Market Survey

BY: G.P. GANDHI

INDIA CAPITALISING ON

HANDMADE CARPETS
India has emerged as the largest exporter of handmade carpets in the world beating Iran and China.

he Indian carpets are renowned the world over for their exquisite designs, subtle elegance, attractive colours and workmanship. The magnificence of Indian carpet weaving and the intricate patterns that have emerged from it have substantially increased Indias carpet exports and placed it prominently in the international carpet map. The Indian carpet industry is primarily export-oriented. Though it experienced major setback during the period 19962000 due to the issue of

child labour, it has overcome the jolt by implying special measures like rugmark and kaleen labels that ensure non-involvement of child labour in the making of carpets. The carpet industry in India provides employment to around 2.5 million people in backward and inaccessible rural areas of the country where other employment opportunities are

very remote. Rugs and carpets of different types are woven in each state of India. However, each state has its own specialties and qualities. Kashmir can be called the fort of Indian oriental carpets and rugs. Famous for hand-knotted woollen and silk carpets, these are a symbol of quality and artistic expertise. Pure silk carpets of Kashmir are such high-quality that they are woven with 324600 knots per square inch to capture the fine lines of the pattern. Kashmir is also known for namdas, hook rugs and gabbas.

Market Survey
Bhadohi, Mirzapur and Varanasi region (Uttar Pradesh) account for more than 90 per cent of carpets produced in the country. The carpets in the region are known for their The Carpet Export Promotion unmatched styles and elegance. Council (CEPC) under the aegis of The Office of Development ComOffice of Development Commissioner missioner (Handicrafts) under the (Handicrafts) over the years has been Ministry of Texplaying an important role in proTable I tiles, governmoting exports of hand-knotted carment of India, is pets and other floor coverings in the World Imports of Floor Coverings, Etc by the nodal agency overseas markets through its variMajor Countries During 2002 and 2003 for formulation ous initiatives such as extending fi(US$ million) and implementanancial assistance to exporters, idenCountry 2002 2003 Per cent growth tion of several tifying export markets, sponsoring schemes for detrade and industry for participation USA 1,674.2 1,822.9 8.88 velopment of carin fairs and exhibitions both within Germany 1,049.3 1,122.2 15.81 pets at the centhe country and abroad, conducting UK 1,044.9 1,210.1 6.95 tral level. It propublicity campaigns abroad about the Japan 562.1 580.1 3.20 vides necessary quality of Indian carpets, locating Canada 515.4 539.5 4.68 guidance to the suppliers of repute and standing for France 370.4 431.4 16.47 state governoverseas buyers/importers, providing ments for formucredibility reports to foreign buyers, Netherlands 242.7 285.8 17.76 lation and implearranging of buyer-seller meets, asBelgium 211.3 239.4 13.30 mentation of the sisting exporters in the settlement Italy 200.7 231.4 15.30 promotional of their disputes, and adoption of Switzerland 163.8 176.3 7.63 programmes. label kaleen, which implies that no Mexico 174.1 170.1 () 2.30 Spain 141.6 175.0 23.59 Table III Australia 126.5 165.8 31.07 Statewise Major Carpet Production World total 8,598.6 9,575.4 11.36 Centres in India
Source: United Nations, Yearbook of International Trade Statistics 2004, Volume ITrade by Commodity, Geneva

State Uttar Pradesh

Production centres Varanasi, Bhadohi, Gopiganj, Khamaria, Ghosia, Madhosingh Mirzapur, Agra, Shahjahanpur Srinagar, Baramulla, Anantnag, Jammu, Leh Jaipur, Bikaner, Tonk Amritsar Panipat Gwalior Obra, Danapur, Madhubani Dharamshala Darjeeling Elluru, Warangal Bangalore Pondicherry Table IV

