The global landscape, marked by economic turmoil, soaring living costs in europe, and the ongoing Russia-Ukraine conflict, has dealt a severe blow to the export of woolen apparel—think luxurious shawls and elegant stoles—from punjab. These prized exports, classified under the readymade garment umbrella by the central government, have witnessed a precipitous decline.
Figures reveal a stark reality: exports plummeted from a robust $121 million in the 2014-15 fiscal year to a concerning $90 million in this current year, signifying a staggering 40% drop in Punjab‘s crucial woollen export market. Ludhiana and Amritsar, traditionally bustling manufacturing hubs for these beloved garments, are feeling the pinch. The downturn was even more pronounced in 2022-23, with exports reaching a mere $60.43 million. While there have been sporadic periods of recovery,the overall trend paints a worrying picture. This evolving market landscape has forced many prominent shawl manufacturers in these cities to embrace diversification, venturing into the production of suits, sarees, or knitwear to weather the storm and stay afloat in the ever-changing world of commerce.
Adding fuel to the fire, the recent hostilities between Israel and neighboring countries have significantly lengthened shipping routes to Europe, further impacting delivery times. As Commerce and Industry Minister Piyush Goyal recently pointed out, these extended routes via the Cape of Good Hope are sending ripples through global trade, including India’s vital exports.
The United Kingdom, Italy, Australia, France, Germany, the netherlands, Greece, Sweden, Portugal, and Belgium are among the biggest importers of stoles produced in Amritsar and Ludhiana. These two vibrant cities collectively churn out shawls and stoles worth an extraordinary Rs 6,000 crore, with exports accounting for Rs 1,500 crore. In the Gulf region, the UAE emerges as a major consumer of these sought-after items, according to Amritsar-based shawl manufacturer Gaurav Jain.He acknowledges that restoring pre-Covid export levels remains a distant hope, hindered by international conflicts and prevailing recessionary trends.
Amritsar’s thriving shawl industry contributes an estimated Rs 500 crore to exports out of a total annual turnover of Rs 2,500 crore. Ludhiana, the industry leader, boasts an annual turnover exceeding Rs 3,500 crore, with exports generating nearly Rs 1,000 crore.
How do geopolitical tensions influence the pricing and demand for Punjab’s woolen apparel in international markets?
Interview: Navigating the Challenges of Punjab’s Woolen Apparel Exports
Editor of Time.news: Today,we have with us gaurav jain,a prominent shawl manufacturer from Amritsar,to discuss the current challenges and future prospects of the woolen apparel industry in Punjab,especially in light of economic upheavals and international conflicts.Welcome, Gaurav!
Q: The woolen apparel market in Punjab has witnessed a notable drop in exports. can you quantify the scale of this decline and its impact on production in cities like Ludhiana and Amritsar?
A: Thank you for having me. Indeed, the numbers are striking; exports have plummeted from $121 million in the 2014-15 fiscal year to just $90 million currently—a staggering drop of 40%. Cities like Ludhiana and Amritsar,which historically thrived on manufacturing luxurious shawls and stoles,are feeling the repercussions. For instance, Ludhiana’s production is still robust, but the decline in export values has forced manny manufacturers to reconsider their product lines and adapt.
Q: How have international factors, such as the Russia-Ukraine conflict and recent tensions in the Middle East, affected your business?
A: These geopolitical tensions have created a chain reaction in global trade. Primarily, shipping routes to Europe have extended due to port closures and increased hostilities, which considerably lengthens delivery times. consequently,customers are facing delays,and our ability to meet demand is hindered. The Commerce Minister, Piyush Goyal, highlighted that these longer routes via the Cape of Good Hope are seriously affecting our exports, including those of woolen apparel.
Q: It appears that diversification in product lines is a strategy being adopted in this sector. Could you elaborate on how manufacturers are adjusting to these market conditions?
A: Absolutely.Many manufacturers in Ludhiana and Amritsar are pivoting towards producing suits, sarees, and knitwear, rather than solely focusing on shawls and stoles. This diversification allows us to tap into different market demands and minimize risk. Adapting our production to align with current market trends is essential to staying competitive during these uncertain times.
Q: With the current landscape, what are the prospects for restoring pre-COVID levels of export for woolen apparel?
A: Restoring those levels seems challenging, given the current international conflicts and economic downturns. As an example, while Amritsar’s shawl industry contributes about Rs 500 crore to exports annually, pre-COVID figures were much higher. We need to strategize collectively to stabilize exports, potentially focusing on strengthening ties with key markets like the UAE, which has been a significant consumer of our products.
Q: What advice would you offer to other manufacturers facing similar challenges?
A: Adaptability is key. Manufacturers should be open to diversifying their offerings and exploring new markets. Investing in digital marketing strategies to reach global customers online can also provide alternative sales channels. Lastly, maintaining strong relationships with current clients and suppliers can foster better dialog and adaptability, which is crucial in this volatile surroundings.
Q: Thank you, Gaurav, for your insights on the woolen apparel industry. Any closing thoughts?
A: Thank you for the opportunity.It’s essential that we remain resilient and innovative in these trying times. The woolen apparel sector has a rich heritage, and tapping into our potential through diversification and adaptability will help us weather this storm and emerge stronger.
Editor of Time.news: Thank you once again, Gaurav, for sharing your expertise.We hope for a brighter future for Punjab’s woolen exports.