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India’s garment exports badly hit by state lockdowns

May 18, 2021
India’s garment exports badly hit by state lockdowns

Bangalore, Karnataka

Indian garment exports sector is badly affected as many states are experiencing total lockdown. The sector has recorded a loss of around $15 billion during the second wave of the coronavirus pandemic.

Karnataka contributes 20% of the total volume of garment exports to the overseas market. However, the state has been under a total lockdown since May 10 and will remain so till May 24. According to Rahul Mehta, Chief Mentor, Clothing Manufacturer's Association of India, no garment production is allowed in the state during the lockdown period. He also said that the exporters have asked the government for permission to at least finishing and packaging the completed orders so that the exports can be sent out.

He said that if the export orders are cancelled then it will become very difficult to replace them because the formalities such as letters of credit and bank facilities take a lot of time.  Rahul Mehta also mentioned that India’s export volumes are far behind China. As the business reduced last year due to the coronavirus pandemic, export has come down to $13 billion in this sector.

The pandemic has affected a lot of jobs in the multi-million garment manufacturing industry. The industry earlier employed around 12 million people but the number has reduced now.

The US and Europe are India’s biggest markets for garment export. The industry, mainly comprising MSMEs, is adversely affected due to the pandemic. States such as Delhi, Gujarat, Tamil Nadu, Madhya Pradesh, West Bengal and Punjab are affected. As per the industry insiders, the government’s stimulus package did not benefit the industry much.

Source: Business Today

Image Source: Wikipedia

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