Should New Export-Oriented Rug and Carpet Factories Using Machines Be Set Up Near the Ports? Advantages and Disadvantages

Abstract

This paper examines whether new export-oriented, machine-intensive rug and carpet factories in India should be located near ports rather than in the traditional inland carpet belt. It compares the historical dependence of carpet production on hereditary weaving skills with the changing requirements of mechanized, synthetic-fiber production. The analysis considers raw-material sourcing, Turkey's machine-made carpet industry, inland transport costs, industrial land readiness, infrastructure, labor availability, and access to export and domestic markets. It identifies a stronger locational case for the Surat-Hazira-Navsari corridor in Gujarat for machine-woven and robo-tufted factories using polypropylene and polyester. Proximity to yarn suppliers, port connections, developed industrial land, and shared infrastructure may offer advantages, while higher wages and workforce recruitment and training remain disadvantages. For wool-based, hand-finished, and design-led production, the established skills and ancillary networks of inland clusters remain important. The paper concludes that location decisions should reflect production technology, material inputs, and workforce requirements, with efficient port connectivity carrying more weight than literal coastal adjacency.