Diwali Sparks Fly in Bhadohi: US Tariff Slash Ignites Carpet Boom!

Bhadohi Carpet Hub Breathes New Life

The US tariff reduction to 18% from 50%—including a prior 25% penalty—has injected fresh optimism into Bhadohi's carpet industry, often called India's carpet capital spanning Bhadohi, Mirzapur, and Varanasi. Exporters faced near-collapse after the hike stalled 60-65% of exports tied to the US market, dropping shares from key buyers and slashing business by up to 14%. Now, with orders resuming and consignments clearing, stakeholders hail it as a Diwali-like revival, crediting Prime Minister Narendra Modi's diplomacy alongside Ministers Piyush Goyal and Giriraj Singh. The US even signals potential zero tariffs in select sectors, positioning Indian hand-knotted carpets against rivals like China and Pakistan.

 

Key Industry Highlights

Economic Ripple Effects

This deal accelerates Bhadohi's recovery, blending centuries-old craftsmanship with modern trade wins. Direct exports from the region hit Rs 4,500 crore, scaling to Rs 9,000 crore nationally including other clusters. Exporters like Piyush Barnawal and Aslam Mahboob foresee smoother US supply chains, renewed buyer talks, and employment surge for millions of artisans. As EU trade progress complements this, India's carpet sector eyes sustained export momentum in 2026.

 

Sources: IANS, Hindustan Times, Carpet Export Promotion Council via reports.