The 50% tariffs imposed by former U.S. President Donald Trump on Indian imports have had a profound impact on Indian carpet exports, affecting not only the textile and apparel industries but also significantly impacting the nation’s carpet exporters.
Reports indicate that the United States represents approximately 60% of India’s carpet export market. In FY25, out of the total $1.5 billion worth of carpets exported globally, over $920 million was shipped to the U.S. alone.
While this sector may not match the revenue of other major export-oriented industries, its social and economic significance is considerable. Estimates suggest the carpet industry provides direct employment to over two million individuals, potentially rising to 3.2 million, especially among women in rural regions. This labor-intensive sector, particularly the handmade carpet niche, is vital for the livelihoods of countless artisans and weavers, especially in the Mirzapur-Bhadohi area of Uttar Pradesh, a prominent center for carpet production.
However, the recently imposed U.S. tariffs have severely disrupted this once flourishing export-driven sector. Industry insiders report that orders from American buyers have dropped significantly following the tariff announcement, resulting in widespread layoffs and production halts in major carpet manufacturing hubs such as Bhadohi (Uttar Pradesh), Panipat (Haryana), and Jaipur and Bikaner (both in Rajasthan).
“Workers are compensated based on the square footage of carpet they produce. With shipments stalled, production has nearly ceased, and many workers are returning home,” stated an industry representative from Bikaner.
An exporter from Bhadohi, who heavily relies on the U.S. market, confirmed that his operations have ground to a halt, with no shipments dispatched to the U.S. in more than a month, indicating a severe crisis in the sector.
Bhadohi, known as the heart of India’s carpet industry, hosts around 1,200 exporters who also act as manufacturers. Reports suggest that about 1.4 million individuals, including 5-6% women, are directly or indirectly reliant on this industry in the region alone.
With order volumes diminishing, the repercussions of the impact of US tariffs on Indian carpet exports are felt throughout the sector. An official from the Carpet Export Promotion Council (CEPC) commented that the carpet industry is entirely export-driven, with minimal domestic sales, and the steep tariffs are now jeopardizing both the industry and the livelihoods of millions involved.
Although the government’s recent decision to eliminate import duties on cotton may provide some relief, those relying on wool remain vulnerable. Industry insiders warn that competitor nations such as Pakistan, Bangladesh, and Türkiye might take advantage of India’s declining position in the U.S. market.
Nevertheless, the resumption of discussions between India and the U.S. has sparked renewed hope among carpet exporters.
A delegation led by U.S. trade negotiator Brendan Lynch met with officials from India’s Ministry of Commerce yesterday.
Negotiations had been paused last month following Trump’s announcement of the 50% tariffs and India’s continued purchases of Russian oil. However, recent days have seen a more conciliatory tone from U.S. officials, and India has indicated that discussions are ongoing for a bilateral trade agreement (BTA).
