According to a recent Crisil reports, The Indian textile industry took a severe hit due to COVID-19 as the export of yarn and ready-made garments fell be as much as 90 per cent during April
Yarn exports fell between 80-90 percent in April and about 30 per cent 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.
Exports of ready-made garments declined by 91 per cent and by about 16 per cent during the March quarter. The US and the European Union, which together account for 64 per cent of India’s readymade garment (RMG) exports, are staring at a recession.
According to AEPC, India exports about $16 billion worth of apparels annually. Crisil Research expects yarn exports to decline by 35-40 per cent this fiscal, while garments exports to decline by about 30-35 per cent.