Coronavirus: How Indian industries to grab
The outbreak of coronavirus is causing concern in financial
markets worldwide. Chinese shares drop nearly 9% amid fears
of coronavirus impact. Indian exporters are seeing cause for
concern as soon as the virus gets under control. Even after
the end of the Chinese Lunar Year holiday, the real effects
of trade can be estimated after February 8th.
However, regardless of a direct strike to exchange with
China, the Indian industry is ready to fill the gap for
Chinese dealers, according to a report published in Business
When the SARS virus hit China in 2003, which later spread to
17 countries, it did not cause significant damage. This
could be a cause for concern if the situation is not
restrained and continues for a long time.
“We have to see if an order can be placed there (in China)
in the near future,” said an executive from a South
India-based textile company. The Indian clothing market is
expected to be worth $53.7 billion in 2020, making it the
sixth-largest globally, according to the fourth annual state
of fashion report by The Business of Fashion and McKinsey &
India is the second-largest producer of cotton. India’s
cotton stocks are expected to account for 16 percent of the
global total this season. Last year, India exported
800,000-900,000 bales of cotton to China. During the first
four months of the cotton year (October-January),
600,000-700,000 bales were shipped to China.
The exporter also has an order for 300,000 bales. One
participant made the decision to curb export to China, but
Atul Ganatra, President of the Cotton Association of India,
said it was a one-off event and there was no terror at the
India exports $223 million of leather tanning and dyeing
extracts, though imports from China amount to $ 394 million.
If China’s export of those goods to the global marketplace
is affected, the Indian industry may fill this gap and look
On the other hand, profit has not yet been measured through
the market, said Nayar Jamal, a member of the Little
However, many experts think Indian traders or industry
cannot match the self-discipline, mobility, scale and scope
of China. India needs enough time to match with the Chinese
work ethic and self-discipline.