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Carpet Industry is one among the industries prevailing in India since centuries. Indian
Carpet Industry has always been a crucial part of Indian export industry. Moguls brought
and introduced carpet weaving in India which survived and flourished greatly. Over the
period, ancient weavers has transformed into modern artist who imbibe the magical colours
to the Indian carpets. These artists bring aesthetic touch to the carpets by doing magic with
colours and provide carpets an unusual beauty and elegance. The study revealed that the
total carpet exported last year was worth Rs 2600 crores whereas the size of the domestic
market was condensed to about Rs 200 crores. Carpet holds a grace and recognition from
over centuries. Earlier, only a few centers in India were involved in carpet weaving but
slowly, various clusters have risen in northern part of India for the same purpose. Each
center has its own competitive advantage. These centers employ nearly millions of people
all across the country. Mojor belts of carpets include Bhadohi, Mirzapur and Agra belt in
Uttar Pradesh, Jaipur, Bikaner in Rajasthan, Panipat belt in Haryana and Kashmir belt.

Carpets are broadly classified into two categories, traditional and modern. Otherwise, Indian
manufacturers make carpets in various types, these are;

o Chainstich Rugs
o Tufted Woolen Carpets
o Hand-knotted Woolen Carpets
o GABBE Woolen Carpets
o Pure Silk Carpets
o Handmade Woolen Dhurries
o Staple or Synthetic Carpets

Each type has its own individuality in terms of design, look and the wool used in its
manufacturing. The variety in carpets caters to various needs of customers.

The distinct variety added to the carpets is inclusion of silk and cotton which are
innovatively mixing with the wool to give an attractive look to the carpets. Silk carpets are
considered high quality pieces and are comparatively high in price. Indian carpets are
fundamentally following the old popular patterns such as floral, rhomboids, animal patterns
and arabesques in its designs. These traditional Oriental styles are preferred even today.
However, Indian carpet industry seems to be highly influenced by western patterns and
designs which are giving a competitive edge to Indian traditional carpets, such as Chinese
patterns and Persian designs.

á


   

ndian Carpet Industry is a unique industry which is highly unorganized but lacks proper
channels. Somehow, it has managed to perform impressively in the past years. The industry
has made significant contribution in Indian exports till 1990s. What was there behind the
industry that drives the export? SWOT analysis brings forth the value drivers and tentative
blocks this industry has experienced and experiencing even today;

Strengths- Over the years, carpet industry has flourished in India due to availability of
artistic skills, cheap labour and low cost raw material, innovations in selling carpets and
flexibility in manufacturing all kinds of carpets.
Weaknesses- The industry's greatest weakness is its highly being unorganized. The carpet
exporters and manufacturers lack marketing channels. Indian suppliers suffer due to poor
infrastructure and internal competition, and lack professional approach and Intellectual
Property Rights.

Opportunities- Home furnishing market is moving towards Carpet industry, which results in
evolution of new carpet designs. It is used as a marketing tool, and gives opportunity to
provide stocking and warehousing services to various players in the market.

Threats- Industry is suffering a lot due to unhealthy competition exiting within it. If not
handled properly, current rebound in the industry may not be sustainable. Social evil such
as Child labor has strong bonding with the industry. Hence, the industry invites risk of
possible backlash on itself.

Carpet Industry in India has experienced a major change in recent years. The industry is
moving towards the emergence of new market and old existing market is saturated and lost
its identity. Low-end carpets manufactured in modern designs like hand-tufted carpets are
highly preferred by new customer base. Chinese industry is emerging as the biggest threat
to Indian carpet industry, in terms of pricing and volumes. However, innovative products
range with lower volume could be a success mantra for Indian Carpet Industry. Inefficient
coordination and ill management are what exist predominantly in the industry. Apart from
it, industry needs to consolidate on the activities such as quality standards, cost reduction,
better development of products and their on-time delivery to drive its growth.

