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Export council for reciprocal tariffs on machine-made carpets from Turkiye

Export council for reciprocal tariffs on machine-made carpets from Turkiye

Time of India15-05-2025

Varanasi:
Carpet Export Promotion Council
(CEPC) has urged govt to impose reciprocal tariffs on
machine-made carpets
imported from Turkiye to ensure fair protection for Indian carpets in the domestic market. CEPC also discussed how tariffs imposed by Trump administration on Indian handmade carpets weakened their global competitiveness.
Talking to TOI on Thursday, CEPC director Shri Sanjay Kumar Gupta said, "With demands including imposing reciprocal tariffs on import of Turkiye's machine-made carpets, a delegation of the council led by its chairman Kuldeep R Wattal met minister of state for commerce Jitin Prasada, in the presence of Bhadohi MP Vinod Bind in New Delhi on Wednesday. It was a crucial meeting as many important issues of the carpet industry were pressed.
"
"We urged govt to step ahead for imposing reciprocal tariffs on machine-made carpets imported from Turkiye to ensure fair protection for Indian carpets in the domestic market," said Gupta, adding that the reason behind this demand was ground realities of bilateral carpet trade between India and Turkiye. The basic customs duty on machine-made carpets and other textile floor coverings from Turkiye imported into India is 20%, he said, adding, however, Turkiye imposes a 46% duty on import of Indian carpets.
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CEPC sought immediate attention of govt towards bilateral carpet trade with Turkiye in view of the fast-dropping figures of carpet export to Turkiye. In 2015-16, India's carpet export to Turkiye was 17.08 million dollars, but since 2016-17, it started dipping, and in 2024-25 (till Jan end), this figure was 6.5 million dollars.
However, the import figures show a rise in the import of carpets and other floor coverings from Turkiye.
In 2015-16, the value of the import of carpets from Turkiye was 4.20 million dollars. The imports went up to 13.97 million dollars and 10.01 million dollarsin 2022-23 and 2023-24, respectively, and in 2024-25, it was 8.18 million dollars, said council office-bearers. CEPC also wanted immediate intervention of govt on the issue of tariffs imposed by the Trump administration on Indian handmade carpets, as it is increasing the threat of weakening their global competitiveness, said Gupta, referring to the trade figures.
Except for 2021-2022, when the carpet export's value was 2232 million dollars, the annual export value since 2015-16 to 2024-25 remained between 1700 million dollars and 1800 million dollars. Over 50% of exports, especially of handmade carpets, are done to the USA, where the trend of export remained above $1000 million since 2020-21 till 2024-25. After the USA, the major importers of Indian carpets are European countries, including Germany, Canada, the UK, Australia, South Africa, France, Italy, and Brazil.
CEPC members are not only worried because the reciprocal tariff imposed by US President Donald Trump will increase the cost of carpets for American buyers, but other major exporters of carpets, including Turkiye, which have a lower US tariff compared to India, will gain an advantage. Gupta said the cottage industry of carpet weaving generates employment for not only thousands of weavers and artisans but also farmers, who work on looms part-time for weaving.
CEPC also raised the issues of the revival of the interest subvention scheme and highlighted the impracticality of the provision under Section 43B(H) of the Income Tax Act, which mandates payments to MSMEs within 45 days. They also requested the allocation of separate HS codes for handmade and machine-made carpets, which would enhance global transparency and give distinctive recognition to Indian craftsmanship.
The delegation included Ashfaque Ahmad Ansari, Umesh Shukla, Sattar Ansari, Aseem Ansari (Bobby), Sadiq Ansari and Shahid Ansari.

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