Punjab shawl industry to witness 10-15% growth

Despite sluggish exports, early winter and festive boom

is pushing sales of shawls in North India. A significant increase in the prices of woollen yarn over the past one year and the slowdown in European markets have not dampened the spirits of Punjab’s shawl industry, putting last year’s negative growth of 25 per cent behind it, now it is expecting a 10-15 per cent growth this year.

Manufacturers, most of them SMEs, are bullish about the domestic market, which contributes 80-85 per cent of the total sales. They said the early winter in many parts of north India and the wedding season were driving demand. As a result, they expect to clear last year’s inventories of unsold goods.

The industry’s overall revenues are Rs 2,000-2,500 crores and there are 250-300 units, employing more than 100,000 people directly or indirectly. Manufacturers have started blending wool – the major raw material – with other raw materials like viscose, acrylic and polyester to control the cost of shawls. So, there has been no major increase in shawl prices, which is a key reason behind the increase in demand, too.

To meet international standards, manufacturers have invested in designs, colour, quality wool, and also inducted state-of-the-art imported machinery. From a modest beginning in 2002 with two shuttleless looms, the industry now has 350-400 such looms. There are 2,000 traditional looms in the state.