A BRIEF HISTORY OF INDIA¶S CARPET INDUSTRY r

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Value in Rupees Crores" Value in U.S. Dollar Millionr

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Handmade woollen !!+! !" 1156.70 ./" 1" 255.25 *1, " .2/"1 +1"
tufted carpets

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18.00

Handmade Staple/ ++ ++" 69.59 .2/" " 14.65 !, *0" .2/"!1 *"
Synthetic Carpets

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1. Argentina 10.56 2.33 9.82 2.25 5.99 1.35 6.98 1.53

2. Australia 26.41 5.83 26.54 6.08 42.91 9.69 51.08 11.23

3. Austria 24.74 5.46 20.89 4.78 23.47 5.30 27.92 6.13

4. Belgium 11.67 2.58 20.85 2.48 28.52 6.44 33.80 7.43

5. Brazil 4.78 1.04 6.86 1.53 15.81 3.57 17.25 3.79

6. Canada 40.31 8.92 37.46 
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7. Denmark 18.90 4.17 19.50 4.47 21.93 4.95 26.09 5.73

8. Finland 14.73 3.25 15.25 3.49 15.96 3.60 18.74 4.12

9. France 48.92 10.82 49.10 11.23 47.93 10.82 56.96 12.52

10. Germany 614.61 135.86 571.24 130.74 585.39 132.22 698.22 153.52

11. Italy 25.57 5.65 23.77 5.44 38.25 8.64 45.56 10.01

12. Japan 48.92 10.82 49.50 11.33 54.79 12.37 65.04 14.30

13. Netherlands 19.18 4.23 19.18 4.39 30.79 6.95 36.38 7.99

14. Norway 6.39 1.42 7.50 1.72 7.53 1.70 8.81 1.93

15. Sweden 18.35 4.05 17.05 3.90 24.37 5.50 29.03 6.38

16. Switzerland 26.96 5.95 25.06 5.73 15.14 3.42 18.00 3.95

17. Spain 24.46 5.40 22.74 5.20 32.87 7.42 38.95 8.56

18. U.S.A. 1472.17 325.44 1368.28 313.18 1537.51 347.27 1833.02 403.04
19. U.K. 112.58 24.88 104.64 23.96 158.98 35.91 189.25 41.61

20. Others 213.53 47.20 184.35 42.21 364.57 83.46 423.81 93.19

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As per the circular No.3/2005-Cus. Dated 18th January, 2005, F No: 609/68/2004-DBK issued by Government of
India Ministry of Finance Department of Revenue on All Industry Rates of Duty Drawback, 2004-2005:

The new drawback rate for woolen carpets †57.01
is Rs.35.50/kg as against the existing rate of 7.8% of FOB value
subject to a maximum of Rs.300/sq. metre. For silk carpets †57.03
, the new drawback rate is Rs.150/kg as against
the existing rate of 8.2% of FOB value subject to a maximum of Rs.950/sq.metre. In view of abolition of excise duty
on cotton textiles, the drawback rate on cotton durries †57.02
has been reduced from 9% of FOB value subject to a
maximum of Rs.25/kg †central excise
to Rs.8/kg [Rs.3/kg †customs
Rs.5/kg †central excise
.

The Indian Carpet industry is governed by the regulations of the National Textile policy 2000.


 
r  r 2rr4 r
 †Courtesy AEPC

Perceiving the role of the Textile Industry in providing one of the most basic needs of people and the importance of its
sustained growth for improving quality of life.

Recognising its unique position as a self-reliant industry, from the production of raw materials to the delivery of
finished products, with substantial value-addition at each stage of processing; and its major contribution to the
country's economy.

Realising its vast potential for creation of employment opportunities in the agricultural, industrial, organised and
decentralised sectors & rural and urban areas, particularly for women and the disadvantaged.

Acknowledging the tremendous impetus provided by the Textile Policy of 1985 to the economy, resulting over these
years in compounded annual growth rates of 7.13% in cloth production, 3.6 % in the per capita availability of fabrics;
and 13.32% in the export of textiles; raising the share of textiles to 13% of value added domestic manufacturing of the
country; and to one third of the export earnings of the country.

Taking note of the new challenges and opportunities presented by the changing global environment, particularly the
initiation of the process of gradual phasing out of quantitative restrictions on imports and the lowering of tariff levels
for an integration of the world textile and clothing markets by end 2004, and the need for a focussed approach to
maximizing opportunities and strengths inherent in the situation.

Having studied the issues and problems facing the sector, the views of a wide range of stakeholders, and the
recommendations of the Expert Committee set up for this purpose.

