Rugs of India manufacture Shaggys & Flat Weave Cotton Rag Rugs. Rugs of India offer hand-knotted carpets or floor coverings and home textiles. Shaggys & Flat Weave Cotton Rag Rugs are made from waste cotton yarn or from old apparel items which have been cut into strips. They are casual, chic and eco-friendly and are available in fashionable colours.