KOLKATA: With the Western economy back on the revival track, the New Year is set to ring in glad tidings for India's exports. Buoyed by a huge demand for gifts in the Christmas-New Year season in the US and Europe, gems and jewellery, handicrafts and apparel are showing a significant uptrend in exports. Global retailers such as Wal-Mart, Macy's, Tesco, Marks & Spencer too have upped their sourcing from the country this festive season.
The world's largest retailer, Wal-Mart, has upped its sourcing from India for the New Year season. It sources products such as home textiles like towels, shower curtains and bedding sheets, apparel, leather accessories, fine jewellery, and houseware from India.
When contacted, Wal-Mart senior director (international corporate affairs) Kevin Gardner said: "India continues to be an important market for Wal-Mart Global Procurement. Our suppliers in India have provided high quality products at competitive prices."
Tesco, which sources products worth £180 million from India, too has increased sourcing for products such as textiles and some hardlines, including glassware, a company spokesperson said.
Federation of Indian Export Organisations (FIEO), India’s apex body of export promotion organisations, estimates that merchandise exports would touch $14-billion mark in December, the second consecutive month of growth. It also estimates that export of gift items from India for the New Year has shot up by around 20%.
Orderbook positions too, say exporters, are showing a healthy growth, as retailers in the West are beginning to build up their inventories after a long lull. "Since global sentiments have improved since September, this has translated into healthy order books for Indian exporters," said FIEO director general Ajay Sahai.
It was in November that India's exports registered a growth of 18% and touched $13.3 billion after 13 months. "Indian exporters too have become much wiser this year. They have changed their product and pricing strategy for the gifting season since consumers in Western markets may still be cautious about making hi-value purchases," said Mr Sahai.
According to Gem and Jewellery Export Promotion Council (GJEPC), exports of gems and jewellery from India in November has shown a jump of over 47% as compared to the corresponding period last year. GJEPC vice-chairman Rajiv Jain said: "The Christmas season is what has driven this spurt in sales. People were buying less the whole year, but retailers built up their inventories for the festive season. But since customers are now looking for lower-value products, so we have rejigged our portfolio somewhat."
Besides major retailers, TV networks in the US, UK and Germany also source jewellery from India. "They have also increased their orders," adds Mr Jain.
Even handicraft exports have received a vital lifeline after more than a year. "Christmas-New Year orders have gone up by more than 15% this year as compared to last. This has helped to arrest the fall in handicrafts exports, which was declining at more than 45%," said Export Promotion Council for Handicrafts chairman Raj Kumar Malhotra.
This year-end, to mitigate risks and dependence on the US, Europe and Australia, exporters have also tried to open up newer markets such as Latin America, Japan, Korea and South Africa, where Christmas-New Year is celebrated in a big way.
Source : The Economic Times.com