Table II

World Exports of Floor Coverings, Etc by Major Countries During 2002 and 2003
(US$ million) Country Belgium China Netherlands USA India Iran Germany Turkey UK France Pakistan Canada Italy World total 2002 2,035.5 768.5 627.8 734.6 619.5 627.1 441.6 286.8 329.8 264.1 243.7 202.9 125.4 8,831.7 2003 2,297.9 875.8 821.7 733.0 729.1 667.3 510.3 381.7 361.5 299.1 231.0 208.6 153.9 9,981.8 Per cent growth 12.89 13.96 30.89 () 0.22 17.69 6.41 15.56 33.09 9.61 13.25 () 5.21 2.81 22.73 13.02

Jammu & Kashmir Rajasthan Punjab Haryana Madhya Pradesh Bihar Himachal Pradesh West Bengal Andhra Pradesh Karnataka Pondicherry

Categorywise Major Production Centres

Category Handmade woolen durries Pure silk carpets Staple synthetic carpets Chairnstitch rugs Centres Bhadohi, Mirzapur, Agra, Jaipur, Panipat and Bangalore Kashmir Srinagar (J&K), Agra and Gwalior Kashmir

Source: United Nations, Yearbook of International Trade Statistics 2004, Volume ITrade by Commodity, Geneva

Market Survey
Table V

Categorywise Indias Exports of Carpets During 2003-04 and 2004-05

(Rs crore) Item Carpets and other textile floor coverings woven not tufted/locked, made-up including Kaleen, Schumacks and Karamanie and similar hand-woven rugs Carpets and other textile floor coverings, knotted whether/not made-up Other carpets and textile floor coverings made-up Carpets and other textile floor coverings tufted made-up Carpets and other textile floor coverings of felt not tufted/locked made-up Total (all India) 2003-04 1,649.75 811.55 539.29 368.59 4.51 3,373.69 2004-05 1,770.84 781.39 554.43 367.93 18.77 3,493.36 Per cent growth 7.33 () 3.72 2.81 () 0.18 316.19 3.55

Source: Compiled from the data of DGCI&S, Monthly Statistics of Indias Foreign Trade: Exports & Re-Exports, March 2004 and 2005, Kolkata

Table VI

Itemwise Indias Exports of Major Varieties of Carpets During 2003-04 and 2004-05
(Rs crore) Item Carpets of wool/fine animal hair of pile construction, not made up Carpets and other textile floor coverings of wool or fine animal hair, knotted Carpets made of wool/fine animal hair, tufted, made up Durries of cotton, made up Placemat, tablemat, etc Other carpets of jute Carpets and floor coverings, knotted other than cotton Carpetting, floor rugs and the like Coir matting, woven, powerloom Carpets of silk, made up Other knitted carpets, etc Other floor coverings of coir Other textile floor coverings, made up Druggets Other floor coverings Durries of wool, made up Carpets of animal hair not of pile construction, made up Carpets, etc of silk Carpets of blended jute Carpets, etc of cotton (not durries) Knitted carpets, carpeting, rugs, mats and mattings Carpets of wool/fine animal hair Carpets etc of cotton (not durries) Kaleen, Schumacks, Karmanie and similar hand-woven rugs Other textile floor coverings, made up Total (all India) 2003-04 728.52 755.12 273.82 193.97 177.59 55.40 55.04 43.57 94.53 64.93 56.53 36.25 20.10 59.60 42.52 47.79 11.57 18.13 30.84 34.76 3.41 17.10 5.36 13.35 28.45 2,779.79 2004-05 747.54 669.28 286.73 177.85 126.48 126.25 102.45 64.61 57.33 51.81 47.08 41.89 41.03 38.49 32.06 31.61 28.77 27.28 25.39 24.52 21.44 20.89 16.05 15.72 14.09 2,583.62 Per cent growth 2.61 () 11.37 4.71 () 8.31 () 28.78 127.89 86.14 49.29 () 39.35 () 20.21 () 16.72 15.56 104.13 () 35.42 () 24.60 () 33.86 148.66 50.47 () 17.67 () 29.46 528.74 22.16 199.44 17.75 () 50.47 () 7.06

Source: Compiled from the data of DGCI&S, Monthly Statistics of Indias Foreign Trade: Exports & Re-Exports March 2004 and 2005 issues, Kolkata

