India’s ready-made garments industry is expected to grow by 15-20 per cent this financial year, according to a report by Crisil Research
“We see India’s ready-made garments (RMG) sector growing at 15-20 per cent in this fiscal, almost half the 28-33 per cent expected earlier,” the report stated.
The sharp decline in growth projection is due to the downward pressure on domestic demand as a result of the business and retail restrictions imposed in the wake of Covid-19 , it stated.
The report noted that domestic demand — accounting for 74 per cent of overall demand — had started recovering in the second half of last fiscal after lockdowns and other restrictions, which crimped first-half revenue.
However, since the fierce second wave landed in the first quarter of this fiscal, curbs have been re-imposed, slowing the demand recovery, it added.
“The first quarter of this fiscal will be a near-washout, with most domestic brick-and-mortar stores shut, and sales through e-commerce channels curbed. The second wave has also hit the hinterland, affecting sales of ‘value’ or affordable garments, which is the fastest-growing segment,” PTI quoted Crisil Research Director Hetal Gandhi as saying.