Prime Freight’s summary of a September 2022 report by Bloomberg. Read the original for the full story.
Bloomberg reported in September 2022 that India had broken into the top five suppliers of Christmas decorations and cotton t-shirts to the US, as buyers diversified away from China.
US customs data showed seaborne shipments of festive goods from India reached about $20 million in August, nearly triple a year earlier, putting India ahead of the Philippines. Exporters reported rising orders from the US and Europe, mostly in labour-intensive products such as apparel, handicrafts and non-electronic consumer goods. One decorations maker said its shipments had grown from 2.5 million to 3.2 million units, with many first-time buyers.
India’s goods exports reached about $420 billion in the year to March 2022, small next to China’s $3.36 trillion, but analysts saw it as a starting point. Factors cited included China’s Covid restrictions, rising Chinese labour costs and the US ban on cotton from Xinjiang. Analysts also warned that contract enforcement and tax transparency remained obstacles to India’s manufacturing ambitions.
What it meant for shippers
Sourcing shifts change freight patterns. More India-origin cargo puts the focus on Indian port capacity, transit times and documentation, and buyers testing new suppliers often split orders across origins while they assess reliability.