Srinagar, April 28 -- The nearly two-month-long West Asia conflict has dealt a blow to Kashmir's carpet and handicraft sectors, with industry experts warning of a deeper crisis if tensions between the US and Iran intensify over the coming days.

Stakeholders report a global drying up of orders, leading to a 40% decline in business. Sheikh Ashiq, member of the Carpet Export Promotion Council (CEPC) and former KCCI president, said on Monday that the situation was a direct fallout of regional instability.

"Whenever war breaks out, our industry feels the impact immediately. Carpets and shawls are high-value products and in times of conflict, survival items take priority while luxury takes a backseat," he said.

Logistics and liquidity

The c...