The Early Impact of COVID-19 on Textile Industry: An Empirical Analysis

Abstract

The COVID-19 pandemic has exposed the economy to immense distress, ruptured multiple systems and left the economy out of breath. The present study has made an exploratory attempt to unleash the business-related issues faced by the textile entrepreneurs of India (Punjab) due to COVID-19. The data were collected from 123 entrepreneurs from the textile industry in Punjab. Factor analysis and regression analysis have been used for the purpose of analysis. It was found that the major business-related issues faced by entrepreneurs due to COVID-19 include the radical effect on the working capital of the business and on future marketing campaigns to seek new orders. However, the majority of them were found to be digitally equipped to accept digital know-how instantly and grabbed opportunities by manufacturing N95 masks and personal protective equipment (PPE). The present study is a maiden attempt to unleash the early impact of COVID-19 on the textile industry in Punjab. JEL Codes: E30, E32, L26