Indian carpet industry

Global meltdown takes the sheen off Indian carpets
by Lokendra Singh

Jaipur: Recession in the US and Europe has badly affected India 's carpet industry. For the last few years Rajasthan's carpet industry was growing at a red hot 15 percent every year, but global meltdown clipped it badly. According to exporters, the industry is passing through its worst phase. "Carpet being a kind of a luxury item was the first hit (by the economic meltdown) because people cannot live without the daily necessities but carpet is one thing they can do without," said Rajesh Jagetia, an exporter. America and Europe , which are worse hit by recession, were the biggest buyers of Indian carpets. Now that demand has slashed. "In terms of rupees, the target was 4400 crores (approx $887 million) per annum from India which last year reduced to 3600 crores to 3500 ($726 million-$706 million). This year it could be worse. We don't have the figures right now but they will be compiled at the end of March or April. If they touch to 3000 crores ($605 million), we will be very happy," said Jagetia. Exporters have severely criticised the government's inaction in coming up with a financial package to bailout the labour-intensive industry. "Carpets were doing very well till 2001 to 2003 but after that, the trade started receding. We are giving employment to lakhs of people, so even they all are affected and Government is not giving any support," said Pawan Goyal, another exporter. Carpet Industry employs around 30,00,000 people from across the country. Rajasthan's carpets are known for their royal designs and finishing, which have earned them worldwide fame.
-Feb 21, 2009

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