New Delhi: India and China has decided to promote export of Indian handmade carpets to China to diversify the trade basket and address the imbalance in the trade between the two countries. Union Minister of Commerce, Industry and Textiles Shri Anand Sharma met the Governor of Qinghai Province of China Mr Luo Huining, here today. Indian Handmade Carpet Industry is ranked No. 1 in the international market having market share of around 35% of total world import of Handmade Carpets. Carpet City, Xining in Qinghai Province is the major centre from the point of view of Indian Handmade Carpet Industry.

Shri Sharma noted that “of the total export of Handmade Carpets amounting to US $ 653.86 Million only US$ 4.83 million are exported to China which is way below the potential that the two big and growing economies have.” Shri Sharma suggested that the Exhibitors from India showcasing their products in Exhibitions in China be allowed duty free with a restricted value. He also raised issue of the need for lower duty on the import of Indian Handmade Carpets. “High Duty on these carpets make them expensive for the rising consumer class of your country and does not help the local industry very much” he added.

The Indian Minister also suggested that in order to have effective distribution of Handmade Carpets into China a Bonded Warehouse facility to be provided in the Carpet City, Xining (Qinghai Province) which will help the Importers to cater the domestic market. He said that we can have a study group or joint working group on carpet to advise both the governments.

The Export Target the Indian Handmade carpet industry, is fixed for US$ 800.00 Million for the year 2011-12 . The industry is highly labour intensive and provides employment to over one Million workers in the rural areas. However, immense potential for growth of production and exports still exists as the industry is spread over in number of States having abundance manpower and raw-material.