas. However, immense potential for growth of production and exports still exists as the industry is spread over in number of States having abundant manpower and raw-material.