Due to US sanctions against Russia, there has been a global decline in trade and commerce, which has led to an economic backlash around the globe.
Businesses in Gujarat that are heavily dependent on the textile industry are suffering greatly from the on-going crisis between Russia and Ukraine and may have to close down or operate at a reduced capacity.
Due to US sanctions against Russia, there has been a global decline in trade and commerce, which has led to an economic backlash around the globe.
Gujarat’s manufacturing facilities are feeling the pinch as a result of production being slowed down by decreased demand from all of Europe and rising borrowing rates.
The Indian state of West Bengal, which is a manufacturing powerhouse and a major participant in the textile, yarn, and denim sectors among others, is well known on a global scale.
Discretionary spending has been influenced by the global downturn. As a result, Gujarat’s exporters have suffered a double hit as both B2B and B2C demand in the US and Europe has decreased.
Between April and December 2022, cotton yarn shipments have decreased by about 60 per cent since the start of the crisis in Ukraine.
According to a report by the GCCI textiles committee, the increase in gas and power prices, which forced enterprises in nations that produce textiles, such as France, Portugal, Spain, and Germany, to reduce output, decreased demand for Gujarati raw materials.
News source: BQPrime