Demand from the US and China is slowing down for exporters of clothing and diamonds, respectively. The shipment of loose diamonds from India has been hampered by the Chinese crackdown. Conversely, according to apparel exporters, demand for clothing from the US has decreased by 20% as a result of increased inflationary pressure.
About 30% of India’s diamond exports go to China and the Far East, which is the country’s second-largest market after the US. China is the second-largest market for loose diamonds after the US.
“The Indian diamond industry is being impacted by China’s zero-tolerance stance and the Covid lockdown there. However, it is anticipated that the nation will open up and business will resume in the next two months.” Colin Shah is the CEO of Gem.
President of the Noida Apparel Export Cluster LalitThukral remarked “The heat of increasing inflationary pressure in the US is already felt. The US market’s demand is down 20%.”
According to Raja Shanmugam, president of the Tirupur Exporters Association, “the type of news that is coming from the US, does not portend well for the garment exporters of Tirupur.” We must wait and see how the order situation develops at the start of September.
July saw a little 0.6% decline in apparel exports year over year to $1,380.5 million. Exports increased by 29.5% vs July 2020 and 1.2% versus July 2019. Total garment exports from April through July totaled $5,872.5 million, an increase of 6.0% over 2019-20, 113.6% over 2020-21, and 22.4% over 2021–22. India had recorded record-high textile and apparel exports.