Fashion
Heritage-rich Indian carpets poised to tap EU luxury interiors: CEPC
The agreement places strong emphasis on labour-intensive sectors, including handmade carpets, rugs, handicrafts and textile products. For the carpet industry, the removal of tariff barriers is expected to significantly enhance competitiveness in Europe, a market where duties earlier constrained export growth and price positioning.
The India-EU FTA is set to transform India’s handmade carpet industry, with CEPC highlighting tariff elimination as a key enabler for access to premium European markets.
Preferential access is expected to boost price competitiveness, support MSMEs and artisan livelihoods, and reinforce India’s positioning in luxury home décor and sustainable, heritage-led sourcing, CEPC said.
India’s handmade carpet sector, rooted in long-established clusters such as Bhadohi, Mirzapur and Varanasi in Uttar Pradesh, Panipat in Haryana, Jaipur and Bikaner in Rajasthan, and Srinagar in Jammu & Kashmir, has shown resilience despite prolonged global headwinds. With carpets now covered under preferential access, exporters anticipate improved market penetration and renewed momentum across these regions.
CEPC noted that the benefits of the FTA will extend beyond large exporters to MSMEs and rural artisan units engaged in weaving and finishing activities. Easier access to the EU market is expected to boost price competitiveness, strengthen integration with European supply chains and support employment generation, particularly for women and youth in traditional carpet-making clusters. The council also highlighted that Indian carpets with their strong heritage value and design appeal are well positioned to cater to premium home décor and luxury interiors segments in Europe.
Captain Mukesh Kumar Gombar, Chairman, CEPC, said, “The India-EU FTA represents a transformational milestone for our handmade carpet sector. Eliminating tariffs will unlock expanded access to Europe’s large and sophisticated markets, allowing Indian carpets to compete more effectively on value, quality and sustainability. This benefit will be felt across carpet clusters in Bhadohi, Mirzapur, Varanasi and Srinagar, empowering artisans and micro and small exporters to scale new heights of global demand.”
Aslam Mahboob, Vice Chairman, CEPC, added, “With preferential market access under the India-EU FTA, the handmade carpet industry can now look forward to enhanced export prospects, improved price realisation, and deeper engagement with European buyers. This will reinforce India’s position as a trusted supplier of high-quality, handcrafted rugs and carpets and as a partner of choice for sustainable and ethical sourcing.”
CEPC reaffirmed its commitment to working closely with the government and industry stakeholders to ensure effective implementation of the agreement and to maximise its benefits for the handmade carpet sector. The council also noted that the FTA aligns with India’s broader India@2047 vision of building a resilient, competitive and inclusive economy, while creating sustainable growth opportunities for traditional and labour-intensive industries such as handmade carpets and rugs.
Fibre2Fashion News Desk (CG)