India asks China to lower duties on carpet exports

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SME Times News Bureau | 18 Feb, 2012
India Friday urged China to lower import duty on Indian carpets arguing that it would help in addressing the trade imbalance between two nations.

The issue was raised by Commerce and Industry Anand Sharma during a meeting with Governor of Qinghai Province of China, Luo Huining in New Delhi. "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," Sharma told the visiting official.

Indian handmade carpet Industry is ranked No. 1 in the international market having market share of around 35 percent 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.

Sharma said, "Of the total export of Handmade Carpets amounting to USD 653.86 million only USD 4.83 million are exported to China which is way below the potential that the two big and growing economies have."

He suggested that the exhibitors from India showcasing their products in exhibitions in China should be allowed duty free with a restricted value.

In order to have effective distribution of handmade carpets into China a bonded warehouse facility to should be provided in the Carpet City, Xining (Qinghai Province), Sharma said, adding that it will help the importers cater the domestic market.

We can have a study group or joint working group on carpet to advise both the governments, he suggested.

The export target the Indian handmade carpet industry is fixed for USD 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-materials.