Lok Sabha Question No. 2197 (UNSTARRED), answered on 2026-02-12
Subject: Impact of Tariff on Carpet Industry
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Pushpendra Saroj, Adv Priya Saroj

## 2197.

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 2197 TO BE ANSWERED ON: 12.02.2026

## IMPACT OF TARIFF ON CARPET INDUSTRY

SHRI PUSHPENDRA SAROJ:

ADV PRIYA SAROJ:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) the export contribution of the carpet industry, during the last five years, State and district-wise particularly for Uttar Pradesh;
- (b) the assessed export revenue loss faced by the Indian carpet industry due to recent tariff actions in major overseas markets State- wise and district-wise for Uttar Pradesh;
- (c) the  number  of  artisans  and  workers  employed  in  the  carpet  sector  and  the  number  facing livelihood disruption due to order cancellations, production slowdown or liquidity stress, State wise and district-wise for Uttar Pradesh;
- (d) whether carpet-sector Micro, Small and Medium Enterprises (MSMEs) in Uttar Pradesh have received support under ECLGS or any successor credit scheme, with beneficiary and amount details and if so, the details thereof; and
- (e) the measures taken to protect employment and accelerate export diversification to prevent loss of traditional carpet-weaving livelihoods in Uttar Pradesh?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

- (a) to (c): The State-wise details of export contribution of the carpet industry during the last five years  are  at  Annexure-I.  The  district-wise  details  of  export  of  carpets  from  Uttar  Pradesh  are  at Annexure-II.
- (d): Emergency Credit  Line Guarantee Scheme (ECLGS) was launched in May, 2020 as part of Aatmanirbhar Bharat Abhiyaan to support eligible Micro, Small and Medium Enterprises (MSMEs) and business enterprises to ease their liquidity position. The Scheme provided for collateral free loans to  eligible  borrowers  with  100%  guarantee  in  respect  of  the  eligible  amount  as  per  the  Scheme guidelines.  The  Scheme  was  valid  till  31.3.2023.  A  total  of  10,561  MSME  loans  amounting  to Rs.783.63  crore  was  guaranteed  in  Textile  sector  including  Carpet  industry  under  ECLGS  in  Uttar Pradesh.
- (e): The carpet  industry  has  been  consistently  supported  through  a  combination  of  financial  and non-financial  export  promotion  measures,  including  inter  alia:  Branding  and  Marketing  support, Market Access Initiative Scheme for participation in overseas fairs, Interest equalization Support and Duty Drawback Schemes.

The Government continues to work to mitigate the impact of the US tariff measures on Indian exports through a comprehensive multi-pronged strategy encompassing intensive engagement with the US  Government  for  a  mutually  beneficial  India-US  Bilateral  Trade  Agreement,  immediate  relief through  Trade  relief  measures  of  RBI,  Credit  Guarantee  Scheme  for  Exporters,  enhancement  of domestic demand through next generation GST reforms, Export Promotion measures such as the new Export Promotion Mission which provide support and assistance to our exporters, pursuing FTAs with new  countries  and  better  utilization  of  existing  FTA.  It  is  expected  that  these  measures  will  also enhance diversification and resilience in India's trade relationships.

Details of some of the aforementioned measures are as follows:

## I. Export Promotion Mission (EPM)

The Mission will provide a comprehensive, flexible, and digitally driven framework for export promotion, with a total outlay of Rs.25,060 crore for FY 2025-26 to FY 2030-31. EPM marks a strategic  shift  from  multiple  fragmented  schemes  to  a  single,  outcome-  based,  and  adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs.

