Impact of the global pandemic on the textile sector

From the spinning of thread on the wheels to the high-tech machines, the textile sector has been invariably a part of human evolution. In India, after the agriculture sector, the textile is the oldest sector. 

The textile sector creates employment opportunities for both skilled and unskilled opportunity, thus making it a second largest employer of the country by employing over 45 million people. The textile sector has laid the foundation of India’s growth by contributing 13% in the country’s export earnings, 15% in the manufacturing production and 2.3% to the country’s GDP. 

From the social development perspective, textiles empower women to start their own business or to avail employment at any textile unit; sustaining the country’s economic position.

The textile sector has been contributing rapidly at the global level. In 2018, the global textile industry was estimated at around US$ 920 billion and, by 2024, it may cross US$ 1024 billion. However, the impact of the global pandemic on textiles is worse and hampered the growth rate of textile industries. 

Following are the impacts of the pandemic on the textile sector and, since textile has a firm position in the global market, it will influence economic stability.


  • Inadequate raw materials for the fabrication process– Textile industries need raw materials such as jute, silk, cotton and so on; to start with their fabrication process and they get these raw materials from the agriculture sector. In addition to this, they also use artificial fibres made up of petroleum. Since agriculture industries had ceased their activities during the lockdown, the cultivation of all these crops got impeded leading to very less or nil production. Thus, at present many textile production units are facing the issue of inadequate raw materials causing unnecessary delay in the fabrication procedure.


  • Disruption in supply chain and logistics – In the mid-March itself, the governments across the globe had ceased the international borders and terminated the transport infrastructure disrupting the supply chain and logistics. The supply chain not only provides the raw material at a time to the textile units but also aids in carrying the finished products to the different retailers or fashion houses. Even after the upliftment of lockdown, there are few restrictions on the movement; tying up the flow of logistics activities.


  • The shortfall in demand – As the lockdown declared, everyone was at their home, so the question for the demand for new clothes is irrelevant. And now after the lockdown, employees are still working from home, the local authorities have put restrictions on the number of people in a wedding or any other occasion and eventually people are limiting themselves from going out, thus obviously there is no demand for the textile time being. Needless to say, low demand means low sales, low sales means less revenue and less revenue means less profit.


  • Limited workforce – Many labourers had to move back to their native place during the lockdown and, they are not coming back once the process of uplifting the lockdown begins because of the limitations on transport and along with that they have no assurance regarding their work. Thus, textile industries at their mills are facing the shortage of labourers and owing to this reason they are lagging from their predefined schedule.

  • Financial vulnerability – With the huge shortfall in the demand for clothes, textiles are already dealing with very less revenue affecting the cash inflow in the company. The cash outflow of the companies is piling up due to the payment of fixed cost and maintenance cost that is mandatory to pay. This imbalance in cash inflow and outflow affecting the liquidity of the companies and making their financial rigid which in turn hampering the revival process to a certain extent.


  • Uncertain future – No matter what business you are involved in, your business functions on the predictions made by you. Pandemic is entirely a new situation for all of us and has no certainty. At present textile industries have enough supply (produced before the lockdown) to do but, there is no demand, there will be demand in future but the uncertainty is about will the current stock will be in trend at that time. The companies are not able to research properly due to the less financial resources leaving them uncertain about the future, especially small fabrication units.


The textile sector is one of the pillars of the economy, thus the impact on this sector also causing economic problems such as unemployment, low GDP, fewer exports and many other problems. From the past one-month textile has been striking hard to revive its business but, with the limited number of people, it is quite hard. 

Yet, the safety of employees is more crucial because it’s them who carry out your business activities with their skills. 


That’s why the central and state government with local authorities has issued guidelines regarding social distancing that is not enough. Hvantage Technologies understand the problem and we work towards finding the way, hence we came up with the solution “H-Guard”.


 “H-Guard” safeguards your health and safety by maintaining & monitoring social distancing and records the contacts to do proper contact tracing at your workplace. It is a wearable device connected to your phone via Bluetooth. The primary objectives of “H-Guard” are:


  • Monitoring and Maintain Social Distancing.

  • Contact Traceability 

  • To Control Community Spread.


 Significant features of “H-Guard” are:


  • App-Based Monitoring

  • Real-Time Alert

  • Alert History Reports

  • Contact Traceability 


 H-Guard can be worn as ID-Cards, wristbands and tags and, there is no need to carry other stuff at all; making it easy for you to wear and safeguard your health.

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