Market Survey
child labour was involved in making of carpets. The CEPC has been entrusted with the responsibility of enforcing the new labeling system. This is against the background that most of the major importing countries like Germany put this condition before buying Indian carpets. As such, it is mandatory to fix this label on each and every carpet destined for exports. For getting up-to-date information about the latest developments in the carpet industry, access its website at www.indiancarpets.com. Besides, the Institute of Carpet Technology (IICT) has been set up at Bhadohi (Uttar Pradesh) to provide training facilities in the areas of weaving, dyeing, designing and finishing. For details of various programmes organised by the institute, contact it through its e-mail ID iic@iict.ac.in. Table VII

Indias Exports of Carpets and Related Products to Major Markets During 2003-04 and 2004-05
(Rs crore) Country USA Germany UK Italy France Australia Spain Canada Netherlands Japan Belgium Denmark Austria Switzerland Total (all India) 2003-04 1,500.00 480.75 274.47 60.46 90.86 70.19 79.88 71.07 45.92 75.51 43.44 31.57 44.80 15.03 3,373.69 2004-05 1,548.89 521.64 266.43 102.19 98.97 79.54 71.60 64.39 63.46 62.79 42.55 39.26 28.22 11.22 3,493.36 Per cent growth 3.26 8.51 () 2.93 69.02 8.93 13.32 () 10.37 () 9.40 38.40 () 16.85 () 2.05 24.36 () 37.01 () 25.35 3.55

Global trade
World imports. World imports of floor coverings, etc by major countries in 2003, as may be seen from Table I, registered a growth of 11.36 per cent when the same reached a level of $9575.4 million as against $8598.6 million in the previous year. USA continues to be the largest market for Indian carpets. During the period, it registered a growth of 8.88 per cent. The other countries registering a steep growth comprised Australia (31.07 per cent), Spain (23.59 per cent), the Netherlands (17.76 per cent), France (16.47 per cent), Germany (15.81 per cent) and Italy (15.30 per cent). On the other hand, Mexico registered a marginal decline of 2.3 per cent. World exports. World exports of carpets in 2003, as may be seen from Table II, shot up to $9981.8 million from $8831.7 million in the previous year. Belgium continues to be the largest exporting country followed by China, the Netherlands, USA, India,

Source: Compiled from the data of DGCI&S, Monthly Statistics of Indias Foreign Trade: Exports & Re-Exports, March 2004 and 2005, Kolkata

Iran and Germany. India emerged as the firth largest exporting country during the period. The countries showing a steep growth included Turkey (33.09 per cent), Netherlands (30.89 per cent), Italy (22.73 per cent), India (17.69 per cent) and Germany (15.56 per cent). On the other hand, the countries showing a negative growth comprised Pakistan (5.21 per cent) and USA (0.22 per cent).

Carpet industry in India

There are around 1200 carpet manufacturing units, of which around 200 are in the organised sector and the remaining in the smallscale sector. Statewise major carpet production centres in India are shown in Table III. Categorywise major production centres are shown in Table IV.

Indias exports
India has emerged as the largest exporter of handmade carpets

in the world beating Iran and China. It has grabbed 35.5 per cent share of the $2.6 billion export market. China figures next with 20 per cent share, followed by Iran (18 per cent), Pakistan (10.4 per cent), Nepal (4.4 per cent) and Turkey (3.4 per cent). Categorywise. Indias exports of carpets and carpet related products in 2004-05 registered a marginal growth of 3.55 per cent over the previous year when the same reached a level of Rs 3,493.36 crore as against Rs 3,373.69 per cent in the previous year. Carpets and other textile floor coverings, woven not tufted/locked made-ups including kaleens, schumacks and karamanie, and similar handwoven rugs continue to be the largest category of exports. In 2004-05, it alone accounted for a share of 50.69 per cent of the total exports of carpets and related products from the country. The category carpets and other textile floor coverings of felt not tufted/locked madeups registered a

