Intro: The pact has infused fresh energy among carpet manufacturers across the Bhadohi carpet hub, benefit 2.5 million weavers.
Bhadohi
A wave of optimism has swept through the carpet industry in Bhadohi following the recent India-US trade deal and a sharp reduction in tariffs on Indian products. Exporters in the globally renowned carpet hub say the development could boost business by up to 20 per cent, describing the moment as akin to Diwali for a sector that has struggled through months of uncertainty.
Local exporters have credited Prime Minister Narendra Modi for the breakthrough, praising what they described as his balanced diplomatic approach and sustained engagement with Washington. They also congratulated Union Ministers Piyush Goyal and Giriraj Singh for their role in supporting exporters and pushing for relief measures.
Under the revised trade arrangement, the United States administration has reduced tariffs on Indian carpet exports to 18 per cent and has indicated the possibility of lowering them further to zero in select sectors. Exporters say the move provides significant relief and restores competitiveness for Indian carpets in the crucial American market.
Bhadohi, often referred to as India’s carpet capital, supports lakhs of weavers and hundreds of exporting firms. The industry, however, suffered a severe setback after the US sharply raised import duties to as high as 50 per cent, including a 25 per cent penalty. The steep hike nearly brought exports to a standstill, forcing many exporters to scale back operations and leaving thousands of weavers facing reduced work and income insecurity.
Before the tariff increase, the US accounted for nearly 60 to 65 per cent of India’s total carpet exports. Demand from American buyers slumped dramatically after the duties were imposed, with many orders either cancelled or diverted to other countries.
Industry confidence began to revive at the start of 2026, when, following India’s diplomatic outreach, US President Donald Trump announced a reduction in overall tariffs to 18 per cent and hinted at further cuts. Exporters say enquiries from US buyers are gradually increasing, signalling a slow but steady recovery.
Factfile
* Indian carpets will now face lower US tariffs, dropping from 50% to 18%.
* This significant reduction offers substantial relief to the nation’s carpet industry.
* The move is expected to directly benefit approximately 2.5 million weavers.
* The Carpet Export Promotion Council expressed gratitude for the efforts leading to this positive development.
