The textile and clothing industry employs over 105 million people. It earns around the US $40 billion forexes, apart from substantial revenue under GST and other taxes.
The Indian textile industry has taken a major hit due to COVID-19. This is because most of the Indian yarn exports are to China. The agency assumes that India’s exports will be substantially hit till 1HFY21. In fact, it has already reduced by more than 40% until January 2020 due to the US-China trade war.
The majority of downstream players had to incur inventory losses due to the ongoing geopolitical tensions in crude oil. This further lead to the prices declining by more than 40% month on month in March 2020.
The fabric industry registered a marginal improvement in exports in 10MFY20. This was coupled with lower raw material costs and increased export demand from Bangladesh and other countries. Indian ready-made garments players have been hoping of a revival in demand and shift of orders from China since the start of a pandemic. However, with the spread of coronavirus in Europe, demand and orders have been reduced from major retailers. Due to the pandemic‘s impact on consumer behaviour and habits, “online-sales” are expected to witness a significant surge, even after the industry recovers.
The statistics below are taken from Industry data available pre-Corona virus impact.