Due to the Coronavirus hitting China, global buyers are looking at India to replace China as the primary supplier of goods such as ceramics, homeware, fashion and lifestyle goods, textiles, engineering goods and furniture, according to a report by The Economic Times.
As per the report, there has been an increase in inquiry from the buyers from the US and European countries. Rakesh Kumar, Director General, Export Promotion Council for Handicrafts told ET that those who were earlier sourcing from China are now exploring India as an alternate to meet the demands.
Due to China’s situation, Indian companies have received more interest in the ongoing Cevisama ceramics fair which is taking place in Spain. A Delhi based exporter told ET that this situation can give Indian companies a head start. Apart from this, labour-intensive industries like garments may also get boost in India due to the situation in China.
However, the coronavirus outbreak may also lead to losses in India’s trade and commerce. Indian leather industry, which is heavily dependent on Chinese market, may take a hit. In the wake of the situation with Coronavirus, the feeling is that the supply chain will get hit massively.
Rafeeque Ahmed, chairman of Chennai-based Farida Group, which is one of India’s largest shoe manufacturers and exporters feels that markets will not easily switch over suppliers and orders. Instead of India, there is likelihood that Vietnam and Cambodia will be more attractive over India, he told ET.
Earlier, we had reported how the Coronavirus has affected the Surat diamond business was as Hong Kong is in lock down for two months. Therefore, it depends upon how the global markets go around as the year progresses.