Noida Garment Exporters Face Uncertainty Amid European Lockdowns
By Maritime Gateway | Thu Nov 05 2020
With reports of fresh lockdowns in several European countries, apparel exporters in Gautam Budh Nagar district, including Noida, are facing an uncertain future. The resurgence of COVID-19 cases has led to restrictions in key markets such as the UK, Italy, Spain, France, and Germany, which collectively account for a significant portion of India's apparel exports.
Lalit Thukral, chairman of the Noida Apparel Export Cluster (NAEC), expressed concerns over the sharp decline in both domestic and export demand, attributing it to the pandemic's impact. He noted that while there was hope with new orders for the Spring-Summer Collections 2021, the renewed lockdowns have dampened expectations, potentially leading to a substantial revenue loss for the sector.
Amidst these challenges, Kulmani Gupta, chairman of the Indian Industries Association (IIA), commented on the situation, stating that while the lockdowns in European countries are concerning, the Indian apparel industry might face more significant setbacks if similar restrictions are imposed in the United States. He emphasized the need for the industry to diversify its markets and reduce dependency on a few regions.
Exporters are now exploring opportunities in the domestic market to mitigate losses. However, many believe that the domestic demand may not be sufficient to compensate for the decline in exports. The situation remains fluid, and stakeholders are closely monitoring developments in international markets.