IMPACT OF ECONOMIC SLOWDOWN ON INDIAN CARPET INDUSTRY.

Indian Carpets are renowned the world over for their exquisite designs, subtle elegance, attractive colors & dexterous workmanship. It has a major share in the international markets and provides employment to millions of people in the country. More than 2 million rural artisans depend on this industry for their sustenance. Rs.35 billion worth handmade carpets are exported to various countries by small midsized carpet manufacturing & supplying units. India is today, by far, the largest exporter of carpets to the U.S. market. India?s share of the U.S. markets is 34%. The U.S. Market is the largest market for carpets & floor coverings and the most dynamic and demanding market. It can, therefore, be reasonably argued that Indian carpets are the best carpets in the world and have a huge potential for growth. India has around 25% share of the world market for handmade carpets & floor coverings. It is found that the once flourishing Indian Handmade Carpet sector has gone through tremendous pressure on account of the global Economic Slowdown of 2007-08. The major jolt that the industry faced other than the child labor issue was the Economic Slowdown of 2007-08. They have affected export potential, overall productivity and employment generating capability of the industry to a very large extent. The study tries to know impact of these major issues on whole potentiality, performance and working of the industry. The study period is divided into two segments, pre and post Slowdown Effect, from the period of Liberalization till 2011. For this purpose hypothesis and sub hypothesis has been developed to know the impact of Economic Slowdown on Export Performance and Production of the Indian Carpet Industry. The main objective of the study is to know the impact of Economic Slowdown on Export and Production of Indian Carpet Industry, to study the importance of carpet industry in developing economy like India, to study the challenges faced by Indian Carpet Industry and to frame out the necessary measures for the development of the industry.