Introduction
India’s handmade carpet industry, as highlighted by the Carpet Export Promotion Council (CEPC), has its origins in the Mughal era and has grown into a globally dominant sector, with India being the largest producer and exporter of handmade carpets. Known for its rich craftsmanship and design diversity, the industry produces a wide range of carpets, including hand-knotted, tufted, and flat-weave styles, made from materials such as wool, silk, cotton, and jute.
Carpet weaving in India was introduced in the 16th century, and Indian carpets have a huge demand in the international markets. India’s heritage of handmade carpets has been recognized worldwide with a significant share in global exports for its eco-friendliness, subtle elegance, excellent designs, superior quality, and vibrant colour craftsmanship with a human touch. Indian handmade carpet industry is highly labour-intensive and provides employment to over 2 million workers/ artisans, especially women directly or indirectly in rural areas.
Currently, India is ranked first in handmade carpet and other floor coverings production and exports in terms of value and volume. The country produces a wide range of handmade carpets and other floor coverings in low, medium, and high quality. Categories of Indian handwoven carpets include Indo-Persian, silk, wool and silk, hand-tufted, Zeigler, and Kilim.
The major carpet-producing states in India are Jammu & Kashmir, Himachal Pradesh, Haryana, Punjab, Madhya Pradesh, Rajasthan, Gujarat, Kerala, Andhra Pradesh, Telangana, Odisha, Uttar Pradesh, and the North-Eastern states. Seven key products in the carpet and durries sector registered in a geographical indication (GI) under Intellectual property rights (IPR) are Handmade Carpet of Bhadohi, Mirzapur Handmade Dhurrie, Kashmir Handmade Carpet, Navalgund Durrie, Ghazipur Wall hanging, Wrangle Durries, and Agra Durrie.
Export Trend
India’s carpet and other floor coverings export (US$ million)[
Source: Department of Commerce & Industry, Niryat
India's handmade carpet (excluding silk) exports stood at US$ 362.10 million on a volume of 292.29 lakh sqm during April-June 2026, remaining the dominant category within India's carpet export basket. Silk carpet exports contributed a further US$ 12.02 million on 69,798 sqm over the same period, together reflecting India's continued strength in handmade carpet manufacturing across both traditional and premium segments.
Export Destinations
The USA was overwhelmingly the largest destination for India's carpet exports during April-June 2026, accounting for a 60.23% share worth US$ 225.35 million, driven primarily by handmade carpets excluding silk. The UK followed at 4.72% (US$ 17.67 million), while Germany (4.22%; US$ 15.80 million) and Australia (4.05%; US$ 15.16 million) were also among the major markets, together with Sweden at 3.27% (US$ 12.23 million).
The Netherlands (2.49%; US$ 9.33 million), Canada (1.83%; US$ 6.86 million) and France (1.75%; US$ 6.55 million) were among other notable destinations, alongside Spain (1.70%; US$ 6.34 million), Italy (1.46%; US$ 5.45 million), the UAE (1.37%; US$ 5.14 million) and Denmark (1.13%; US$ 4.21 million). Overall, India's carpet exports during the quarter totalled US$ 374.12 million, reflecting a geographically diversified basket dominated by North America and Europe, with the USA alone accounting for over 60% of total exports.
Country-wise share of India’s exports (FY26 till June 2026)
Source: Department of Commerce & Industry, Niryat
Government Initiatives
Under the National Handicrafts Development Programme, need-based financial assistance is provided for end-to-end support to artisans across the country, including in Bhadohi, Uttar Pradesh. During 2025-26, three Guru Shishya Hastshilp Prashikshan training programmes and one Toolkit Distribution programme were implemented, benefiting 138 artisans, while two Craft-Based Resource Centres were sanctioned to the Indian Institute of Carpet Technology. Further strengthening the Bhadohi carpet cluster, the Uthan Carpet Producer Company Limited was formed in 2022-23 for handmade carpets under the Bhadohi GI craft, with 11 different interventions sanctioned to the company to support the cluster's development.
In the carpet segment, policy support through international trade developments has further strengthened export prospects. A reduction in US import tariffs on Indian carpets from 50% to around 18% and is expected to significantly boost competitiveness in India’s largest export market. The move is projected to benefit nearly 2.5 million weavers and artisans, enhance export volumes, and reinforce India’s position as a leading global supplier of handmade carpets. Additionally, improved market access is likely to support employment generation and revive demand across key production hubs.
