The Kashmiri carpet industry is facing challenges including knowledge only being held by families, a lack of centralized organization, shortages in raw materials and skilled labor, and victimization by local contractors. To address these issues, the document recommends establishing recognition as a heritage craft, sharing knowledge through schools and colleges, removing intermediaries, providing government funds, organizing trade fairs, forming a centralized body, and encouraging weavers to explore new markets in cities like Lucknow, Jaipur, and Delhi.