The Kashmir carpet industry dates back to the 14th century and was introduced by Mughals. It remains a highly labor intensive industry concentrated in several belts across India. The key steps of the value chain for handmade Kashmiri carpets include wool sorting, spinning, dyeing, knotting, trimming, and packaging. While the industry has strengths like cheap labor and market potential, it faces bottlenecks such as outdated techniques, lack of infrastructure, and unorganized sector. The government and industry are working on strategies to upgrade skills, access new markets, and improve policies and initiatives to support the growth and competitiveness of the Kashmiri carpet industry.