Market Survey
Table VIII

Indias Exports of Major Varieties of Carpets to Important Markets During 2003-04 and 2004-05
Item/country 2003-04 2004-05 Per cent growth Item/country 2003-04 2004-05
Carpets of wool/fine animal hair of pile construction, not made up USA 272.84 260.81 () 4.41 Germany 196.40 203.88 3.81 UK 79.40 73.10 () 7.93 Australia 16.45 18.34 11.49 Belgium 9.82 16.49 67.92 Spain 19.24 14.95 () 22.30 New Zealand 0.99 13.37 1,250.51 Sweden 11.33 12.18 7.50 Greece 7.82 11.94 52.69 Turkey 13.78 11.48 () 16.69 France 9.94 11.31 13.78 Austria 9.95 10.52 5.73 Denmark 12.55 10.31 () 17.85 Total (incl. others) 728.52 747.54 2.61 Carpets of wool/fine animal hair of pile construction, not made up USA 424.24 398.49 () 6.07 Germany 124.14 127.18 2.45 UK 38.14 25.20 () 33.93 Canada 22.19 16.35 ()26.32 France 18.28 11.61 () 36.49 Netherlands 7.67 11.25 46.68 Turkey 9.01 10.48 16.32 Spain 9.99 8.47 () 15.22 Australia 8.88 7.85 () 11.60 Italy 4.01 6.10 52.12 Belgium 11.87 4.52 () 61.92 Total (incl. others) 755.12 669.28 () 11.37 Carpets made of wool/fine animal hair, tufted, made up USA 180.08 201.61 11.96 Germany 17.36 17.34 () 0.11 UK 18.55 11.77 () 36.55 Greece 3.72 7.77 108.87 France 8.29 6.64 () 19.90 Australia 5.40 6.22 15.19 Canada 5.33 5.83 9.38 Spain 5.47 5.63 2.93 Portugal 4.29 4.10 () 4.43 Turkey 1.95 3.43 75.90 Total (incl. others) 273.82 286.73 4.71 Durries of cotton, made up USA 58.11 50.90 () 12.41 Germany 13.59 21.63 59.16 Italy 20.94 19.49 () 6.92 Japan 29.46 18.66 () 36.66 Sweden 6.43 9.36 45.57 UK 7.08 9.02 27.40 France 8.85 8.25 () 6.78 Australia 7.70 4.88 () 36.62 Spain 7.74 4.81 () 37.86 Portugal 4.94 3.87 () 21.66 Finland 6.77 3.72 () 45.05 Malaysia 2.17 3.17 46.08 Canada 3.43 2.95 () 13.99 Belgium 1.61 1.97 22.36 Denmark 1.80 1.50 () 16.67 Poland 0.63 1.48 134.92 Greece 1.22 1.11 () 9.92 Total (Incl. other) 193.97 177.85 () 8.31 Placemat, tablemat, etc USA 77.70 46.62 () 40.00 Germany 14.88 15.83 6.38 Australia 8.40 12.60 UK 18.86 10.57 Italy 3.44 4.16 Sweden 5.13 3.99 Japan 7.18 3.53 Canada 5.84 3.43 Spain 5.32 2.16 Total (incl. others) 177.59 126.48 Other carpets of jute USA 26.19 79.11 UK 5.09 10.87 Germany 2.37 6.28 Italy 2.98 3.83 Canada 2.89 3.24 France 2.47 2.64 South Africa 1.00 2.52 Australia 1.14 2.06 Spain 1.24 1.85 Denmark 0.61 1.29 Sweden 1.11 1.12 Chile 0.41 1.06 Netherlands 0.28 1.05 Total (Incl. others) 55.40 126.25 Carpets and floor coverings, knotted other than cotton USA 20.88 26.44 Germany 8.37 23.89 France 4.18 9.91 UK 1.39 7.29 Malaysia 0.16 4.17 Netherlands 0.69 3.59 UAE 1.39 3.19 Greece 0.28 2.27 Australia 0.60 1.80 Canada 1.34 1.73 Italy 0.56 1.61 Singapore 0.34 1.57 Kuwait 1.07 1.51 Bahrain Is 0.39 1.27 Mauritius 0.20 1.13 Total (incl. others) 55.04 102.45 Carpetting, floor rugs and the like USA 16.03 27.52 Germany 3.54 11.97 UK 6.85 8.22 Australia 2.06 2.40 France 1.99 2.03 Malaysia 0.48 1.89 Belgium 0.51 1.49 Austria 1.21 1.16 Canada 1.55 1.11 Total (incl. others) 43.57 64.61 Coir matting, woven, powerloom UK 14.94 13.67 USA 34.22 13.64 France 4.62 3.49 Italy 4.57 2.66 Australia 2.86 1.91 South Africa 1.06 1.31 Japan 1.76 1.25 Spain 3.28 1.02 Total (incl. others) 94.53 57.33