Deciding to redefine the goals and objectives, focus on thrust areas and sharpen strategy in tune with the times.

 rr
 r

rr4 r r 
 r r !

' 

 Endowed as the Indian Textile Industry is with multifaceted advantages, it shall be the policy of the
Government to develop a strong and vibrant industry that canr

@ Produce cloth of good quality at acceptable prices to meet the growing needs of the people;

@ Increasingly contribute to the provision of sustainable employment and the economic growth of the nation;
and

@ Compete with confidence for an increasing share of the global market.

" 2' r

The objectives of the policy are to-r

@ Facilitate the Textile Industry to attain and sustain a pre-eminent global standing in the manufacture and
export of clothing;

@ Equip the Industry to withstand pressures of import penetration and maintain a dominant presence in the
domestic market;
 @ Liberalise controls and regulations so that the different segments of the textile industry are enabled to
perform in a greater competitive environment;

@ Enable the industry to build world class state-of-the-art manufacturing capabilities in conformity with
environmental standards, and for this purpose to encourage both Foreign Direct Investment as well as
research and development in the sector;

@ Develop a strong multi-fibre base with thrust of product up gradation and diversification;

@ Sustain and strengthen the traditional knowledge, skills and capabilities of our weavers and craftspeople;

@ Enrich human resource skills and capabilities, with special emphasis on those working in the decentralised
sectors of the Industry; and for this purpose to revitalise the Institutional structure;

@ Expand productive employment by enabling the growth of the industry, with particular effort directed to
enhancing the benefits to the north east region;

@ Make Information Technology †IT
, an integral part of the entire value chain of textile production and thereby
facilitate the industry to achieve international standards in terms of quality, design and marketing and;

@ Involve and ensure the active co-operation and partnership of the State Governments, Financial Institutions,
Entrepreneurs, Farmers and Non-Governmental Organizations in the fulfillment of these objectives.


r

r

 In furtherance of the objectives, the strategic thrust will be on:r

@ Technological up gradation

@ Enhancement of Productivity · Quality Consciousness

@ Strengthening of the raw material base

@ Product Diversification

@ Increase in exports and innovative marketing strategies

@ Financing arrangements

@ Maximising employment opportunities

@ Integrated Human Resource Development

 
r
 r
r

r

 The endeavor will be to -r

@ Achieve the target of textile and apparel exports from the present level of US $ 11 billion to US $ 50 billion
by 2010 of which the share of garments will be US $ 25 billion.
 @ Implement vigorously, in a time bound manner, the Technology Up gradation Fund Scheme †TUFS

covering all manufacturing segments of the industry;

@ Achieve increase in cotton productivity by at least 50% and upgrade its quality to international standards,
through effective implementation of the Technology Mission on Cotton;

@ Launch the Technology Mission on Jute to increase productivity and diversify the use of this environment-
friendly fibre;

@ Assist the private sector to set up specialised financial arrangements to fund the diverse needs of the textile
industry;

@ Set up a Venture Capital Fund for tapping knowledge based entrepreneurs of the industry;

@ Encourage the private sector to set up world class, environment-friendly, integrated textile complexes and
textile processing units in different parts of the country;

@ De-reserve the Garment industry from the Small Scale Industry sector;

@ Strengthen and encourage the handloom industry to produce value added items and assist the industry to
forge joint ventures to secure global markets;

@ Re-design and revamp, during the 10th Five Year Plan, the Schemes and Programmes initiated in the
handloom, sericulture, handicrafts and jute sector to ensure better returns for those belonging to the
disadvantaged categories, and the North East and other backward regions of the country;

@ Facilitate the growth and strengthen HRD Institutions including NIFT †National Institute of Fashion
Technology
on innovative lines;

@ Review and revitalise the working of the TRAs †Textile Research Associations
to focus research on industry
needs; and

@ Transform, rightsize and professionalise all field organisations under the Ministry of Textiles to enable them
to play the role of facilitators of change and growth.

