Lok Sabha Question No. 568 (UNSTARRED), answered on 2026-02-03
Subject: Tariffs Impact on Carpet Manufacturing Industry
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Rahul Gandhi

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE AND INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 568 ANSWERED ON 03/02/2026

TARIFF IMPACT ON CARPET MANUFACTURING INDUSTRY

568. SHRI RAHUL GANDHI:

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether the Government is aware of the impact of 50% tariffs imposed by the US on he carpet manufacturing industry, if so, the details of loss of revenue and employment and if not, the reasons therefor;
- (b) whether the Government is aware of the comparative U.S. tariffs on other countries that are major exporters of carpets and if so, the details thereof;
- (c) the details of export incentives for the carpet industry over the past five years and if there has been a decrease, the reasons therefor;
- (d) whether any activities have been undertaken to diversify export destinations for Indian carpets since imposition of U.S. tariffs, if so, the details thereof;
- (e) whether  the  Government  proposes  to  announce  any  relief  package,  subsidies,  or financial support to safeguard the livelihoods of weavers and artisans; and
- (f) if so, the details and timelines thereof, if not, the reasons therefor?

## ANSWER

वाणिज्य एवं उद्योग मंत्रालय में राज्यमंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY

(SHRI JITIN PRASADA)

- (a) The  Government  of  India  continues  to  monitor  and  promote  India's  exports  in  the Carpets sector. Details of India's export performance for export of Carpets to the world in the years 2023, 2024 and 2025 for the period April to December are provided below:

Values in USD Million

|   April-Dec 2023 |   April-Dec 2024 |   April-Dec 2025 |
|------------------|------------------|------------------|
|          1037.93 |           1149.5 |          1104.44 |

Source: DGCIS

- (b) The  tariffs  in  the  U.S.  are  cumulative  in  nature  and  comprise  the  applicable  MostFavoured-Nation (MFN)/ Preferential tariff as well as additional duties imposed under U.S. domestic laws, including measures taken citing national security, national emergency etc and any applicable anti-dumping and countervailing duties.  Consequently,  the  total  tariff  varies

significantly depending on both the product and the country of origin. Information on these tariffs  and  duties  may  be  accessed  through  relevant  official  U.S.  government  websites, including:

https://www.usitc.gov/harmonized\_tariff\_information https://www.federalregister.gov/

https://www.cbp.gov/trade

(c)  to  (f)  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:

## 1. 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, outcomebased, and adaptive mechanism that can respond swiftly to global trade challenges and evolving exporter needs.

The Mission will operate through two integrated sub-schemes:

- i. 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.
- ii. 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.

The Mission is designed to directly address structural challenges that constrain Indian exports, including:

- limited and expensive trade finance access,
- high cost of compliance with international export standards,
- inadequate export branding and fragmented market access, and
- logistical disadvantages for exporters in interior and low-export-intensity regions.

Under EPM, priority support will be extended to sectors impacted by recent global tariff escalations, such as textiles, leather, gems & jewellery, engineering goods, and marine products.  The  interventions  will  help  sustain  export  orders,  protect  jobs,  and  support diversification into new geographies.

2. 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.
3. Trade Relief Measures :The Reserve Bank of India (RBI) has also initiated trade relief measures  for  eligible  affected  exporters  including  provision  for  debt  repayment moratorium and extension of tenor for export credit.
4. 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.

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