India’s holiday exports to grow 30% this year

With purse strings loosened as people look forward to a

prosperous year ahead, global retail biggies like Wal-Mart, Marks & Spencer, Tesco, Carrefour and Ikea have stepped up sourcing from India in a big way ahead of the year-end holiday sales. Exporters estimate this increase in sourcing to be 25-30 per cent year-on-year. Even large Indian companies such as Gokaldas Exports, one of India’s largest exporters of readymade garments, is also seeing a 30 per cent jump in orders amounting to Rs 300 crores in the current Christmas-New Year period.

With the recession finally on its way out coupled with India’s increasing competitiveness with Chinese products, the demand for high-end goods like diamond and gold jewelry, handicrafts including art metalwork, shawls and woodwork, premium leather shoes and handmade woolen carpets are on an all-time high. The US and Europe which were hit the most during the economic slowdown are also seeing surging demand for affordably priced silver jewelry and dainty light gold jewelry from stores as well through  television shopping network.

India is also showing great demand especially as it bridges the gap with China which is losing its competitive lower pricing edge ever since it started to export raw materials. Indian exports have been growing consistently at 27-28 per cent in the last seven months, making the Federation of Indian Export Organizations (FIEO) revise its export estimates for the fiscal to $220 billion. While China is still very strong when it comes to greeting cards and Christmas decorations, India is gaining in lifestyle products such as garments, gems & jewelry and footwear. According to FIEO, lifestyle exports alone will grow 30 per cent in December to touch $3 billion.

Mehul Choksi, Chairman and MD of Gitanjali Group, says the company’s exports are up nearly 50 per cent this year. Overall exports of gems and jewelry grew 38 per cent to $2,922.58 million in October, up from $2,120.64 million a year earlier. India’s holiday exports are expected to grow 30 per cent in 2010 after a 7 per cent drop in 2009 due global recession.