SECTORAL INITIATIVES:

Within the framework of the Policy, the following sector - specific initiatives will be taken: r
r

r
 
r

The thrust will be on improving the availability, productivity and quality of raw materials at reasonable prices
for the industry. Necessary capabilities, including R & D facilities for improvement of fibre quality and
development of specialized fibres/yarns. The endeavor will be to make available different varieties †from
standard to specialized
of textile fibres/yarns of internationally quality at reasonable prices. The multi-fibre
approach of providing full fibre flexibility will be continued. Though cotton is expected to continue to be the
dominant fibre, special attention will be given to bring the balance between cotton and non-cotton fibres
closer to international trends.r
2r

 The primary aim will be to improve production, productivity and quality, and stabilize prices. The Technology
Mission on Cotton will be the instrument for achieving these parameters. Ministry of Textiles, Ministry of
Agriculture, Cotton growing States, farmers and industry associations will be actively involved in the
implementation of this Mission.r

 r#$ r

 Full fibre flexibility between cotton and man-made fibres and consumption of specialized man-made
fibres/yarns will be encouraged. Non-standard denierages in man-made filament yarn and spun yarn will be
phased out and BIS standards harmonized with world standards. Special attention will be given to the
production of fibres required for technical textiles.r

%r

 Focus will be on achieving international standard in all varieties of silk. Steps will includer

@ Improving Research & Development and the effective transfer of technology at all stages;

@ Considerably improving the production of non-mulberry varieties of silk;

@ Augmenting efforts for the spread of bivoltine sericulture;

@ Encouraging clustering of activities of reeling and weaving and strengthen linkages between the producers
and industry;

@ Periodically reviewing the import policy for raw silk taking into account the balanced interests of the
sericulturists as well as the export manufacturers.

r

 In order to augment availability of quality wool, the following measures will be initiated:r

@ Take up collaborative research projects with the leading wool producing countries of the world;

@ Encourage private breeding farms to increase productivity;

@ Promote private sector linkages for marketing of wool;

@ Establish pre-loom and post-loom processing facilities;

@ Take up an integrated development programme for angora wool.

" r
  Government recognizes the significance of jute in India's economy, especially for the Eastern and
Northeastern parts of the country. Realizing the problems of the jute economy and the need to make it more
competitive, a Technology Mission on Jute will be launched to achieve the following objectives:r

@ Develop high yielding seeds to improve productivity and acceptability in markets;

@ Improve retting practices to get better quality fibre;

@ Transfer cost effective technologies to the farmers;

@ Create strong market linkages;

@ Expand the scope for marketing of diversified jute products within the country and abroad.

r 2 r

 Despite the thrust given by the Textile Policy of 1985 to the spinning sector, resulting in considerable
modernization, 80 percent capacity utilization, and a 20 percent share of global cotton yarn exports, cotton
spinning still suffers the problems of over-capacity and of obsolete spindleage. This policy will continue the
effort to modernize and upgrade technology to international levels, and take the following steps, in cotton
spinning as well as the worsted woolen sectors:r

@ Encourage the spinning sector to continue to modernise;

@ Liberalise and encourage export of cotton yarn; and

@ Review from time to time the hank yarn obligation while ensuring supply of adequate quantity of yarn to the
handloom sector.


'r 2 r


Despite a 58% global share of looms, consisting of 3.5 million handlooms and 1.8 million power looms,
technology still remains backward. This sector, critical to the survival of the Indian textile industry and its
export thrust, will be rapidly modernized. Clustering of production facilities in the decentralized sector will be
encouraged to achieve optimum size and adopt appropriate technology. r

13. The Government will facilitate harmonious development of all the segments of the fabric-manufacturing
sector. The balanced growth of these sectors will be achieved based on their intrinsic strengths and capacity
to meet the demands and requirements of the domestic as well as international markets. Organized Mill
Industry

14. Efforts will be made to restore the organized mill industry to its position of pre-eminence to meet
international demand for high value, large volume products. For this purpose, the following measures will be
initiated:

@ Integration of production efforts on technology driven lines;

@ Encouragement to setting up of large integrated textile complexes;
@ Strategic alliances with international textile majors, with focus on new products and retailing strategies;
 @ Creation of awareness and supportive measures for application of IT for up gradation of technology,
enhancement of efficiency, productivity, and quality, better working environment and HRD.

15. Government recognizes that employment protection in a terminally sick industrial unit is neither conducive to
efficient allocation of scarce resources nor incremental employment generation. Hence, emphasis will be
laid on a pragmatic and rational exit policy with adequate protection of the workers' interests. Appropriate
measures will be taken, including review of the existing Textile Workers' Rehabilitation Fund Scheme, to
mitigate the problems of displaced workers, on whom the consequences of closure of private mills, with no
terminal or statutory benefits being given, have been serious.

