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Impact Of Covid-19 On Indian Textile - Inner Wear Industry

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Mr. Siddharth Grover, Director, <br>Groversons Paris BeautyWe all are very well aware of this Covid-19 pandemic which is going to leave a drastic effect on all the industries. This has already caused a major dent in the global economic position and markets at a time when the world was not at a very strong economic position. This pandemic is just making things worse, and after observing and reading the impacts on the markets, it seems if this is not contained and suitable economic relief policies are not announced at the earliest, it will be extremely difficult to come out of this situation.

India is not immune to this economic impact the world is going through, we have also had the worst crash in the market in decades due to this pandemic. Looking at the increasing number of victims in India and to prevent the further spread of the virus, the government’s decision to have a complete lockdown till 14th April 2020 seems fit, but while this
helps in containing the spread of virus and help save numerous lives which is of utmost importance, the economic impact and damage it has caused and is causing is very big and it will be a difficult year to come out of this.

With closed markets and the lockdown where everyone is told to stay home, demand of every product beside basic essentials has come to a halt. Not only that the demands are on a down, there is no production or operations allowed. This pause in the buying and selling of things has a major basic impact, without velocity of money no economy can operate.

In particular, the inner wear industry all markets are closed, all manufacturing facilities are closed, no sales imply no payments which means the stress on the business to keep the staff on board and take care of them in this time of difficulty, keep up with the rentals, electricity bills, interest costs of the finances, taxes to be paid, the govt will soon have to ease and announce more economic support for our industry in order for the survival of businesses.

The coming future is going to be tough for all, and in these tough times we all as an industry and as nation must come together and support the economy. In my personal opinion what we feel is that as soon as the govt is sure of containing the cases of this virus, and it is safe to resume all businesses, we all must not slow the buying and selling cycles, people must spend money and not hoard it, help the economy get a momentum and start the velocity of money. This can be a major factor in recovering from the damage. As far as the trading of stocks is concerned, people need to stop shorting stocks and be clam and optimistic that the market will recover its positions.