Home / Knowledge / News / Textiles / High to very high impact of COVID-19 on 72% firms in India

High to very high impact of COVID-19 on 72% firms in India

Apr '20
Pic: Shutterstock
Pic: Shutterstock
The magnitude and speed of collapse in economic activity that India has seen over the last few weeks is unprecedented and there is tremendous uncertainty about what the future holds for businesses. Almost 72 per cent of respondents in a recent industry survey have reported that COVID-19 is having a 'high to very high' level of impact on their businesses.

Further, a substantial majority of the respondents do not foresee a positive demand outlook for their business in this fiscal, with 70 per cent of the surveyed firms expecting a de-growth in sales in fiscal 2020-21, according to the survey, jointly conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) and tax consultancy Dhruva Advisors.

A vast majority also foresee a reduction in their business cash flows and company's order book.

The survey clearly highlights that unless a substantive economic package is announced by the government immediately, India could witness a permanent impairment of a large section of industry, which may lose the opportunity to come back to life again.

Jobs are also at risk over the coming months as nearly three fourths of the surveyed firms said that they may look at some reduction in manpower in their respective companies.

The survey, which covered 380 companies from various sectors, showed 61 per cent of the respondents expect to defer approved expansion plans for up to 6 or 12 months, while 33 per cent expect to defer such plans for more than 12 months. Further, while 60 per cent have deferred their fundraising plans for the next 6-12 months, nearly a quarter of the firms have shelved the same.

With domestic demand plummeting to record low levels, companies were hoping that exports may provide an outlet for them to energise growth. While 43 per cent of the respondents reported that they do not foresee an impact on exports, nearly 34 per cent said exports would take a hit by more than 10 per cent.

Cost optimisation measures being considered by firms include manpower and salary rationalisation, deferral of appraisals, increments and bonuses, reduction in discretionary expenses and freezing recruitment.

Sixty nine per cent of the respondents believe additional measures and packages should be announced by the government. The key expectations are tax reliefs and incentives, ease of compliances and demand creation.

FICCI and Dhruva Advisors will repeat this survey in another four weeks to assess how the situation is changing.

Fibre2Fashion News Desk (DS)

Must ReadView All

Pic: Shutterstock

Textiles | On 26th Sep 2020

Global economic forecast not as dark as earlier guess: IMF

Though the global economic outlook is not quite as dark as expected...

Pic: Edinburgh Woollen Mill

Fashion | On 26th Sep 2020

FRP appointed to value Peacocks, Edinburgh Woollen Mill

Edinburgh Woollen Mill Group CEO Philip Day has started the...

Pic: Shutterstock

Retail | On 26th Sep 2020

India plans retail trade policy, settling logistics policy

India plans to formulate a retail trade policy for which stakeholder...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Textile institutes need to change their curriculum

Nishank Patel, Shri Dinesh Mills Limited

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Vidhyaa Shankar. S, A Ganapathi Chettiar

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Roz Guarnori,

Roz Guarnori

FESPA Global Print Expo 2019, to be held in Munich from May 14-17, is...

Mario Ploner,

Mario Ploner

<div>Italian company Tecnomeccanica Biellese specialises in planning and...

Frank Heislitz, Freudenberg

Frank Heislitz

Freudenberg Performance Materials is a leading global manufacturer of...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Iago Castro Asensio, RCfil Distribuciones S.L.

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Pranav Mishra, Huemn

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

September 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search