India regularly arranges domestic as well as international trade events and expositions to promote handmade carpets and to provide a platform for exporters in the country. To encourage the handloom weaver and artisans, the Government of India provides several facilities and subsidies. The Ministry of Textiles of India has signed a memorandum of understanding (MoU) with the Ministry of Skill Development and Entrepreneurship for the skill development of handloom weavers. In addition to this, subsidized loan and subsidy for handloom setup is also provided. Additionally, the scheme of Rebate of State and central Taxes and Levies (RoSCTL), effective from March 2019, has been continued till March 31, 2024, for exports of apparel/garments and made ups to make the textile sector competitive in the international market.
The government has taken several steps to promote the export of handicrafts. In addition to several standard International Marketing events, virtual marketing events have also been organized to provide an international marketing platform to the artisans. The government has also undertaken several initiatives on skill development and marketing of the Indian Handmade Carpet Industry. By conducting a skill development program under recognition of prior learning (RPL) for 74,891 artisans, 35 handicrafts technical training centres to train 2,476 artisans, and 16 design & specialized training centres to train 640 artisans. The Government of India held Asia's largest India carpet show this was the India Carpet Expo (ICE) 2023 in October 2023, with 350 overseas buyers from 45 nations.
Government Body
Carpet Export Promotion Council India (CEPC)
The Carpet Export Promotion Council (CEPC) is a non-profit organisation established in 1982 by the Ministry of Textiles, Government of India, to promote the export of handmade carpets, rugs, floor coverings, and allied products from the country. It serves as the apex body representing India’s carpet industry, with a membership base of over 2,000 manufacturers and exporters. The Council facilitates global market access by organising trade fairs, providing market intelligence, supporting exporters with policies and certification, and promoting Indian carpets internationally, while also acting as a bridge between the government and the industry.
FAQs
The USA dominates India's carpet exports with a 60.23% share worth US$ 225.35 million (April-June 2026), driven by handmade carpet exports. The UK (4.72%), Germany (4.22%), Australia (4.05%) and Sweden (3.27%) follow, reflecting strong demand for Indian handmade carpets across North America and Europe.
India's carpet and floor coverings exports totalled US$ 374.12 million during April-June 2026, with handmade carpet exports (excluding silk) contributing US$ 362.10 million. India remains ranked first globally in handmade carpet production and exports by both value and volume.
India's carpet manufacturing industry produces hand-knotted, tufted, and flat-weave carpets from wool, silk, cotton, and jute. Key exported categories include Indo-Persian, silk, wool and silk, hand-tufted, Zeigler, and Kilim carpets, reflecting the diversity within India's carpet industry.
The National Handicrafts Development Programme supports artisans in clusters like Bhadohi, benefiting 138 artisans in 2025-26 through training and resource centres. The reduction in US import tariffs from 50% to around 18% is a major boost, expected to benefit nearly 2.5 million weavers and strengthen carpet exports.
Established in 1982 by the Ministry of Textiles, CEPC is the apex body representing India's carpet industry with over 2,000 members. It promotes Indian handmade carpets by organising trade fairs, providing market intelligence, and supporting exporters with policy and certification guidance.
Major carpet-producing states include Jammu & Kashmir, Himachal Pradesh, Punjab, Rajasthan, Gujarat, Uttar Pradesh, and the North-Eastern states. Seven GI-recognised products, including the Handmade Carpet of Bhadohi and Kashmir Handmade Carpet, highlight India's regional carpet manufacturing strength.
Beyond the USA, UK and Germany, markets such as Sweden, the Netherlands, Canada, France, Spain and the UAE are contributing meaningfully to India's carpet export market. Reduced US tariffs and active trade-event participation are expected to further diversify these destinations.
Handmade carpets (excluding silk) alone were valued at US$ 362.10 million during April-June 2026, forming the dominant share of India's carpet export basket. The labour-intensive industry employs over 2 million workers and artisans, particularly women in rural areas.
Strong global demand for eco-friendly, well-designed handmade carpets, sustained government support via the National Handicrafts Development Programme, and improved market access are key drivers. The US tariff cut from 50% to around 18% significantly boosts the Indian carpet industry's competitiveness.
The outlook remains positive, backed by India's position as the world's largest handmade carpet exporter and ongoing government support for artisan capacity building. Improved US market access, benefiting nearly 2.5 million weavers, is expected to further strengthen India's carpet export market.
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