INDIA, believed by many to have the potential to become the next China, is making headway in export markets, having joined the top five suppliers of Christmas decorations and and t-shirts in the US, reports Bloomberg.
US Customs data shows that sea-borne shipments of festival goods and accessories to America touched US$20 million last month, almost triple the value of last year.
India also gained a clear lead over the Philippines as buyers diversify supply sources in the face of rising labour costs and disruptions from China’s strict Covid-zero policy.
One such beneficiary of the early Christmas present is Amit Malhotra, whose Asian Handicrafts supplies decoration items to global brands such as Walt Disney, Harrods, Target and Dillard. Mr Malhotra confirmed a 20 per cent jump in orders compared to a year ago, and that he has bumped up production capacity.
‘This year we have shipped over 3.2 million units of Christmas decoration, up from 2.5 million last year. Though China exports a significant share of Christmas decoration items, many first-time buyers have been approaching us now,’ he said.
The trend isn’t limited to Christmas goods. Exporters in Asia’s third-largest economy have been witnessing a significant increase in orders from both the US and Europe, with the shift mostly seen in low-cost, labour-intensive sectors such as apparel, handicrafts and non-electronic consumer goods.
While diversification of supply chains began with the US-China trade war in 2018, India hadn’t seen any meaningful gains back then as countries such as Vietnam cornered the bulk of orders that were moving away from Beijing.
Covid, which saw China adopt strict lockdowns, is helping change that. India’s goods exports, which touched $420 billion in the fiscal year ended March, have already reached $157 billion in the four months from April. While that pales in comparison to China’s annual $3.36 trillion of exports, analysts view it as a good starting point.