16. The earlier policy of not taking over/nationalizing sick units will be continued. As regards the unviable Public
Sector Undertakings such as National Textile Corporation and National Jute Manufacture Corporation,
various options for strategic partnerships or privatization will be explored. Non-viable mills will be closed
down with provision for an adequate safety net for the workers and employees.

 r&r r

 The power loom sector occupies a pivotal position in the Indian textile industryHowever, technological
obsolescence, fragmented structure, low productivity and low-end quality products have stunted its growth.
The focus will therefore be onr

@ Technology up gradation;

@ Modernisation of Power loom Service Centres and testing facilities;

@ Clustering of facilities to achieve optimum levels of production;

@ Welfare schemes for ensuring a healthy and safe working environment for the workers.

&r r

 The handloom sector is known for its heritage and the tradition of excellent craftsmanship. It provides
livelihood to millions of weavers and craftsperson's. The industry has not only survived but also grown over
the decades due to its inherent strengths like flexibility of production in small quantities, openness to
innovation, low level of capital investment and immense possibility of designing fabricsGovernment will
continue to accord priority to this sector. Steps would be taken to promote and develop its exclusiveness for
the global market. Measures will include the following:r

@ Training modules will be developed for weavers engaged in the production of low value added items, who
may not be able to survive the competition consequent on globalization, with the objective of upgrading their
skills to enable them to find alternate employment in the textile or other allied sector;

@ Comprehensive welfare measures will continue to be implemented in close cooperation with the State
Governments, for better working environment and the social security of the weavers;

@ Effective support systems in research and development, design inputs, skill up gradation and market
linkages will be provided;
 @ The implementation of the Hank Yarn Obligation Order and the Reservation Orders issued under the
Handloom †Reservation of Articles for Production
Act 1985 will be reviewed keeping in mind the needs of
the handloom weavers.

@ Weavers Service Centers will be revamped in consonance with the contemporary trends, and, using
Information Technology for efficacy, their activities suitably dovetailed with activities of centers of design
excellence like NIFT and NID;

@ As merchandising and marketing will be central to the success of the handloom sector, the present package
of schemes for production of value added fabrics will be streamlined; innovative market-oriented schemes
will be introduced; and joint ventures encouraged both at the domestic and international levels. Brand equity
of handlooms will be commercially exploited to the extent possible.

Èr

 Hosiery knitting, growth of which accelerated during the last decade, primarily because of expansion of
hosiery into global fashion knitwear is expected to expand into the apparel and home furnishing sectors. In
this segment, the following measures will be taken:r

@ Review of the Policy of SSI Reservation for this sector;

@ Encouragement to Technology Up gradation and expansion of capacity; and
@ Introduction of support systems for commercial intelligence, design, and fashion inputs.

2
 r

 While machine-made carpet manufacturing in the mill sector will be guided by the policy framework for the
organized industry, the policy for hand knotted carpet sector will focus on sustained growth of exports and
welfare of weavers and their children. Encouragement will be given to the manufacture of products that
conform to and bear the 'KALEEN' mark of standards, with insistence on compliance with the provisions of
the Child Labor †Prohibition and Regulation
Act, 1986. Government intervention will be on technology up
gradation including indigenisation of machines; development of testing facilities; and use of natural dyes.
Adaptation of traditional motifs and promotion of brand image would constitute thrust areas.r


 
r

 The made-ups sector will be given the status and importance it deserves by virtue of occupying the highest
position in the textile value addition chain alongside garments. The approach for growth of this sector will be
to-r

@ Make available defect free and colour-fast processed fabrics;

@ Facilitate product development, production and marketing arrangements;
@ Place emphasis on quality and packaging; and
@ Expand facilities for machine dyeing and finishing of the yarn that is used for made ups from handloom
fabrics;

 2 r
r#r


Processing is the weakest link in the textile production chain, and results in loss of potential value. To bring
about the necessary improvementr

@ Government will encourage setting up of modern processing units, meeting international quality and
environmental norms;

@ The network of CAD/CAM, computerised colour matching and testing facilities will be expanded, particularly
in the clusters of the decentralised textile centres;

@ Research support will be extended in achieving ISO 9000 and ISO 14000 standards; and

@ Thrust will be given on development of eco-friendly dyes, including natural and vegetable dyes, and on
energy conservation.

