Singh stated that the high input costs are forcing Indian exporters to lose against the products of other countries like China, Iran and Pakistan in the international market.
“The markets we are tapping at the moment are also accessed by countries such as Pakistan, Iran, China, etc. The challenge we are facing in India is with the cost of production. Production costs in all these countries are lower than India," Singh stated.
Singh also stated that a slowdown in India’s major export markets like the US and the European Union is making exporters explore newer markets like China, Russia, Latin America and Australia.
"China has a strong buying power at the moment, which is a reason we are exploring the market. Russia is also providing good opportunity for Indian carpet exports. Australia is demanding low-price carpets. This is an opportunity for India to understand new markets and explore them, as the US and EU markets are facing a slowdown," Singh said.
Singh also went on to state carpet exporters from India have not been significantly benefited by the fall in the value of the rupee, on account of buyers demanding large discounts.
Estimates by the CEPC indicate that carpet exports have grown by 17.91 percent during April-June 2012, to USD 204.26 million, as compared to April-June 2011. The exports of carpets from India has grown by 0.27 percent in June 2012 on a year-on-year basis, to USD60.15 million.
Source: SME Times