With the rapid increase in the number of infected people after the recent opening of the Chinese market, the Indian textile industry has begun to take a cautious attitude, and industrial and trade experts are currently assessing the related risks. Some businessmen said that Indian manufacturers had reduced their purchases from China, and the government had also resumed some measures of the epidemic.
Due to the economic slowdown and high inflation, India’s textile industry and trade are facing poor demand from the global market. The rising prices of cotton and other fibers have also pushed up production costs, squeezing manufacturers’ profits. Epidemic risk is another challenge facing the industry, which is coping with adverse market environment.
Trade sources said that with the sharp increase in the number of infected people in China and the rising risk of India, market sentiment was further reduced, and there was a general uncertainty about the future situation between buyers and sellers. Some experts believe that India may become a soft target of the epidemic due to its proximity to China, while others believe that India has experienced the most severe virus shock wave that hit India from April to June 2021. Businessmen said that if the blockade was implemented, trade activities would be cut off.
Businessmen from Ludiana said that manufacturers had reduced their purchases because they did not want to take more risks. They are already facing losses due to low demand and high production costs. However, a trader based in Delhi is optimistic. He said that the situation may not deteriorate as before. Things will become clearer in the next week or two. It is hoped that the situation in China will be brought under control in the coming weeks. The current impact should be less than that in India last year.
A cotton trader from Bashinda is also optimistic. He believes that the demand for Indian cotton and yarn may improve due to the current situation in China and gain some advantages. He said that the sharp rise in the number of infections in China may affect China’s exports of cotton, yarn and fabrics to India and other countries. Therefore, short-term demand may shift to India, which may help support the price of Indian textiles.
Post time: Jan-10-2023