U.S. tariffs: Carpet industry demands special bailout package

The carpet industry has urged the central government for a special bailout package for the exporters in this sector, especially in Bhadohi, as a cushion against the impact of 50% tariff imposed by the U.S.

All India Carpet Manufacturers Association (AICMA) and the Carpet Export Promotion Council (CEPC), which operates under Ministry of Textiles, had met with Union Textiles Minister Giriraj Singh in this regard.

Bhadohi MLA Zahid Baig (Samajwadi Party) has also requested a special 10% bailout package from the Uttar Pradesh government to provide relief to the exporters.

According to Akhilesh Singh, Chief Administrative Officer of CEPC’s Bhadohi office, India’s carpet exports in the last financial year were valued at ₹16,800 crore. Of this, 60% was exported to the U.S. and 40% to European countries.

He noted that Bhadohi alone accounts for 60% of the country’s total carpet exports, making it clear that the U.S. tariff will hit the district’s exporters the hardest.

Both organisations stressed that their priority is to keep their American importers engaged. They explained that if these importers begin sourcing from countries where the U.S. has imposed lower tariffs, such as China, Turkey, and Pakistan, it would be extremely difficult to win them back.

Meanwhile, in a letter to Uttar Pradesh Chief Minister Yogi Adityanath, Baig emphasized that the tariff will most significantly impact the carpet industry because 99% of carpets made in India are exported, with 60% of that going to the U.S.

The MLA highlighted that the carpet industry is a cottage industry that employs 30 lakh people, with women making up a valuable 25% of that workforce.

He stated that these women are self-reliant, earning through various types of carpet weaving from their homes. Baig warned that if exports are affected, the biggest blow will be to the weavers, labourers, and women who create these carpets using only their hands and skills, without the use of machinery.

This could impact a large portion of the population and lead to millions losing their livelihoods.

Mr. Baig urged the government to protect the 800 export units in U.P. from this direct blow. As a representative of Bhadohi, he appealed to the chief minister to immediately announce a 10% special bailout package for Uttar Pradesh’s exporters to save the carpet industry.