Production in the Indian textile-apparel sector is likely to fall by 10-12 per cent in the April-June quarter because of the COVID-19 outbreak, according to a study by KPMG, which said demand shocks are expected to hurt textile exports over the next few quarters manufacturing employment would be affected owing to limited demand in domestic and global markets. “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. If the current scenario persists over the next few months, the domestic retail market would also be impacted significantly,” said the study. Contractual, wage labour will get affected more, leading to layoffs, unrest, lowering of purchasing power, it said. With Europe and the United States being the most affected, a huge impact would be witnessed on exports as global demand is expected to come down significantly, it said. The All India Manufacturers’ Organisation (AIMO) estimates that about a quarter of over 75 million micro, small and medium enterprises (MSMEs) in India will close if the lockdown goes beyond four weeks, and this figure is estimated to touch a whopping 43 per cent if the situation extends beyond eight weeks, added the KPMG study.
