DLF Place Shopping mall in New Delhi. Shutterstock
India’s organised apparel market will see a full recovery to pre-Covid levels on fiscal year 2022 balance sheets, according to note released by India Ratings and Research (Ind-RA).
In the third quarter of fiscal year 2021, sales returned to 80 percent of pre-Covid levels, the agency said, though apparel retailers were expected to end the current fiscal year with an overall dip of 40 to 45 percent in business compared with the year previous. India’s fiscal year ends March 31.
“Ind-Ra expects the recovery to continue in FY22, on back of improving consumer confidence, resumption of store expansion by organised players and prospects of the vaccine rollout,” wrote Prasad Patil, analyst at Ind-Ra, in a research note.
India’s economy was particularly hard hit by the pandemic as the country simultaneously weathered some of the harshest lockdown conditions in the world, alongside a high rate of infections.
The agency said it had factored concerns around pressure on discretionary spending and the threat of a new wave of infections that could hamper recovery into its predictions.
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