Punjab: Hostile activities affect export of shawls to US
Punjab: The economic crisis, rising cost of living in Europe and the Russia-Ukraine war have hit exports of woollen apparel, including shawls and stoles, from Punjab to Europe, the US and Canada. Exports of these items, which fall under the readymade garment category by the centre, fell from $121 million in 2014-15 to $90 million this fiscal. This represents a drop of nearly 40 per cent from Punjab, where Ludhiana and Amritsar are major manufacturing hubs. Exports stood at $60.43 million in 2022-23. Shawl manufacturers said exports rose in a few years, but in the long run the trend is going downwards. This has forced many major manufacturers of shawls in these cities to diversify into manufacturing suits, saris or knitwear to survive in a fast-changing world of commerce.
Hostilities between Israel and its neighbouring countries have increased travel time to Europe by sea due to extended shipping routes. Recently, Commerce and Industry Minister Piyush Goyal highlighted the impact of expanded shipping routes through the Cape of Good Hope on global trade, including Indian exports. The UK, Italy, Australia, France, Germany, Netherlands, Greece, Sweden, Portugal and Belgium are the major buyers of stoles manufactured in Amritsar and Ludhiana. Together they make shawls and stoles worth about Rs 6,000 crore and their combined exports are Rs 1,500 crore. In the Gulf, UAE is the major consumer of these items, said Gaurav Jain, an Amritsar-based shawl manufacturer. He said restoration of pre-Covid shawl exports remains a distant dream due to international conflicts and recessionary trends. Out of the Rs 2,500 crore Amritsar shawl industry, the share of exports is about Rs 500 crore. Ludhiana remains the leader with an annual turnover of over Rs 3,500 crore, including exports worth about Rs 1,000 crore.
