The fashion industry may be affected due to the lockdown being imposed in different parts of the country. This can reduce business. Its recovery can also take up to two years.
Corona’s impact on the fashion business
The second wave of Corona has affected the Indian economy. Due to the closure of shops on a large scale and reduced sales, there is a lot of loss in the business. Like the other industry, the fashion industry is also under threat. According to the latest report by the domestic rating agency Icra, due to the rapid increase in the cases of COVID-19 infection, new challenges have arisen in front of the fashion industry.
Due to Corona, the lockdown being imposed in different parts of the country can become a problem for the retailers of the fashion business. In such a situation, it is believed that by 2022 – 23 only the fashion industry will be able to recover. The ICRA report presented on Sunday also said that the fashion business industry is expected to grow by 23 to 25 percent in 2021-22, but this growth is not enough to move the business to the pre-COVID-19 position.
The industry had improved rapidly before the second wave of the epidemic began, and by the last quarter of December 2020, the sales turnover had reached 70 per cent of the same level as before COVID. But the crisis has deepened due to the recurrence of the epidemic. Sakshi Suneja, head of ICRA’s fashion retail sector, says that businesses have tried many ways to save costs. Apart from this, he has also emphasized on rationalization of rent, salary and other expenses. It is expected that these measures will continue during the current financial year. Through these methods, the margin of the industry is likely to be around 4.1 percent in the current financial year, although this margin will be less than in 2019-20. ”
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