(Rs crore)
Per cent growth
50.00 () 43.96 20.93 () 22.22 () 50.84 () 41.27 () 59.40 () 28.78 202.06 113.56 164.98 28.52 12.11 6.88 152.00 80.70 49.19 111.48 0.90 158.54 275.00 127.89 26.63 185.42 137.08 424.46 2,506.25 420.29 129.50 710.71 200.00 29.10 187.50 361.76 41.12 225.64 465.00 86.14 71.68 238.14 20.00 16.50 2.01 293.75 192.16 () 4.13 () 28.39 48.29 () 8.50 () 60.14 () 24.46 () 41.79 () 33.22 23.58 () 28.98 () 68.90 () 39.35

Source: Compiled from the data of DGCI&S, Monthly Statistics of Indias Foreign Trade, Exports & Re-Exports March 2004 and 2005 issues, Kolkata

Market Survey
Table IX

Indias Exports of Major Varieties of Carpets and Carpet Related Products to Select Markets During 2003-04 and 2004-05
Item USA Carpets and other textile floor coverings of wool or fine animal hair, knotted Carpets of wool fine animal hair of pile construction not made up Carpets of wool fine animal hair tufted made up Coir carpets and other rugs Other carpets of jute Durries made of cotton Placemats, tablemats, etc Carpetting, flooring rug and the like Carpets and floor coverings, knotted other than cotton Carpets and other floor coverings not durries of cotton Carpets of wool fine animal hair not of pile construction made up Carpets of silk Other floor coverings of coir Other floor coverings of wool fine animal hair tufted made up Other knitted carpets etc made up Carpets of blended jute Other textile floor coverings made up Coir matting, woven, powerloom Other floor coverings of wool/fine animal hair Durries of wool Knitted carpets, carpeting, rugs, mats and mattings Other carpets of cotton of felt not tufted/flocked made up Carpets etc of cotton not durries Total (incl. others) Germany Carpets of wool/fine animal hair of pile construction, not made up Carpets and other textile floor coverings of wool or fine animal hair, knotted Carpets and floor coverings, knotted other than cotton Durries made of cotton Coir carpets and other rugs Carpets of wool fine animal hair tufted made up Placemat, tablemat etc Carpetting, floor rugs and the like Druggets Carpets etc of silk Other carpets of jute Carpets and other floor coverings not durries of cotton Durries of wool Total (incl. others) UK Carpets of wool/fine animal hair of pile construction, not made up Coir carpets and other rugs Carpets and other textile floor coverings of wool or fine animal hair, knotted Coir matting, woven, powerloom Carpets of wool fine animal hair tufted made up Other carpets of jute 424.24 272.84 180.08 73.03 26.19 58.11 77.70 16.03 20.88 9.83 4.32 20.86 16.57 30.36 26.02 15.79 6.68 34.22 5.67 22.93 2.83 13.08 21.49 1,500.00 196.40 124.14 8.37 13.59 13.16 17.36 14.88 3.54 6.23 8.06 2.37 2.21 4.75 480.75 79.40 17.13 38.14 14.94 18.55 5.09 398.49 260.81 201.61 130.29 79.11 50.90 44.62 27.52 26.44 25.09 24.96 23.60 22.78 20.01 18.45 15.18 13.66 13.64 12.49 12.18 11.84 11.23 10.14 1,548.89 203.88 127.18 23.89 21.63 19.53 17.34 15.83 11.97 6.83 6.48 6.28 5.86 4.54 521.64 73.10 28.12 25.20 13.67 11.77 10.87 () 6.07 () 4.41 11.96 78.41 202.06 () 12.41 () 42.57 71.68 26.63 155.24 477.78 13.14 37.48 () 34.09 () 29.09 () 38.63 104.49 () 60.14 120.28 () 46.88 318.37 () 14.14 () 52.82 3.26 3.81 2.45 185.42 59.16 48.40 () 0.12 6.38 238.14 9.63 () 19.60 164.98 165.16 () 4.42 8.51 () 7.93 64.16 () 33.93 () 8.50 () 36.55 113.56
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2003-04

