India Handmade Carpet & Rug Market Size, Share & Trends Analysis Report By Tufted, Needle Punched, Woven), By Material (Wool, Cotton, Polyester, Polypropylene), By End Use (Residential, Commercial), And Segment Forecasts, 2025 - 2030

India Handmade Carpet & Rug Market Growth and Trends

The India handmade carpet & rug market size is expected to reach USD 89.2 million by 2030, and is projected to grow at a CAGR of 8.0% from 2025 to 2030, according to a new report by Grand View Research, Inc. Modern Indian consumers are increasingly valuing quality over quantity. With rising disposable incomes and a growing awareness of global interior design trends, urban homeowners are gravitating towards bespoke, artisanal products that carry a story. Handmade carpets and rugs, often woven with regional patterns and traditional motifs, offer a unique aesthetic that mass-produced alternatives cannot replicate. Eco-consciousness is also playing a critical role. Buyers are choosing products made with natural dyes and sustainable fibers such as wool, jute, and cotton, aligning their purchases with personal values around environmental responsibility.

Additionally, the influence of social media and digital platforms has amplified the appeal of handcrafted items. Interior influencers and design experts often highlight the timeless appeal of handmade rugs, driving aspiration and demand among younger audiences. This demographic is also more inclined to support local artisans and businesses, creating a meaningful connection between craftsmanship and community upliftment.

Furthermore, on the manufacturing side, there has been a significant shift towards innovation and inclusivity. Carpet manufacturers are investing in skill development programs and adopting technology to support weavers without compromising the handcrafted essence of their work. Design studios and export houses are collaborating directly with rural artisans, ensuring fair wages, ethical labor practices, and creative freedom. The focus is not only on preserving traditional weaving techniques but also on adapting them to suit contemporary global tastes, an approach that has opened up newer international markets.

Indian carpet clusters such as Bhadohi, Jaipur, and Srinagar have seen renewed interest from global buyers, especially after the recognition of Geographical Indication (GI) tags, which protect and promote region-specific crafts. The integration of modern design with traditional techniques has allowed manufacturers to cater to both domestic and international customers, further boosting the industry's credibility and value.

India Handmade Carpet & Rug Market Report Highlights

• The handmade hand-tufted carpets & rugs accounted for a significant revenue share in 2024, due to their quicker production process and lower cost compared to hand-knotted varieties. Their balance of quality, affordability, and design flexibility made them popular among domestic and international buyers.
• The wool handmade carpet & rug held a substantial revenue share in 2024, due to their durability, natural insulation properties, and eco-friendly appeal. Their luxurious texture and long-lasting quality also drove strong demand both locally and in export markets.
• Commercial end use for handmade carpets & rugs is expected to grow significantly over the coming years, due to increasing demand from hotels, offices, and retail spaces seeking premium, durable, and eco-friendly flooring solutions. This growth is supported by expanding urban infrastructure and a growing emphasis on luxury interiors in commercial settings.