Carpet Exports Climbing Up

By Author: Aniket
Total Articles: 137
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Despite recessionary pressures, India's carpet exports rose by 8.5 percent in January 2010. The growth, needless to say, will be a beacon of hope to the small-scale units given that the upswing will continue during the coming few quarters.

The carpet export sector has been encountering tough times in 2008-09 and even in the first few quarters of 2009-10. However, January 2010 heralded good news for small-scale carpet exporters, with the sector clocking an impressive growth. The rise in growth of carpet exports has evoked a sense of optimism among the carpet exporters.

Things recovering on the export front

The Indian carpet sector registered a decent growth of 8.5 percent in January this year, thanks to demand finally picking up in the global markets. The revival in demand in the key western markets has come as a big relief for the SME carpet export units, dealing with plummeting sales and sliding bottom lines since the onset of global recession.

Talking ...
... to reporters on the sidelines of the inaugural function of India Carpet Expo 2010, Thiru Dayanidhi Maran, textiles minister, informed the rise in number of buyers in principal export destinations like the ‘European Union and the US as well as the increase in export orders for carpet have indicated recovery from recessionary pressures for the carpet export sector.

According to the data from Carpet Export Promotion Council (CEPC), India's carpet exports stood around US$413.30 million for April-January 2008-09, while it was projected at US$406.11 million for the corresponding period in 2009-10, a fall of 1.73 percent in total carpet exports over 1 year period. However, the sector has now started looking up.

The rise in exports recorded in January 2010, has given the much-needed push to the small-scale carpet export units, filling them with high hopes that trading conditions will improve in the upcoming days, informed a carpet exporter from Jaipur.

Although the sector is showing signs of revival, it would still take some time for SME carpet exporters to recover their losses fully and attain their pre-crisis growth levels.