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The second wave of Covid-19 resurgence can potentially disrupt fabric demand, said India Ratings and Research (Ind-Ra).

"Woven fabrics production continued to improve mom, though marginally, in January 2021, despite remaining 21 per cent YoY lower," Ind-Ra said.

"While recoveries for blended and knitted fabrics were quicker, that of woven is expected to be delayed with micro-lockdowns and work-from-home culture."

Besides, export demand for woven fabrics is expected to plunge over Q1FY22 with key destination countries grappling with a second wave of pandemic.

"Fabric exports remained muted in January 2021 on a mom basis, and 17 per cent YoY lower. Demand for imported fabrics surged over December 2020-January 2021, led by restocking by retailers."

"Imports in value terms doubled between November 2020-January 2021 with higher shipments from China, Bangladesh and Vietnam."

Accordingly, the agency expects near-short term disruptions with the closure of retail spaces, malls, shopping centres other than essentials in urban cities would delay the pick-up in domestic demand.

Lately, several state governments have imposed local lockdowns to curb the rising cases of Covid-19 infections.

Furthermore, several state governments have gone in for weekend curfews.

Additionally, malls, restaurants and other type of market places have either been closed down or their operational timing have been restricted as an added measure to dissuade public from staying longer outside, thereby, mitigating the risk of spreading the infection further.