COVID-19 and the Indian Textiles Sector: Issues, Challenges and Prospects

Abstract

The Indian textiles sector has been one of the worst hit sectors due to the COVID-19 crisis. In the context of its socio-economic primacy for the Indian economy, which is second only to agriculture, the industry must be given sufficient attention in academic and policy circles. This perspective is an earnest attempt at filling the void in scholarship on the issue of linkages between the Indian textiles sector and the COVID-19 crisis. The unprecedented crisis in the form of COVID-19 flu pandemic has threatened to derail the socio-economic life of people globally. In the current context, this article discusses the impact of COVID-19 on the globalized Indian textiles sector, given the primacy of the same with regard to social and economic realms of the country. The study employs the method of assessing the impact of crisis from both demand and supply sides, which in turn generates a combined impact. It is found that the crisis has manifold implications for this vital industry. Be it from the angle of consumer demand or production networks, the calamity has made its presence felt across different processes of the sector. Given the multiplicity and depth of these influences, it becomes imperative for the stakeholders, namely government, industry and the citizens to evolve innovative and valuable measures to contain the negative fallout from the crisis on this vital business. Failure to do so could imperil scores of jobs and livelihoods and impede economic growth. While the exact impact and combative strategies may be dynamic and evolutionary as and when the crisis unfolds, the study pieces together diverse aspects of the fallout of COVID-19. The analysis emphasizes on the need to think ‘out of the box’ for tackling this unprecedented crisis. Some of the probable solutions to tackle the crisis could be relaxation of tax compliance deadlines and rules, especially for the lower economic strata, so that consumer demand conditions do not deteriorate precipitously. Also, a more comprehensive financial package than the ones already announced (read: Atmanirbhar Bharat Abhiyan), factoring in labour and export-intensive sectors of the likes of textiles, could be announced to stem the negative fallout of the pandemic on the sector. The other major step could be concessions to exporters against the Remission of Duties or Taxes on Export Products scheme so that they are reimbursed for the hitherto unpaid duties and taxes.

The Indian fashion and textile sector in and post COVID-19 times

“…The covid-19 crisis affected the Indian fashion and textile sector holistically. Kanupriya ( 2021 ) states that the effect of crisis could be understood by examining the demand-side factors (social distancing, consumer demand, and exports) and the supply-side factors (production, supply chain, employment, prices of essential raw materials, and imports). The manufacturing activity across Asia was halted due to canceled orders and unavailability of raw materials.…”

Effects of leadership and reward systems on employees' motivation and job satisfaction: an application to the Portuguese textile industry

“…, 2021). This unprecedented crisis has threatened to derail the socioeconomic life of people globally (Kanupriya, 2021). Employees are an essential part of firms, requiring valid human resources for their functioning, performance and value creation.…”

“…Since the emergence of the coronavirus disease 2019 (COVID-19) pandemic, the normal operations of firms and its employees have been significantly altered (Eichenauer et al, 2021). This unprecedented crisis has threatened to derail the socioeconomic life of people globally (Kanupriya, 2021). Employees are an essential part of firms, requiring valid human resources for their functioning, performance and value creation.…”

Negotiating the Pandemic

“…(They are often employed as sanitation workers, cleaners of drains, garbage collectors, and road sweepers.) Also vulnerable are India's insuffi cient basic infrastructure and its IT sector, among others Bhamoriya et al 2020 ;Jha 2020 ;Chinchwadkar and Kathuria 2020 ;Pandey et al 2020 ;Swaroop and Lee 2021 ;Kanupriya 2021 ).…”