2 r

 The role of this sector is poised for radical changes in view of the changes in the international trading
environment brought about by the rules and regulations of the WTO. The industry will be restructured as
follows:r

@ The office of the Textile Commissioner will focus attention on the development of the garment industry;

@ Garment industry will be taken out of the SSI reservation list;

@ Joint ventures and strategic alliances with leading world manufacturers will be promoted;

@ Schemes with necessary infrastructural facilities for the establishment of textile/apparel parks will be
designed with the active involvement of State Governments, Financial Institutions and the private sector;
and

@ Setting up of strong domestic retail chains to ensure easy availability of branded Indian products will be
encouraged.

"
 r
r

 The jute industry in India is beset with many problems, including competition from the synthetic sector, high
labor cost, obsolescence of machinery and uneconomic working. These factors have led to large-scale
sickness in the industry. r

25. The approach for the jute sector will be directed towards reviving the jute economy through supportive
measures covering research and development; technology up gradation; creation of infrastructure for
storage and marketing of raw jute; and product and market development activities for jute and diversified
jute products.

26. The Mandatory Jute Packaging Order will be reviewed from time to time in the interest of the jute farmers,
jute industry and the end-user sectors. Simultaneously, steps will be taken to enable the industry to become
cost and quality competitive in domestic and international markets based on the inherent strength of jute as
an environment-friendly fibre.
 27. Organizations like JMDC †Jute Manufacturers Development Council
and NCJD †National Center for Jute
Diversification
specifically set up for the overall growth and development of the industry will be appropriately
strengthened.

 22
r  r

 Considering the growing prospects for technical textiles world wide, priority will be accorded for their growth
and development. The focus will be on R& D efforts and augmentation of raw material production. Standards
will be set to facilitate adherence to stringent functional requirements.r

 r

 Textile exports play a crucial role in the overall exports from India. With the objective of increasing exports to
US $ 50 billion by 2010 from the present level of US $ 11 billion, the thrust will be on:r

@ Establishing a multi-disciplinary institutional mechanism to formulate policy measures and specific action
plans, including those relating to the WTO; and closely monitoring financing proposals;

@ Forging of strategic alliances for gaining access to technology;

@ Operating a brand equity fund exclusively for textile and apparel products, consistent with WTO norms.

@ Restructuring AEPC and other Export Promotion Councils play the role of facilitators and professional
consultants;

@ Developing infrastructural facilities in the predominantly textile and apparel export oriented areas in close co-
operation with State Governments and Financial Institutions and the private sector; and

@ Evolving a suitable mechanism to facilitate industry associations to deal with disputes under the various
agreements of the WTO.


2
#r  r

 Continued and focused attention will be given to handicrafts to enable the sector to increase both its
contribution to exports and its productive employment. Initiatives will include up gradation of skills, creation
of better work environment, design and technology intervention, development of clusters for specific crafts
with common service facilities, improvement in infrastructure, and market development.r

 r
r

rr
r
# 
 r 2 r!r

 Recognizing the vital role of IT in a progressively IT-driven global economic environment, as also its scope
in bringing about speed, efficiency and transparency in delivery systems, Government will play a proactive
role in promoting and facilitating adoption of IT in the textile industry and trade. Using IT as the platform, a
strong commercial intelligence network will be built up and suitable infrastructure for harnessing the potential
of e-commerce will be put in place.r


r 
2 r '  r


HRD assumes new significance with inescapable competition facing Indian textile products both in the
international and domestic markets. Government will support programs of organizations and institutions
engaged in HRD that address the professional manpower needs of the industry, as well as at the cutting
edge level of workers and shop-floor supervisors. Institutions will be encouraged to network and
synergistically co-operate amongst themselves. IT will become an integral part of HRD effort. r

33. In recognition of the pioneering role of NIFT, the Institution will be assisted to grow and progress on
innovative lines. The Nodal Centre for up gradation of Textile Education †NCUTE
will be helped to grow into
an autonomous National level TexEd Resource Centre. Information and expertise available in technical
institutes like IITs, TITs, and NID will be tapped for expansion of programmes.

