Foreign trade has been considered as an engine of economic growth. The progress of a country to a large extent depends on their ability to trade relatively freely with the rest of world. The rapid export growth not only contributes directly to economic growth but it permits more imports and rapid modernization of production. It is necessary to understand India's Carpet Industry position in world trade and their promotional strategy for integrating India with the world trade. The paper will mainly analyse Indian Carpet Industry, Composition of Foreign Trade, Direction of Exports and Imports and Major Problems of India's Carpet Export Sector. Overall the industry specific export-import scenario, avenues and prospects, India's competitive advantages and disadvantages and suitable export strategies to boost the exports of carpet related products will be discussed.

Perspectives

by Amit KumarAbstract

Analysis of Export Potential and Promotional Measures for

Indian Carpets and Other Textile Floor Coverings

Keywords Export-Import Statistics, Indian Carpet Industry Analysis, Promotional Measures, SWOT Analysis, PORTER's Diamond Model.

Introduction Carpet industry is one of the oldest industries in India. Carpet weaving was brought to India by Mughals. Over the

period, the weaver has become an artist imbibing the magical exotic colors to the Indian carpets. Based on individualistic skill of the weaver, there is an aesthetic touch of the coloring and beauty in the carpets. Over the period, various clusters have emerged in the northern part of India. Initially, carpet weaving was done only at few centers. Due to several historical reasons and availability of resources, carpet manufacturing spread across the northern India. Major centers have been Bhadohi, Agra, Jaipur & Kashmir. During the last few decades, hand-tufted carpets have emerged as one of the major categories. Due to proximity to Home furnishing products, Panipat has emerged as another major center for carpet manufacturing.

There are various kinds of carpets available in India. These are Hand-knotted Woolen Carpets, Tufted Woolen Carpets, GABBE Woolen Carpets, Handmade Woolen Dhurries, Pure Silk Carpets, Staple or Synthetic Carpets.

Over the years, various carpet weaving centers have emerged in India. Each center has its own competitive advantage. These centers employ millions of people. Major belts are Bhadohi – Mirzapur and Agra belt in Uttar Pradesh. Jaipur-Bikaner belt in Rajasthan, Panipat belt in Haryana and Kashmir belt.

ITC-HS Code Classification: Carpets and other textile floor coverings Section 11, Chapter 57.ITC-HS Code for Carpet and Other Textile Floor Coverings :

31FIIB Business Review. Volume 1, Special Issue, October - December 2012