The Mission will operate through two integrated sub-schemes:

- (a) NIRYAT PROTSAHAN - focuses on improving access to affordable trade finance for MSMEs through  a  range  of  instruments  such  as  interest  subvention,  export  factoring, collateral  guarantees,  credit  cards  for  e-commerce  exporters,  and  credit  enhancement support for diversification into new markets.
- (b) NIRYAT DISHA - focuses on non-financial enablers that enhance market readiness and competitiveness, including export quality and compliance support, assistance for international  branding,  packaging,  and  participation  in  trade  fairs,  export  warehousing and  logistics,  inland  transport  reimbursements,  and  trade  intelligence  and  capacitybuilding initiatives.
- II. Credit  Guarantee  Scheme  for  Exporters has  also  been  approved  to  provide  100%  credit guarantee  coverage  by  National  Credit  Guarantee  Trustee  Company  Limited  (NCGTC)  to Member Lending Institutions (MLIs) for extending additional collateral free credit facilities up to Rs.20,000 crore to eligible exporters, including MSMEs. The Scheme is expected to enhance the  global  competitiveness  of  Indian  exporters  and  support  diversification  into  new  and emerging  markets.  Enabling  collateral-free  credit  access  will  strengthen  liquidity,  ensure smooth business operations, and reinforce India's progress towards achieving the USD 1 trillion export target.
- III. Trade Relief  Measures: The  Reserve  Bank  of  India  (RBI)  has  also  undertaken  trade  relief measures for eligible affected exporters including provision for debt repayment moratorium and extension of tenor for export credit.

- IV. Leveraging  Free  Trade  Agreements :  The  Government  aims  for  promotion  of  Export Diversification and has signed Free Trade Agreements  (FTAs)  and  Preferential Trade Agreements  (PTAs)  with  several  key  trading  partners.  Government  is  working  with  all stakeholders to enable our exporters to better utilize the benefits of  India's FTAs with major markets such as Japan, Korea, UAE etc. and effectively utilize the opportunities that have been created with the recent concluded FTAs such as with the EFTA countries, UK, Oman and New Zealand.  The  Government  has  also  recently  concluded  FTA  negotiations  with  the  European Union.

Furthermore, the Government has undertaken the following initiatives to provide new impetus to MSME resilience and growth:

- a. Credit  Guarantee  Scheme  (CGS)  for  Micro  and  Small  Enterprises  (MSEs)  through  Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide credit guarantee of  upto  Rs.  10  crore  on  loans  extended  to  MSEs  without  collateral  security  or  third-party guarantees.
- b. Self-Reliant India (SRI) Fund to infuse Rs. 50,000 crore as equity funding in those MSMEs which have the potential and viability to grow and become large units. Under this scheme total size of fund of Rs. 50,000 crore has a provision of Rs.10,000 crore from Government of India and Rs.40,000 crore through Private Equity / Venture Capital funds. This initiative is aimed at providing  growth  capital  to  the  deserving  and  eligible  units  of  MSME  sector.  The  Budget 2026-27 has also announced a support of Rs 2000 crore to top up the Self-Reliant India Fund set  up  in  2021  to  continue  support  to  micro  enterprises  and  maintain  their  access  to  risk capital.
- c. Mutual  Credit  Guarantee  Scheme  for  MSMEs  (MCGS-MSME),  a  government-backed initiative designed to help Micro, Small, and Medium Enterprises (MSMEs) access loans to grow their businesses. This scheme offers a credit guarantee, making it easier for MSMEs to obtain  loans,  especially  for  purchasing  essential  equipment  and  machinery.  The  Scheme provides credit guarantee cover to lenders (Scheduled Commercial Banks, All India Financial Institutions,  NBFCs)  for  their  term  loans  up  to  Rs.100  crore  to  MSMEs  for  their  projects involving purchase of equipment/machinery.
- d. Subsequent  to  Union  Budget Announcement  2024-25,  twenty-six  (26)  branches  have  been opened  by  SIDBI  all  over  India  during  FY  2024-25  to  expand  its  reach  to  serve  MSME clusters and provide direct credit to them. 37 branches are proposed to be opened in FY 202526 out of which 34 branches have since been opened.
- e. GST rationalisation undertaken by the government directly strengthen MSMEs fortifying local supply  chains  in  critical  sectors  like  automobiles,  textiles,  food  processing,  logistics,  and handicrafts.  Lower  GST  rates  have  made  raw  materials  and  services  more  affordable, motivating  small  and  medium  enterprises  and  start-ups  to  scale  up  operations,  invest  in innovation, and compete both domestically and globally.

