India was the second-highest affected nation by Covid 19, and the surge of cases made it extra challenging for it to manage the developing economy. During the Covid crisis, the nation has seen decreased demand among textile companies .
A nation that gains and capitalizes through agriculture and IT sectors has multiple competitions from its neighboring countries. Covid-19 has affected most developing countries at the stage of economic development. It shook the market, and due to the shutdown, weak economies suffered a great consequence to sustain in the market.
The textile sector, which is still taking a little stride to develop a strong root in India and create a high payable market, has also seen a major dip. Covid 19 has affected both the demand and the supply chain of the growing industry, including Textile.
Although few managed to pace it, bearing the loss, many small-scale enterprises went to puddle after the outbreak. Considering the high impact on Textile Industry in India, you can read the challenges and strategies that helped to tackle the downfall.
Impact of Covid-19 on Textile Companies in India: Issues and Challenges
Over the years, the supply and demand of the Indian textile sector have been suffering from a lack of technology and up-gradation and not keeping up with the digital-driven market . Its fragmented industry management and logistic issues caused a major downfall during the crisis.
Covid 19 made it more difficult to export and import borders to borders to meet the demand. Apparent competition from other southeast nations is some of the major factors that caused much impact on textile companies in India.
All these factors only diluted the weak infrastructure of the textile sector during a sudden Covid 19 outbreak. Further, it made it difficult to function in to already suffering sector.
The main issues that were the cause of the impact were social distancing, customer supply and demand, production, manufacture, employment, labor scarcity, labor cost, and prices of essential raw materials. These are closely tied to each other, and disruption, among many factors, ultimately influences the overall functions.
Covid-19 and competitors in the sector
The textile giants circle India. Its neighbors with the biggest garment producers offer cheap labor work and highly efficient production to western countries. From the States to European countries, they prefer Bangladesh, China, and Turkey to mass-produce textile raw materials.
It can be counted as one of the main reasons India is losing its grip on the production of textile materials in big countries. Secondly, the outbreak halted manufacturing due to mass cancellation and uncertain markets during the pandemic.
Looking at different textile companies, most of them are at their initial stage, and only a few companies have established themselves strong over the decades. Trident India, one of India’s major known textile companies, has sustained itself in the industry with its sheer experience and dedication to developing as per the necessity.
Like every company, it has its fair share of losses incurred during the pandemic. But it managed to get over the difficult time by keeping pace with the trends and improving its infrastructure.
Its implications
Textile companies have been affected in multitudes. There’s not one way it can define the impact: demand, manufacturing, supply chain, inputs, or outputs. The pandemic has affected a large part of the country and has weakened its economic function, which is visible in the textile industry.
Being a sector that generates large employment after the agriculture sector, the country exports its large sector to the US, the EU, and the Middle east. Due to the cause of shortage in manufacturing and demand has affected the regular and wage earners collectively.
Hence, in the wake of the crisis government could interfere with maintaining the stability of the sector by creating an impactful idea.
Road to recovery: Strategies and Solutions
After the huge outbreak, the country slowly regained its pace and is working to improve its socio-economic area. Whereas, to recover textile companies in the country, the government has to make the rigorous implementation of the International Labor Organization (ILO) guidelines to secure the wage and employment of the people associated with the industry.
By taking necessary improvements collaborating with industry experts, implementing good policy, and improving the infrastructure that will further meet the expectation of the demands and supply.
Conclusion
The guide seeks to improve and understand the issues home of textile in India, discussing the issues and slackness in the industry. The Indian textile industry has seen a major hit during the pandemic, so it gets even more important to look at the repercussions and improve the system.
Companies like Trident India have recovered from the crisis by expanding portfolios, keeping up with the demands, and man-eating the investor’s evaluability. These all factors can help improve the condition of textile companies a lot.
