US Tariff Pushes India’s Carpet Industry into Crisis, Threatening Livelihoods of Millions
US Tariff Pushes India’s Carpet Industry into Crisis, Threatening Livelihoods of Millions
Bhadohi/Varanasi:The Indian carpet industry, one of the country’s oldest and most renowned cottage industries, has been pushed into a severe crisis following the US President’s decision to impose tariffs of first 25 percent and then 50 percent on carpet imports from India. The move has sent shockwaves across eastern Uttar Pradesh’s carpet belt, directly affecting the lives of millions of weavers in Bhadohi, Varanasi, Mirzapur, Jaunpur, Sonbhadra and adjoining districts.Exporter Sanjay Gupta called the decision “unjust and unfair,” warning that it strikes at the heart of an industry that employs nearly 2 million people. “Around 1.3 million workers are directly dependent on the US market. For the government, an export value of ₹13,000 crore may look small, but for rural families this is their livelihood. If people lose their jobs, large-scale migration will follow, and that will also damage the social fabric,” he said.Another leading exporter, Aslam Mahboob, described the situation as “an unprecedented crisis.” He pointed out that India exported carpets worth ₹17,640 crore last year, with the US accounting for 60 percent of that trade. “Now most orders are either on hold or cancelled, and new production has come to a standstill. The government must step in with a bailout package. If it takes responsibility for 50 percent of the tariff burden and exporters handle the rest, the industry can survive. Schemes such as export incentives, 5 percent interest subvention, and duty rebates should also be reinstated,” he urged.Mahboob further emphasized that the carpet trade is not just about commerce but about India’s cultural heritage, with a history stretching back 400–500 years. “This is a village-based industry where 90 percent of the work is done by artisans and farmer families. If the sector collapses, tufted carpets will move to Turkey and China, while handmade carpets will shift to Pakistan and Afghanistan,” he cautioned.Exporters fear that without urgent government intervention, millions of rural households will lose their livelihoods, and one of India’s most celebrated traditional industries could face collapse.
