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%.
