nCoV outbreak in China can spur textile sector biz in India

Coimbatore: With China reeling under the novel coronavirus (2019-nCoV) outbreak, Indian textile sector could potentially use the situation to its advantage, said industry representatives on Saturday. Pointing out that cargo movement in and out of China has been hit heavily, they said the global textile supply chain that was dependent on China would have to rely on other countries for import. “And India could tap into this opportunity.”
According to Rajkumar, chairman, Confederation of Indian Textile Industry, stakeholders, who were importing textiles from China, especially Southeast Asian countries, would look for alternatives, and India, with its capacity, could capitalize on the situation.
Speaking to reporters in the city, he said the opportunity could push up export of finished textile goods, clothing and fabrics by at least 20%-30%, providing an immediate relief from the drop in exports last year.
Rajkumar said the slump in China was a good opportunity for India. “Ships are not going there, and the number of flights has come down. This might take another 30 to 60 days to set things right. This would directly impact the world supply chain, which would at any time have 30 to 60 days stock.
If China doesn’t produce for 30 days, he said, orders might come to India. “It might come to Tirupur or Ludhiana. The possibilities of exporting cotton yarn, polyester yarn and viscose yarn from here also would go up. We have to wake up and work quickly to tap the opportunity.”
China's main clients in Vietnam, Cambodia, Thailand, Korea and in the European Union could possibly turn to India for buying finished gods, clothing and fabrics, he said. “This is a big opportunity to Indian textile sector. Inquiries have started pouring in. It would take another week to pick up,” he said.
With textile export falling in the past couple of years, this surge would help the industry become buoyant, he said. In the past two years, the export had come down from 100 million kilo per month to 60 million kilo and then 40 million kilo, he said. As the industry’s capacity was not utilized fully because of the fall, he said, the facilities were ready to meet the possible demand.
However, the situation also has a flipside. With the slowdown down due to the virus outbreak, yarn exports to China, which has been picking up, would take a hit, Rajkumar said.