International Observation: India'S Textile Industry Is Cautious In The Face Of The Surge Of Infection In China

With the rapid increase in the number of infected people after the recent liberalization 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 have reduced their purchases from China, and the government has 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 and squeezed manufacturers' profits. Epidemic risk is another challenge facing the industry, which is coping with the 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 has further decreased, and there is a general uncertainty between buyers and sellers about the future situation. Some experts believe that because India is close to China, India may become a soft target of the epidemic, while others believe that India has experienced the most serious 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 Ludhiana 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 the situation may not worsen as before. In the next week or two, things will become clearer. It is hoped that the situation in China will be brought under control in the coming weeks, and the current impact should be less than that of India last year.

A cotton trader from Baxinda 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 infected people 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 Indian textile prices.