(MENAFN- IMARC Group) Market Overview

In 2024, the India carpets and rugs market was valued at approximately USD 2.55 billion , and it is forecasted to reach USD 4.17 billion by 2033 , growing at a CAGR of 5.60% between 2025 and 2033. Key growth drivers include rising domestic and export demand, an expanding middle class with higher disposable incomes, growing popularity of traditional craftsmanship fused with contemporary design, the proliferation of e-commerce enabling broader market access, and increasing consumer preference for sustainable and eco-friendly materials such as jute, organic wool, and bamboo.

Key Highlights

• Market Size (2024): USD 2.55 billion
• Forecast (2033): USD 4.17 billion
• CAGR (2025–2033): 5.60%
• Major Growth Contributors:
  • Rising demand for handmade carpets from regions like Kashmir, Agra, and Bhadohi
  • Surge in eco-friendly product demand and sustainable manufacturing
  • E-commerce expansion offering customization and design variety

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How Is AI Transforming the Carpets and Rugs Market in India?

• AI-Driven Design Innovation: Artificial intelligence tools enable manufacturers to create trend-based designs using predictive pattern generation, blending traditional motifs with modern aesthetics.
  
• Demand Forecasting & Inventory Management: AI-powered analytics help predict market demand by season, geography, and style, optimizing production and reducing overstock.
  
• Automated Quality Control: Computer vision systems detect weaving defects, color inconsistencies, and finishing flaws at high speed, ensuring premium product standards.
  
• Personalized Online Shopping Experiences: E-commerce platforms integrate AI to recommend carpet styles, colors, and sizes based on user preferences, browsing behavior, and room visualization tools.

Key Market Trends and Drivers

• National Initiatives: Government programs like the National Handloom Development Programme and the 'India Handloom' brand, as well as export–promotion efforts by the Carpet Export Promotion Council (CEPC), support artisans and boost global competitiveness.
  
• Technology-Led Projects: Adoption of CAD-driven designs and automated looms boosts production efficiency while retaining craftsmanship.
  
• Sector-Specific Demand: High demand from residential, hospitality, and commercial interiors supports sales-luxury carpets remain in vogue.
  
• Sustainability Impacts: Brands like The Rug Republic use recycled materials and eco-friendly processes, aligning with growing environmental consciousness.
  
• Retrofit / Modernization Efforts: Towns like Bhadohi receiving GI and Export Excellence tags improve infrastructure and visibility; modern retail expansion helps access new urban markets.

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Market Segmentation

Type Insights:

• Tufted
• Woven
• Needle-Punched
• Knotted
• Others

By Distribution Channel:

• Mass Merchandisers
• Home Centers
• Specialty Stores
• Others

By Application:

• Residential
• Commercial

Regional Insights

• North India , particularly Uttar Pradesh and Rajasthan (regions like Bhadohi and Mirzapur), dominate manufacturing and exports.
  
• West & Central India , South India , and East India serve growing urban and regional niches with both traditional and modern styles.

Latest Developments in the Industry

• Tariff Advocacy by CEPC: The Carpet Export Promotion Council has urged the Indian government to impose reciprocal tariffs on machine-made carpets from Turkey and address U.S. trade-related challenges to protect Indian handmade exports.
  
• Bhadohi's Export Leadership & Infrastructure Push: Uttar Pradesh's Bhadohi district now accounts for over 60% of India's carpet exports. Government-funded infrastructure development-including improved roads, bridges, and medical and educational facilities-reinforces this region's handicraft economy, aligning with national goals for rural revitalization and export-led growth.

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