However, with a steady stream of inquiries, exporters are hopeful of finalising more orders in June. Exporters tend to get holiday-season related orders for the year during this period. “Orders booked in February during trade fairs, when prices were lower, still have to be delivered despite losses,” said Jozie Malik, founder of Wood Art, a Saharanpur, Uttar Pradesh-based maker of Christmas-related items. “Last year, orders worth around ₹15 crore were received by April-May; this year, the figure stands at only ₹4-5 crore.” He noted that European buyers are placing orders only for limited quantities instead of bulk purchases.
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Exports of Christmas-themed articles grew 1.2% to $121.4 million in FY26 from $119.9 million in FY25. It stood at $111.2 million in FY24.
“Demand is down by more than 50%,” said Malik. “The business is equally split between the US and Europe, contributing around 50% each, but nearly 40% of US business has been cut off.”
The US is India’s largest destination for Christmas goods, accounting for 63.5% of exports ($77 million), followed by Germany at $8.7 million, and the UK ($7.1 million).
“Christmas orders are coming but the flow is lesser than last year,” said a Mumbai-based exporter of manmade textiles. “The orders of home textiles and readymade garments are 10-15% lower than last year.” Sanjay K Jain, managing director at TT Ltd said cotton textile orders are stuck as raw material prices have gone up. “Cotton yarn prices are up 30%, packaging material is up 50%, and dyes 30-40%,” he said. “The West Asia crisis has disturbed the business as consumption is slow.”
ET BureauVijaykumar Agarwal, chairman of the Textile Export Promotion Council, said the fear among buyers is consumers may exercise restraint in shopping due to limited budgets, and only focus on spending more on essential items. “For apparel, next spring, summer orders are being placed now for deliveries from September through November,” he said. “For bedsheets, orders are constant,” he said, adding that people are worried because of a 30-40% rise in yarn and polyester prices. Malik said production is being hit by gas shortages and higher freight costs. “Aluminium prices have risen to ₹340-360 per kg from ₹180 per kg.”
FTA boost, discounts
According to A Sakthivel, chairman, Apparel Export Promotion Council, June and July are lean months for orders but for the other ten months, exporters continue to receive business. “New buyers have started coming to India as FTAs progress and India is expected to gain duty-free access similar to Bangladesh and Vietnam…Fuel prices and shipping charges are rising, but we see this as temporary and are discussing cost-sharing mechanisms with buyers,” he said.
Exporters said demand in the US is subdued and costs have increased, making it difficult to cater to orders.
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India’s textile and apparel exports in April fell 3.4% on-year to $2.88 billion. “The UK and the EU are in wait-and-watch mode as they want their respective trade pacts to materialise,” said a Mumbai-based cotton textile exporter.
Exporters also said the US is offering refunds to its importers impacted by the recent 50% tariffs on Indian goods. Indian exporters of manmade textiles and made ups had offered 15% discount to their American clients when the tariffs were 50%, and the discount was 10% when the tariffs were 25%.
“With the US, exporters are trying for better prices as tariffs are now lower,” the exporter said. “With the EU, there is a slowdown in Christmas orders. However, there is scope for orders to improve in June.”