Coronavirus wipes out Indian yarn and garment exports in April

Coronavirus Wipes Out Indian Yarn and Garment Exports in April

Coronavirus wipes out Indian yarn and garment exports. The Indian apparel and textile industry took a severe hit due to Coronavirus as the export of yarn and ready-made garments fell be as much as 90% during April.

Yarn exports fell between 80-90% in April and about 30% during the quarter ended March as imports by China, which accounts for a third of India’s yarn exports fell as garment units there shuttered. Imports by Bangladesh, which accounts for nearly a fifth of India’s yarn exports, also declined, according to a Crisil Research report.

Meanwhile, the export of ready-made garments was declined by 91% in April and by about 16% during the March quarter. The US and the European Union, which together account for 64% of India’s readymade garment (RMG) exports, are staring at a recession.

Recently it had reported that several leading retailers in the US and EU had filed for bankruptcy, worrying their Indian creditors. India exports about $16 billion worth of apparels annually, according to Apparel Export Promotion Council (AEPC).

Crisil Research expects yarn exports to decline by 35-40% this fiscal, while garments exports to decline by about 30-35%.