The traditional bastions of Punjab’s woolen apparel industry, Ludhiana and Amritsar, are grappling with a significant downturn in exports, driven by a confluence of economic instability, rising living costs across Europe, and ongoing geopolitical tensions such as the Russia-Ukraine war.
In a stark indicator of the downturn, exports of woolen garments, including shawls and stoles categorized under the readymade garment sector by the Centre, have plummeted from $121 million in the fiscal year 2014-15 to a mere $90 million this year. This represents a dramatic 40 percent decline, with exports dipping further to $60.43 million in 2022-23. While there have been sporadic upticks in certain years, the overarching trend points downward, compelling major manufacturers to pivot towards alternative products like suits, sarees, and knitwear to sustain their businesses in a volatile market.
The recent escalation of hostilities between Israel and neighboring nations has exacerbated the situation by extending shipping routes to Europe via the Cape of Good Hope, thereby increasing transit times and costs. Commerce and Industry Minister Piyush Goyal recently underscored the adverse effects of these prolonged shipping routes on global trade, directly impacting Indian exports. The extended sea routes not only delay shipments but also inflate logistical expenses, making Punjab’s woolen apparel less competitive in international markets.
Major importers such as the UK, Italy, Australia, France, Germany, Netherlands, Greece, Sweden, Portugal, and Belgium have traditionally been the largest markets for Amritsar and Ludhiana’s stoles and shawls. Collectively, these regions contribute to manufacturing shawls and stoles valued at approximately Rs 6,000 crore, with exports accounting for around Rs 1,500 crore. In the Gulf region, the UAE stands out as the primary consumer, according to Gaurav Jain, a shawl manufacturer based in Amritsar. Jain lamented that the dream of restoring pre-COVID export levels remains elusive amid persistent international conflicts and global recessionary pressures.
The broader Amritsar shawl industry, which boasts an annual turnover of Rs 2,500 crore, sees nearly Rs 500 crore from exports. Meanwhile, Ludhiana leads with an impressive annual turnover exceeding Rs 3,500 crore, including exports worth about Rs 1,000 crore. Despite these figures, the sustained decline has forced many manufacturers to rethink their strategies and diversify their product lines to adapt to the rapidly changing global commerce landscape.
As Punjab’s woolen apparel sector navigates these challenging times, stakeholders are calling for strategic interventions and support to mitigate the impacts of global economic shifts and geopolitical unrest. The path to recovery remains uncertain, but the resilience of Punjab’s manufacturing hubs will be crucial in determining the future trajectory of this traditional industry.