****

Annexure referred in part (a) to (c) of answer to Lok Sabha Unstarred Question no. 2197 on Impact of Tariff on Carpet Industrydue for reply on 12/02/2026.

| State wise details of Export of Carpet since 2021-22   | State wise details of Export of Carpet since 2021-22   | State wise details of Export of Carpet since 2021-22   | State wise details of Export of Carpet since 2021-22   | State wise details of Export of Carpet since 2021-22   | State wise details of Export of Carpet since 2021-22   |
|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|--------------------------------------------------------|
| STATE                                                  | 2021-22                                                | 2022-23                                                | 2023-24                                                | 2024-25                                                | Value in USD 2025-26                                   |
| Andhra Pradesh                                         | 9126                                                   | 20712                                                  | 1400                                                   | 262                                                    | 87                                                     |
| Assam                                                  | 22771                                                  | 18695                                                  | 4936                                                   | 6409                                                   | 184                                                    |
| Bihar                                                  | 38688                                                  | 25017                                                  | 14927                                                  | 58560                                                  | 28846                                                  |
| Chandigarh                                             | 4124                                                   | 0                                                      | 3122                                                   | 0                                                      | 0                                                      |
| Chhattisgarh                                           | 0                                                      | 0                                                      | 773                                                    | 248                                                    | 426                                                    |
| Dadra and Nagra Haveli, Daman and Diu                  | 17055634                                               | 1990409                                                | 1845633                                                | 2311512                                                | 1306769                                                |
| Delhi                                                  | 16348620                                               | 15830972                                               | 13902736                                               | 14788913                                               | 7532511                                                |
| Goa                                                    | 25663                                                  | 4898                                                   | 1628                                                   | 7556                                                   | 0                                                      |
| Gujarat                                                | 82943430                                               | 33626096                                               | 25112538                                               | 20798373                                               | 11565990                                               |
| Haryana                                                | 723705365                                              | 470930416                                              | 501121125                                              | 563654254                                              | 417002112                                              |
| Himachal Pradesh                                       | 26303                                                  | 11814                                                  | 0                                                      | 5                                                      | 2281                                                   |
| Jammu and Kashmir                                      | 12510953                                               | 6132794                                                | 4277781                                                | 3809573                                                | 3084853                                                |
| Jharkhand                                              | 501                                                    | 693                                                    | 2132                                                   | 866                                                    | 27892                                                  |
| Karnataka                                              | 1480049                                                | 516740                                                 | 649865                                                 | 512739                                                 | 322681                                                 |
| Kerala                                                 | 98373679                                               | 72798515                                               | 96364617                                               | 115005225                                              | 88144723                                               |
| Madhya Pradesh                                         | 1722653                                                | 1530654                                                | 620105                                                 | 828740                                                 | 364203                                                 |
| Maharashtra                                            | 25498825                                               | 17634048                                               | 20170948                                               | 20313832                                               | 14943994                                               |
| Puducherry                                             | 11604                                                  | 6074                                                   | 21374                                                  | 777                                                    | 1444                                                   |
| Punjab                                                 | 2426448                                                | 1190517                                                | 1039131                                                | 1054039                                                | 978905                                                 |
| Rajasthan                                              | 94734696                                               | 91146599                                               | 89668798                                               | 86631642                                               | 52212259                                               |
| Tamil Nadu                                             | 16227562                                               | 12544345                                               | 19172511                                               | 25060133                                               | 15761338                                               |
| Telangana                                              | 4293624                                                | 2722630                                                | 107445                                                 | 85784                                                  | 77856                                                  |
| Uttar Pradesh                                          | 688827583                                              | 618968013                                              | 616529699                                              | 677829949                                              | 488252402                                              |
| Uttarakhand                                            | 1700130                                                | 1947372                                                | 3181831                                                | 6583756                                                | 2486296                                                |
| West Bengal                                            | 947454                                                 | 724209                                                 |                                                        |                                                        | 346024                                                 |
| Source: - DGCIS                                        |                                                        |                                                        | 1333962                                                | 1764304                                                |                                                        |

