"The growth rate of the carpet industry is likely to be lower than estimated earlier due to increased competition from traditional rivals Iran, Pakistan and China and new entrants such as Nepal who are eroding our market share," chairman of the Carpet Exporters Promotion Council Shree Dhar Misra said.
The government had estimated export growth of carpets to be around 10 per cent this year, but it could be around six-seven per cent only, he said.
India currently has only seven per cent global market share and earns around Rs 2,200 crore through export of carpets every year, he said and added that the inroads being made by neighbouring countries like Nepal was a worrying trend.
The country has a strong presence in woollen, silk and Jaipur carpets, but the trend being witnessed this year is that, while the Kashmir silk carpets and Jaipur carpets are doing well, exports of woollen carpets is going down on account of reduced demand, Misra said.
Exports of all carpets including woollen, silk, art silk and Jaipur carpets touched Rs 235 crore in July, a growth of 34 per cent as against Rs 167 crore in the previous month, he said.
He said the monthly growth in exports was expected to sustain as the peak season for exports of carpets was from September to February.
"The period between September to February is the peak season for exports of carpets especially to Europe and the US," Misra said.
Exports of carpets in the month of June had recorded a negative growth rate of 6.27 per cent at Rs 167 crore from about Rs 200 crore earned in May.
Justifying the negative growth rate of 6.27 per cent in June, Misra said that June was a lean period as shipments for the orders booked begin in July and reaches the markets only in September-October.
According to the month-wise export data compiled by the Carpet Export Promotion Council, exports during the four-month period from April, 2000 touched Rs 768.68 crore as against Rs 707.59 crore earned in the corresponding period last year registering a growth of around 8.6 per cent.