2004-05

(Rs crore) Per cent growth

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Item Durries made of cotton Carpetting, floor rugs and the like Carpets and floor coverings, knotted other than cotton Other floor coverings of wool/fine animal hair Carpets of silk Other knitted carpets etc made up Other textile floor coverings made up 100% polypropylene carpet mats with jute, rubber, latex or PU foam backing Total (incl. others) Italy Durries made of cotton Coir carpets and other rugs Carpets and other floor coverings not durries of cotton Carpets and other textile floor coverings of wool or fine animal hair, knotted Carpets of wool, fine animal hair of pile construction not made up Placemat, tablemat, etc KLM, Schmacks, Karmane and similar hand-woven rugs Other carpets of jute Other knitted carpets etc made up Other carpets of jute Coir matting, woven, powerloom Total (incl. others) France Coir carpets and other rugs Carpets and other textile floor coverings of wool or fine animal hair, knotted Carpets of wool, fine animal hair of pile construction not made-up Carpets and floor coverings, knotted other than cotton Durries made of cotton Carpets of wool/fine animal hair tufted made-up Carpets and other floor coverings not durries of cotton Placemat, tablemat, etc Other carpets of jute Other textile floor coverings made-up Total (incl. others)

2003-04 7.08 6.85 5.51 3.02 6.63 5.33 2.38 0.25 274.47 20.94 8.06 8.62 4.01 4.94 3.44 1.33 2.98 3.67 1.59 4.57 60.46 4.83 18.28 5.05 4.18 8.85 8.29 1.37 3.77 2.47 0.72 90.86

2004-05 9.02 8.22 7.29 6.83 6.75 6.32 4.40 3.22 266.43 19.49 14.22 9.62 6.10 5.33 4.16 3.87 3.83 3.05 2.70 2.66 102.19 11.74 11.61 11.31 9.91 8.25 6.64 3.95 3.38 2.64 2.13 98.97

Per cent growth 27.40 20.00 32.30 126.16 1.81 18.57 84.87 1188.00 () 2.93 () 6.92 76.43 11.60 52.12 7.89 20.93 190.98 28.52 () 16.89 69.81 () 41.79 69.02 143.06 () 36.49 123.96 137.08 () 6.78 () 19.90 188.32 () 10.34 68.83 195.83 8.93

Source: Compiled from the data of DGCI&S, Monthly Statistics of Indias Foreign Trade: Exports & Re-Exports, March 2004 and 2005 issues, Kolkata

record growth of 316.19 per cent. On the other hand, the categories carpets and other textile floor coverings, knotted whether/not madeups and carpets and other textile floor coverings, tufted madeups registered a marginal decline of 3.72 per cent and 0.18, respectively. Detailed itemwise data on Indias exports of major varieties of carpets and related products during the period 2003-04 and 2004-05 is shown in Table VI. Countrywise. Countrywise ex-

ports in 2004-05, as may be seen from Table VII, show that USA continues to be the largest market for Indian carpets and carpet related products. In 2004-05, it registered a marginal increase of 3.26 per cent over the previous year when exports to this market reached a level of Rs 1,548.89 crore as against Rs 1,500 crore in the previous year. The countries showing a phenomenal growth during the period included Italy (69.02 per cent), the Netherlands (38.40 per cent) and Denmark (24.36 per cent).

On the other hand, the countries showing a steep decline included Austria (37.01 per cent), Switzerland (25.35 per cent) and Japan (16.85 per cent). Indias item-wise exports to important countries in 2003-04 and 2004-05 and countrywise exports of major varieties of carpets and related products are shown in Tables VIII and IX, respectively.
The author is a research officer at the Indian Institute of Foreign Trade, New Delhi