Annexure-II Annexure referred in part (a) to (c) of answer to Lok Sabha Unstarred Question no. 2197 on

Impact of Tariff on Carpet Industrydue for reply on 12/02/2026.

| District-wise details of Export of Carpet from the state Uttar Pradesh since 2021-22 Value in USD   | District-wise details of Export of Carpet from the state Uttar Pradesh since 2021-22 Value in USD   | District-wise details of Export of Carpet from the state Uttar Pradesh since 2021-22 Value in USD   | District-wise details of Export of Carpet from the state Uttar Pradesh since 2021-22 Value in USD   | District-wise details of Export of Carpet from the state Uttar Pradesh since 2021-22 Value in USD   | District-wise details of Export of Carpet from the state Uttar Pradesh since 2021-22 Value in USD   |
|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------|
| DISTRICT                                                                                            | 2021-22                                                                                             | 2022-23                                                                                             | 2023-24                                                                                             | 2024-25                                                                                             | 2025-26 (Till Dec,25)                                                                               |
| Agra                                                                                                | 33431746                                                                                            | 39883023                                                                                            | 44100117                                                                                            | 38391935                                                                                            | 23067917                                                                                            |
| Aligarh                                                                                             | 500789                                                                                              | 114224                                                                                              | 3013                                                                                                | 2601                                                                                                | 8449                                                                                                |
| Ambedkar Nagar                                                                                      | 324                                                                                                 | 0                                                                                                   | 2863                                                                                                | 0                                                                                                   | 0                                                                                                   |
| Amroha                                                                                              | 1487707                                                                                             | 597893                                                                                              | 445705                                                                                              | 603046                                                                                              | 373910                                                                                              |
| Auraiya                                                                                             | 18455                                                                                               | 19580                                                                                               | 2953                                                                                                | 17299                                                                                               | 8238                                                                                                |
| Ayodhya                                                                                             | 13462                                                                                               | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   |
| Azamgarh                                                                                            | 0                                                                                                   | 0                                                                                                   | 74168                                                                                               | 0                                                                                                   | 0                                                                                                   |
| Baghpat                                                                                             | 33892                                                                                               | 149701                                                                                              | 305253                                                                                              | 500883                                                                                              | 140356                                                                                              |
| Bahraich                                                                                            | 8301                                                                                                | 2644                                                                                                | 13054                                                                                               | 31737                                                                                               | 16249                                                                                               |
| Banda                                                                                               | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   | 4076                                                                                                | 0                                                                                                   |
| Barabanki                                                                                           | 0                                                                                                   | 1178                                                                                                | 0                                                                                                   | 0                                                                                                   | 7021                                                                                                |
| Bareilly                                                                                            | 73623                                                                                               | 15                                                                                                  | 5666                                                                                                | 0                                                                                                   | 4512                                                                                                |
| Bhadohi                                                                                             | 460463646                                                                                           | 419871894                                                                                           | 423425741                                                                                           | 481060867                                                                                           | 342485916                                                                                           |
| Bijnor                                                                                              | 818                                                                                                 | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   |
| Budaun                                                                                              | 7213                                                                                                | 3865                                                                                                | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   |
| Bulandshahr                                                                                         | 3866                                                                                                | 0                                                                                                   | 34238                                                                                               | 6077                                                                                                | 2165                                                                                                |
| Chandauli                                                                                           | 0                                                                                                   | 2773                                                                                                | 2648                                                                                                | 183                                                                                                 | 0                                                                                                   |
| Chitrakoot                                                                                          | 0                                                                                                   | 7850                                                                                                | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   |
| Etawah                                                                                              | 0                                                                                                   | 1202                                                                                                | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   |
| Farrukhabad                                                                                         | 0                                                                                                   | 0                                                                                                   | 983                                                                                                 | 0                                                                                                   | 0                                                                                                   |
| Fatehpur                                                                                            | 4024                                                                                                | 0                                                                                                   | 9941                                                                                                | 567                                                                                                 | 0                                                                                                   |
| Firozabad                                                                                           | 3236                                                                                                | 84041                                                                                               | 304451                                                                                              | 222070                                                                                              | 110660                                                                                              |
| Gautam Buddha Nagar                                                                                 | 11319265                                                                                            | 7810964                                                                                             | 11002849                                                                                            | 9979150                                                                                             | 9470061                                                                                             |
| Ghaziabad                                                                                           | 3932811                                                                                             | 2525826                                                                                             | 2715727                                                                                             | 2826247                                                                                             | 1611710                                                                                             |
| Ghazipur                                                                                            | 0                                                                                                   | 0                                                                                                   | 594                                                                                                 | 0                                                                                                   | 0                                                                                                   |
| Gorakhpur                                                                                           | 5944                                                                                                | 2190                                                                                                | 5065                                                                                                | 899                                                                                                 | 18                                                                                                  |
| Hamirpur                                                                                            | 547                                                                                                 | 0                                                                                                   | 714                                                                                                 | 75715                                                                                               | 38330                                                                                               |
| Hapur                                                                                               | 70                                                                                                  | 1460                                                                                                | 42929                                                                                               | 6600                                                                                                | 0                                                                                                   |
| Hardoi                                                                                              | 0                                                                                                   | 69850                                                                                               | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   |
| Hathras                                                                                             | 4717711                                                                                             | 3040525                                                                                             | 1892384                                                                                             | 2117137                                                                                             | 1499885                                                                                             |
| Jalaun                                                                                              | 0                                                                                                   | 0                                                                                                   | 0                                                                                                   | 3819                                                                                                | 0                                                                                                   |
| Jaunpur                                                                                             | 3464518                                                                                             | 3352435                                                                                             | 2089613                                                                                             | 2251590                                                                                             | 2223048                                                                                             |
| Kanpur Dehat                                                                                        | 567958                                                                                              | 893718                                                                                              | 499986                                                                                              | 384582                                                                                              | 358143                                                                                              |

