The carpet industry is one of the most rapidly growing traditional industries in India. This is a handicraft and cottage industry that provides jobs right on the doorstep of more than 100,000 workers, belonging to economically backward class of society. In the global carpet scenerio, the market share of Indian carpets is expanding rapidly. Jaipur and its adjacent districts are the major manufacturing clusters in Rajasthan that share a substantial part (15%) of total carpet manufacturing from India. In fact Rajasthan carpets industry is more quality sensitive hence designs are one of the critical elements of competitiveness. Rajasthan carpet Industry grew till 1995, but saturation in designs and increasing cost made it difficult to compete. Results of technology implementation were remarkable in terms of revenue and other operational aspects. In a short period of four years, revenue grew more than five fold. Enhancing the competitiveness has been the major positive effect of ICT adoption in the Rajasthan carpet industry. Both the software creator and the government agencies played a catalysing role in supporting the technology adoption process