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 Standard.
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 & Company.
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.
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.
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 moment.
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 profitable.
On the other hand, profit has not yet been measured through the market, said Nayar Jamal, a member of the Little Tanners’ Association.
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.