| Kanpur Nagar      | 482430         | 789545         | 2776412        | 3564612        | 982462         |
|-------------------|----------------|----------------|----------------|----------------|----------------|
| Kheri             | 256            | 0              | 2959           | 66             | 93             |
| Lucknow           | 6392           | 21766          | 31663          | 9034           | 225817         |
| Maharajganj       | 378192         | 374237         | 208509         | 22636          | 30304          |
| Mahoba            | 0              | 34496          | 0              | 0              | 0              |
| Mainpuri          | 0              | 0              | 0              | 0              | 4675           |
| Mathura           | 599            | 91             | 266            | 0              | 274            |
| Meerut            | 14848445       | 11317599       | 7495646        | 10316036       | 10932799       |
| Mirzapur          | 101513314      | 83380405       | 76859614       | 85413588       | 64656622       |
| Moradabad         | 1321220        | 1057021        | 1213429        | 1268936        | 670157         |
| Muzaffarnagar     | 0              | 0              | 0              | 76866          | 175881         |
| Prayagraj         | 554090         | 461135         | 286767         | 43104          | 186739         |
| Rae Bareli        | 2846           | 0              | 0              | 0              | 0              |
| Rampur            | 5956           | 12327          | 552            | 6048           | 3361           |
| Saharanpur        | 1177           | 563146         | 1393221        | 616139         | 319            |
| Sambhal           | 21877          | 6945           | 0              | 7096           | 2509           |
| Sant Kabeer Nagar | 4206           | 5646           | 72258          | 17245          | 53706          |
| Siddharth Nagar   | 120            | 897            | 5604           | 2769           | 1882           |
| Sitapur           | 14736212       | 12164785       | 10812561       | 10961145       | 7921540        |
| Unnao             | 885991         | 916137         | 286374         | 187354         | 265427         |
| Varanasi          | 34004334       | 29424984       | 28103209       | 26830195       | 20711247       |
| Total             | 688827583      | 618968013      | 616529699      | 677829949      | 488252402      |
| Source:- DGCIS    | Source:- DGCIS | Source:- DGCIS | Source:- DGCIS | Source:- DGCIS | Source:- DGCIS |