Christmas-themed exports from India to the US and Europe have experienced a significant decline, dropping by 10-15% as the ongoing West Asia crisis impacts global trade dynamics. Exporters are grappling with increased costs and subdued demand, particularly in the US market.
Impact on Export Volumes
Exporters like Jozie Malik, founder of Wood Art in Saharanpur, report a drastic reduction in orders. "Demand is down by more than 50%," Malik stated, highlighting that the business, which is equally split between the US and Europe, has seen nearly 40% of its US business cut off.
- FY26: $121.4 million
- FY25: $119.9 million
- FY24: $111.2 million
Rising Costs and Supply Chain Challenges
The crisis has led to increased production costs, with aluminium prices rising to ₹340-360 per kg from ₹180 per kg. Vijaykumar Agarwal, chairman of the Textile Export Promotion Council, noted a 30-40% rise in yarn and polyester prices, further complicating the situation for exporters.
"People are worried because of a 30-40% rise in yarn and polyester prices," said Agarwal.
Trade Policy Developments
Despite these challenges, A Sakthivel, chairman of the Apparel Export Promotion Council, remains optimistic about future prospects. He pointed out that Free Trade Agreements (FTAs) could provide a boost, potentially offering India duty-free access similar to Bangladesh and Vietnam.
Future Outlook
Exporters are hopeful that inquiries will translate into orders by June, as the holiday season approaches. However, the current geopolitical tensions and economic uncertainties continue to pose significant risks to trade stability.
| Year | Export Value (USD million) |
|---|---|
| FY24 | 111.2 |
| FY25 | 119.9 |
| FY26 | 121.4 |
Conclusion
The decline in Christmas orders underscores the broader impact of geopolitical tensions on international trade. As exporters navigate these challenges, the role of trade agreements and cost-sharing mechanisms will be crucial in stabilizing the sector.
