Hostilities hit export of shawls to Europe, US

The economic crisis, escalating cost of living in Europe and the Russia-Ukraine war have hit the export of woollen apparel, including shawls and stoles, from Punjab to Europe, USA and Canada.

The export of these items which are bracketed under the readymade garment category by the Centre came down from $121 million in 2014-15 to $90 million this fiscal. This indicates about 40 per cent decline from Punjab where Ludhiana and Amritsar are major manufacturing hubs. The export was $60.43 million in 2022-23. Shawl manufacturers said in some years, the export did pick up but in the longer run, the trend is going downwards. This has compelled several major manufacturers of shawls in these cities to diversify into manufacturing of suits, sarees or knitwear to survive in the fast-changing world of commerce.

The hostilities between Israel and its neighbouring countries have increased the travel time to Europe by sea due to extended shipping routes. Recently, Commerce and Industry Minister Piyush Goyal highlighted the impact of extended shipping routes via the Cape of Good Hope on global trade, including Indian exports.

UK, Italy, Australia, France, Germany, Netherlands, Greece, Sweden, Portugal and Belgium are major buyers of stoles being manufactured in Amritsar and Ludhiana. Together, they manufacture shawls and stoles worth about Rs 6,000 crore and their combined export stands at Rs 1,500 crore. In the Gulf, UAE is the major consumer of these items, said Amritsar-based shawl manufacturer Gaurav Jain. He said restoration of the pre-Covid shawl export remained a distant dream due to international conflicts and recessionary trends.

The share of exports out of the Rs 2,500-crore Amritsar shawl industry stands at nearly Rs 500 crore. Ludhiana remains the leader with over Rs 3,500 crore annual turnover, including about Rs 1,000 crore export.