The ongoing **US-Israel-Iran war** in West Asia has badly affected the handicrafts and carpet industry of Kashmir. This industry is a mainstay of the valley’s economy, providing employment to millions of artisans. According to reports by exporters and **Kashmir Chamber of Commerce and Industry (KCCI)**, uncertainty in shipping, increased insurance costs, and market fears related to the **Strait of Hormuz** crisis and regional instability have led to a backlog of goods, orders cancelled, payments stuck, and artisans sitting idle.
The sector, which typically exports carpets and handicrafts worth ₹600-700 crore every year, has suffered huge losses. Pre-war business worth about ₹410 crore (especially during Ramzan/Eid) is stuck in the Gulf markets. According to reports, around **600 orders** have been cancelled, and no new orders are being received from traditional buyers in the Gulf, Europe and East Asia. Three major international exhibitions—one in **Denmark (Copenhagen)**, one in **UAE (Sharjah)**, and one in **China (Qinghai/Beijing)**—have been canceled or postponed. This has adversely affected the busiest export season of spring, when winter goods are put on display.
Handicrafts and carpet production directly or indirectly employ an estimated **3-4.5 lakh artisans and craftsmen**; Many of them come from rural and economically weak families. Finished goods like **pashmina shawls**, hand-woven carpets, papier-mâché and walnut woodwork are stuck in warehouses. Daily wage earners, weavers, dyers and artisans are sitting idle as exporters are unable to pay their dues to artisans due to pending payments from abroad (in some accounts around ₹400 crore is reported to be stuck). Exporter **Tariq Ghani** (or Ghani) said that if the conflict escalates, **more than 50,000 workers** could lose their jobs; He has appealed to Prime Minister Modi to help end this war. According to reports from showroom managers, not a single order has been received since the conflict began in late February 2026.
Due to this crisis, the jobs of about **2 lakh Kashmiris** working in Gulf countries (UAE, Saudi Arabia, Qatar) are also in danger, from where the remittances and sales network are very important for the economy of Kashmir. KCCI delegations have met **Directorate General of Foreign Trade (DGFT)** and local administration officials. **Kashmir Divisional Commissioner Anshul Garg** confirmed that concerns have been raised with the **Ministry of External Affairs (MEA)** and the Ministry of Commerce regarding assistance, including possible relaxation in credit and coordination with Indian missions abroad.
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