The Kashmiri carpet industry is mainly export-oriented, exporting carpets worth Rs. 5500 Crore while domestic consumption is only Rs. 550 Crore. It faces main challenges of competition from other countries like Bangladesh, economic stress in main markets like the US and EU, rupee depreciation, and bans on products from conflict zones. The government provides incentives like tax benefits, skill development courses, and loans through Mudra Bank to support the industry. Initiatives are being taken to centralize production centers, expand to new markets, develop skills, and align with online portals.

1. KASHMIRI CARPET INDUSTRY: A DETAILED
ANALYSIS
AMIT KUMAR
D8

2. CARPET INDUSTRY: AT A GLANCE
 Mainly export oriented
 Export worth Rs.5500 Crore
 Domestic consumtion only Rs.550 Crore
 Highly labor intensive
 Disorganized sector

3. MAIN CHALLENGES
 Competition from other nations especially
Bangladesh
 Economy of main markets like USA and European
Union are under stress
 Depreciation of Rupee
 Many countries are banning products from
conflict zones, ex- Blood Diamond from west
Africa
 New generation moving towards better career
options
 Improper Marketing

4. GOVERNMENT INCENTIVES
Tax
Benefit
• Reduction of Import tariff on raw material
• Rebate in VAT, Excise, etc
Skill
• Short term courses by IICT to enhance
efficiency
Loans
• Providing loans through Mudra bank
• Giving short term concessional loans

5. CARPET INDUSTRY INITIATIVE
 Centralizing the various centers
 Creating awareness in Indian market by trade
fairs
 Expanding to other nations, apart from traditional
countries
 Skill development
 Aligning with online portals like Flipkart and
Snapdeal
 Mechanizing some of the processes