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Covid-19 crisis a mixed bag for Indian apparel industry

Mar '20
Pic: Shutterstock
Pic: Shutterstock
The outbreak of novel coronavirus (Covid-19) has not only slowed down the economy of China—the epicenter of the virus outbreak, but is also affecting economy of several countries, including India. However, for the Indian apparel industry, the situation is a mixed bag as there is growing demand on the one hand, and raw material shortage on the other.

“The current coronavirus crisis is a mixed bag for the Indian apparel industry. Orders meant for China are now being routed towards India, so that’s the positive part. However, the raw material, machinery and all the other components required for manufacturing still largely come from China, so that’s the negative aspect. As a manufacturer, it is the first-time that demand has outstripped supply by a good margin. However, the dependence on China for raw material is putting a big question mark on our ability to meet this unexpected demand,” Karan Bose, MD, Hula Global Fashions Private Limited, a Noida-based garment exporter, told Fibre2Fashion.

Dollar Industries, one of the leading Indian brands in the hosiery sector, has not felt the impact of the virus on its business yet. Vinod Kumar Gupta, MD, said, “It’s less of a problem for India currently and there is no impact of the virus on our business. When we speak about the hosiery industry, we are into basics, so the virus will not impact the business. It is the panic in the market that is creating a problem.

"We should just be careful and protect ourselves. We should not look at things in a profitable manner. We cannot expect to benefit from someone else’s loss as this is inhumane. The countries purchasing from China are also in distress and business is a bit slow all over the globe. As a result, many countries will start depending on other Asian countries for their imports. But in case of India, the overall business will not get much affected.”

Fibre2Fashion News Desk (WE-DD)

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