Christmas Orders From US, Europe Drop 10-15% As West Asia Crisis Hits Indian Exporters

India’s Christmas goods exporters are facing a difficult holiday season this year as orders from key markets such as the US and Europe have slowed sharply amid global economic uncertainty and rising costs.

As per Economic Times news reports, exporters say that Christmas-related orders have fallen 10–15% compared to last year due to the ongoing West Asia crisis, higher freight charges, supply-chain disruptions, and rising raw material prices. 

While inquiries continue to come in, businesses are now hoping for stronger order flows in June, which is usually a crucial period for finalising holiday-season shipments.

Christmas Orders Worth ₹15 Crore Last Year Fall To ₹4-5 Crore

According to exporters, buyers in the US and Europe are placing smaller orders instead of bulk purchases.

As per news reports from the Economic Times, firms based out of Saharapur had received orders worth around ₹15 crore by April-May last year. This year, however, orders are only around ₹4-5 crore so far.

The impact has been particularly visible on exporters to the US market, which accounts for nearly 63.5% of India’s Christmas goods exports. Exporters say demand from American buyers has weakened significantly as consumers abroad cut discretionary spending.

India’s exports of Christmas-themed articles still rose slightly to $121.4 million in FY26 from $119.9 million in FY25, but exporters say the current season remains challenging.

Raw Material Prices Surge 30-50%

Apart from weaker demand, rising input costs are also hurting exporters’ profitability. Yarn prices have increased nearly 30%, packaging costs have risen around 50%, while dyes are up 30–40%. Aluminium prices have reportedly doubled from around ₹180 per kg to ₹340–₹360 per kg.

The West Asia crisis has also pushed up fuel and shipping costs, making exports more expensive. Some exporters said they are still fulfilling older orders booked at lower prices despite facing losses now.

Exporters Hope Orders Improve in June

Despite the slowdown, exporters remain cautiously optimistic about the coming months. As per news reports, India could benefit in the long term as global buyers look to diversify sourcing beyond countries like Bangladesh and Vietnam.

Exporters also expect proposed free trade agreements with the UK and EU to improve demand once implemented.

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Conclusion

India’s Christmas export industry is navigating a difficult mix of slowing global demand and rising costs this year. While the West Asia crisis and inflationary pressures have disrupted business, exporters remain hopeful that fresh orders in the coming months and progress on trade agreements could help revive momentum ahead of the holiday season.

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