India’s carpet exports shrink 28% in Aug

India's carpets exports have declined for the 11th month in a row,plunging by 28%.

India’s carpets exports have declined for the 11th month in a row,plunging by 28 per cent to USD 41.5 million in August this year over the year ago period due to a slump in demand in the US and Europe.

“We are getting very less orders compared to last year due to less demand from the US and the EU,which account for the bulk of country’s carpets exports,” Carpet Export Promotion Council Chairman Ashok Jain said.

He added,”carpet is a luxury item and not a necessity. Currently,people have economic insecurity and I feel that they will buy carpets only after meeting their basic needs.”

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In the April-August period this year,exports of carpets stood at USD 177.34 million against USD 240.58 million in the same period last fiscal.

On revival in demand,he said,the demand is expected to pick up by January 2010 as there are signs of recovery in some western economies. The exporters are pinning their hopes on the carpets exhibition “India Carpet Expo”,an annual event,to be held in October at Varanasi.

Jain said,”we are expecting good order bookings as we have got confirmations from about 200 foreign buyers.”

Exports of carpets and rugs woven in Srinagar,Jaipur,Udaipur and Varanasi stood at USD 600 million in 2008-09,giving employment to about 2.5 million artisans and unskilled labourers.

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The US and Europe together account for about 80 per cent of the country’s total carpet exports.