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Published
Apr 8, 2020
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India’s textile and apparel production could drop by 10-12% in FY21 Q1: KPMG

Published
Apr 8, 2020

India’s textile industry is expected to see its production decrease by between 10% and 12% in the first quarter of the 2021 financial year, due to decreased domestic and international demand caused by Covid-19.

Even after lockdown is lifted, domestic and international textile and apparel demand is expected to remain low

 
The first quarter of the current financial year, which began on April 1, is expected to see a significant drop in textile and apparel production, according to a recent survey in India by multinational professional services network KPMG, accessed by the Press Trust of India.

The drop in demand caused by the lockdown will have a long-lasting effect on textile exports as demand in Europe and the U.S., two important export markets, has ground to a halt.

“With lockdown in China, price of man-made fibre imports is expected to rise significantly, resulting in higher price for some goods in the domestic market,” read KPMG’s study, accessed by the Press Trust of India.

“If the current scenario persists over the next few months, the domestic retail market would also be impacted significantly.”
 
The KPMG report also predicted that micro, small, and medium enterprises will be the hardest hit by the ongoing lockdown. A total of 43% of MSMEs could face closure if the lockdown extends beyond eight weeks, said the study. 
 
On April 8, Prime Minister Narendra Modi said in a press conference that it will not be possible to lift the lockdown on April 14 as previously expected. Coronavirus cases across the country are continuing to rise and, as of Wednesday afternoon, totalled 5,194 confirmed cases with 149 deaths. 

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