Export order rises for garment before festivals
Export orders for food, handicraft and readymade garments have risen at least 15% year-on-year owing to the upcoming festival season.
for food, handicraft and readymade garments have risen at least 15% year-on-year
owing to the upcoming festival season. According to traders, there is a higher
demand for Indian sweets and snacks during Diwali in the United States. The
overall snacks, sweets and confectionaries segment has seen a 4-5% increase in
export orders, they said.
merchandise exports in the April-September period amounted to $197.89 billion.
Exporters said most of the demand is coming from the US, where Covid-19 cases
have declined and economic activity is picking up faster than in the UK and the
However, much of
the increase in export orders can be attributed to pent-up demand, according to
exporters. Since stocks were low earlier, even a slight movement in demand
looks like a huge jump, they said.
increase in ocean freight and manufacturing costs due to higher energy and
metal prices has squeezed profit margins, said exporters. A Sakthivel,
Export Promotion Council, said that, the US is doing better than the
UK and EU and there is a 15-20% rise in orders especially from mid-fashion
brands than the high-fashion ones. The US banning the entry of all products
using cotton from Chinaâ€™s Xinjiang region and high prices of raw material there
due to power crisis have made buyers turn to India, said exporters.
The Economic Times
Image Source: Google Images