#2
r
r#
2r

  r

 A growth-oriented fiscal road map will be drawn up, which has the advantage of predictability. The
parameters within which the multi-level duty structure and rates of levies will be reviewed and rationalised
will include the thrust on exports, the fiscal regime of major competing countries, WTO consistency, and the
need to keep prices at levels affordable to the largely poor consumers, who will continue to form the bulk of
the market. r

35. Funding requirements of different segments of the textile industry will be periodically reviewed and short-
term and long-term requirements spelled out, particularly of the handloom, power loom, handicrafts and
sericulture sectors. Innovative measures for tapping public and private sector funding will be worked out.
The endeavor will be to,

@ Encourage the private sector to take the initiative in participating in financing of specific needs of the textile
industry;

@ Set up a Venture Capital Fund in consultation with and involvement of financial institutions for the promotion
of talented Indian Designers, Technologists, innovative market leaders and e-commerce ventures;

 ' r 2
r# r  
 r #r r 2!r

 Organizations working under the Ministry of Textiles will be re-oriented, right sized and restructured to act as
facilitators instead of regulatory bodies, with the mandate and role of each being reviewed and redefined
over the next two years. Simultaneously, regulations and controls will be reviewed and progressively
reduced.r

37. Some of the specific changes will be:

@ The role of the Offices of the Textile Commissioner and Jute Commissioner will be moulded to serve the
developmental needs of the industry;

@ Export Promotion Councils will be restructured so as to become capable of devising dynamic export
strategies; promoting financing; disseminating information on various aspects of the WTO agreements;
extending legal advice to trade and industry in dispute settlements, etc.
 @ All the nine Textile Research Associations under the Ministry of Textiles will be revamped to give a market
and industry driven focus to their Research and Development support.

@ The role of the Central Silk Board will be restructured in keeping with the objective of participative
implementation in partnership with the State Governments and the private sector. The Government is
committed to providing a conducive environment to enable the Indian textile industry to realise its full
potential, to achieve global excellence, and to fulfil its obligation to different sections of the society. In the
fulfilment of these objectives, Government will enlist the co-operation and involvement of all stakeholders
and ensure an effective and responsive delivery system.

"

"

"

 r r ' & r&&

"

 r r ' & r&& r
 hand knotted carpet project was launched in 2001 to
establish a distinctive Indian character in carpet designs and simultaneously upgrade the technology. This
enabled better quality carpets combining the fresh designing skills with the age-old traditions. Many
partners including NIFT and CEPC came forward to make the task possible.

$(
'
The main objective of the project was to accelerate exports and establishing a brand name.

@ Develop and market new designs based on Indian ethnic themes.r

@ Involve importers in us markets and enhance the scope through road shows and participation in
fairs & exhibitions.
@ Introduce new tools and looms developed by Indian Institute of Technology, Delhi to improve
productivity and quality.
@ Encourage production of carpets based on vegetable dyes.

r(
r  r

@ NIFT & Designersr

@ IIT, Delhi
@ WRA, Mumbai
@ IICT, Bhadohi
@ CEPC & Exporters

 r2
r)r ' & r
The hand knotted carpets produced till now were based on traditional Persian patterns. The Indian
carpets, they did not have any uniqueness accept the variety in prices and quality. The designs and
patterns followed were the ones passed for generations with hardly any artistic changes in them. Further
more the market trends were changing and the changes had to be brought into the craft for its
sustenance and upliftment. All these aspects were dealt with in a professional way involving all partner
associations. New designs received very encouraging response in international market. This has led to
investment towards professional design experts by Indian exporters Indian More and more exporters
have started developing and marketing carpets having Indian identity After improving on these basic
aspects regarding quality, variety, technology and patterns, a strategy was developed for the marketing of
the products. First, establishing a brand name was important. For the purpose the task of promotion in
India. The finished carpets were displayed in various shows and fairs in India and then in U.S. and
Europe. For the project, IIT-Delhi developed improved looms, hand tools, washing, squeezing and drying
chambers. The Wool Research Association worked on the standardization of the extraction process of
dyes, making the venture eco-friendly and promoting awareness of the potential of natural dyes. The
Indian Institute of Carpet Technology has set up design studios and the Carpet Export Promotion Council
is into showcasing the collection worldwide.
"

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