The COVID-19 epidemic is the first and foremost human disaster in 2020. The impact of COVID-19 on India has been largely disturbing in terms of economic activity as well as loss of human lives. Almost all the sectors have been negatively affected.
The textile industry is one strongly hit industry following travel with lockdown and changes in consumer regular habits, retail sales have gone down. Mostly selling channels have shifted and buying patterns have changed. These changes have impacted not only volumes of products but types of products as well as distribution channels with those changes.
Impact on the manufacturing level
In the first weeks of the dilemma more than 1 million workers were impacted. Many workers sent home from work without severance and furlough pay.
The fall in demand and financial hazard faced by the buyers has directly resulted in invalidation of orders during the period from April to July 2020.
Manufactory that have been relying on a limited number of large retailers are faced with defaulting clients both on payments and on order in production leading to some manufacturers going out of business.
The second weave of COVID-19 might gradually impact the indian textile sectors supply and demand dynamics. The supply chain has been impacted by the local lockdowns at key textile hubs such as Tiruppur, Ludhiana, Surst and Bhilwara. The restricted movement of goods means non-availability of input such as yarn and fabric which is eventual to have a short term impact on the finished output, the domestic rating agency said. The labor availability has also been impacted moderately and shop floor are likely to remain functional at a few plant sites but with restricted occupancy.
The future for the Indian textile industry looks promising, buoyed by strong domestic consumption as well as export demand. With consumerism and disposable income on the rise, the retail sector has experienced a rapid growth in the past decade with the entry of several international players like marks & spencer, guess and next into the Indian market.
Department of Social Science
Biyani Group of Colleges