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Govt's support vital to rescue fading carpet industry
Nov '08
Exquisite designs, intricate patterns, subtle elegance, attractive colours and excellent craftsmanship, have become the trade marks of Indian carpets.

Bhadohi in Uttar Pradesh, one of the biggest carpet manufacturing centres in India, that accounts for nearly 65 percent of India's total carpet export, is under severe pressure. According to market experts, once flourishing carpet industry, due to lack of proper support from the Government, is now on death bed.

Global economic slow down is now adding fuel to the fire. Market insiders say that export orders worth near about Rs3 billion were cancelled recently.

Mr Ravi Patodia, President, All India Carpet Manufacturers' Association, in an exclusive interaction with Fibre2fashion told, “Due to recession in global market, Indian Carpet Industry is facing shortage of export orders, delay in payments and cancellation of orders. More then 2 million rural artisans are facing danger of unemployment. At least 50 percent of exporters are not able to pay back loans. The industry need Government supports badly. Better Duty Drawback rate, low rate of interest on export finance can help the industry.”

Indian carpet industry is 100 percent export oriented industry and has very small domestic market which is also very slow. Each year, over Rs35 billion worth handmade carpet are exported to various countries.

An industry, that once provided employment to over 300,000 people, today, is unable to generate jobs even for 10,000 people.

Until and unless world market scenario improves, and Government pays heed to this waning sector, it will be quite difficult for the carpet industry to survive fierce competition of the world market, suggests Mr Patodia.

Fibre2fashion News Desk - India

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