How COVID-19 is impacting the Textile Industry?


The demand is the major player in any industry. By saying this the domestic demand and export demand in the textile industry are considered to be low because of the lockdown. The COVID – 19 pandemics has not only affected the domestic demand but also the export demand. The third quarter will somehow to revive the domestic demand because we are on the verge of entering the festive season. The capacity utilization enhances demand.

Considering export demand a major backlog

The export demand was already facing a problem prior to the lockdown which is likely to impact post lockdown. The major slowdown in Chinese yarn demand has a greater impact on the overall export demand.

The key issues for textile industries

As we know that the textile industry is labour intensive meaning it depends on the labour force on a larger portion. Due to COVID – 19 pandemic, with most labourers headed to their home town, the sector is facing challenges overproduction and to operate the function. This leads to a decline in production capacity. It will take 3 – 4 months for the operation to stabilize.

Another major issue is considered to be supply chain disruptions, which is also due to labour unavailability and making many areas into the containment zone.

Economic slowdown

The ongoing economic slowdown is about to affect the demand by 25%. The demand for the first half-year (2021) is likely to be stopped with the summer because of the lockdown. This also depends on discretionary spending. This also depends on the government measure to incentivize exports.

Holding inventory may be a good option but not for the longer term. The future of Indian textile industry looks promising beyond any issues due to the high consumption of the textile products. The major problems are due to the present pandemic situation. This is uncertain and the older scenario can be resumed soon. By taking this in mind, the textile industry can produce eventually.

This may not be a good time for more production but in future, these issues can be solved. Considering the domestic demand and export demand, the production can be done accordingly. However, the demand for readymade dresses may not stop. Let us hope for the early resume of production and an increase in the domestic and export demand for the textile industry. A good solution needs to be adopted to overcome the pandemic situation and act accordingly by considering the future situation.


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