India Seeks Lower Duty on Carpet Exports to China

Indian exporters want Beijing to lower the import duty on carpets from over 20 per cent at present to 5 per cent.

The two leaders also discussed ways to boost exports of rugs and floor coverings to China.

Sharma, according to an official present in the meeting, said import duty on carpet exports to China is high and as a result makes such items too expensive in their markets.

The Governor on his part assured Sharma he will take up the import duty issue with the concerned authorities.

Huining is heading a 22-member business delegation to India to explore opportunities for importing carpets.

Of India's total carpets exports worth $ 653 million during 2010-11, China accounted for about 8 per cent.

Since China concentrates mainly on machine made carpets due to labour shortage, the official said there is a large demand for Indian handmade carpets in that country.

Sharma said carpet exports to China is way below the potential for imports from India.

The official, referring to the discussion between Sharma and Huining, said the Governor said his country sees carpet imports as one of the ways for bringing balance in trade between India and China.

The bilateral trade between the two countries had hit a record $ 73.9 billion in 2011, but the ballooning trade deficit in Beijing's favour rose to over $ 27 billion, raising concern among Indian authorities. Efforts are being made to improve market access for these Indian products in China.

According to the official, Sharma said there is a need for setting up a joint working group to study ways for improving the carpets exports to China.

In the first 10 months of 2011-12, India's overall carpets exports grew by about 21 per cent year-on-year to $ 608 million.

The US and Europe together account for 60 per cent of India's carpet exports.