This has been reported in timesofindia.indiatimes.com dated 24 December 2016.
Wholesalers in Sadar Bazar get most of their stock from China, and some are made locally in Shahdara and east Delhi. There are differences in the quality of the Indian-made hats and Chinese-made hats. The simple ones sold at traffic lights are usually made in India. But, the fancy ones, like the musical ones or the ones with lights, are imported from China.
The local ones are preferred by schools or offices that are having Christmas parties. The velvet ones go for Rs 150 a dozen. Those that have stars or small Santas on them are sold in Khan Market, South Ex and Gurgaon where customers do not mind paying Rs 80 per piece.
Image courtesy wikimediacommons.org
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