1. Linkages between Trade,Development and Poverty Reduction
Suprita Jayaram
Prashmita Ghosh

2. Perception Survey Findings
Carpet Industry of India
Weaving growth of rural economy

3. Overview of the Industry
Carpet Weaving, one of the oldest industries in India
Dates back to the 16th century( 1580 AD)
Spread over some specific belts in India--Mirzapur-Bhadohi, Agra,Jaipur and Kashmir
Highly labour intensive, forming a considerable part of the handicraft industry
Provides livelihood to about 2.5 million artisans and earns a significant foreign exchange

4. How the Industry Works Raw Materials : Wool, Silk, Cotton
Indian Carpet Industry – primarily wool based.
Wool imports from- Australia, New Zealand and Morocco
India- Bikaner belt major supplier of Wool

5. Dyeing Industries:
Chemical Dyes
Natural Dyes—Indigo plant, cochineal insects, fruit, wild rose and other indigenous products
Dyeing processes
Power driven mills
Traditional dyeing mills

6. The finishing stages
Weaving
Latexing/Washing
Packaging
Export

7. Carpet Export Promotion Council (CEPC)
Set up in India in 1982
Headquartered in New Delhi with centres around the carpet belt
Advises and assists the government on export promotional measures
Identifies potential markets, conducts promotional fairs, buyer-seller meet etc
Provides financial assistance to new exporters

8. CEPC (contd.)
CEPC has taken up initiative to establish warehouses in USA and other countries for focussed selling
CEPC provides Market Development Assistance (MDA) scheme
CEPC arranges workshops with bank officials and exporters
The objectives coincide with that of the Foreign trade policy, (1)double India’s percentage share of global trade within the next 5 years, (2) act as an effective instrument of economic growth by giving thrust to employment generation in the rural areas

9. Employment Scenario
Highly labour intensive – providing employment to 2 million
Rural based cottage industry, providing gainful employment to the artisans

10. Future Employment and Export Target
Year
Employment
(million)
Exports
(USD billion)
2005
2.00
0.60
2010
3.25
1.20
2015
5.00
2.40
Source: Carpet-e-world 2006

11. Problems of the Carpet Industry
Changing businessmen priorities
Change in Consumer priorities abroad
Unethical business practices and its chain effect
Problem of advances to weavers/loom owners
Dishonouring orders by clients
Child Labour
Overall depression in global markets

12. Recommendations from Stakeholders
Publicising the real value by emphasising the cultural, unique and aesthetics aspects.
Creating innovative designs for promotion and increased competency
There should be prompt availability of loans
Media should be optimally used for effective marketing

13. Conclusion
With appropriate efforts by the CEPC, government officials, the production/ exports problems of the manufacturers/ exporters in this industry can be addressed to solve the rural employment problems