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Textile MSMEs face COVID-caused uncertainties again

Apr 24, 2021
Textile MSMEs face COVID-caused uncertainties again

Mumbai, Maharashtra

The textile micro, small and medium enterprises (MSMEs) had managed to recover up to 90% of their pre-pandemic production capacity only recently and the second COVID wave is already threatening their production again.

About 80% of businesses were hit by the first COVID wave and their recovery began only in September. India’s domestic apparel and textile industry contributes 2% to the country’s GDP and 12% to the country’s export earnings.

According to Ashok Juneja, President, the Textile Association of India, more than 60-70% of the MSME units were able to get back to their pre-COVID levels recently. However, this time, he is uncertain how much the second wave will affect the production process.

India has emerged as the second-largest manufacturer of PPE kits after the pandemic and right now, 600 companies are certified to produce PPEs.

Ashok Juneja added that MSMEs have learned from the last year’s experience and are well-prepared to handle lockdowns, labour migration, and night and weekend curfews. He also said that entrepreneurs will be ready to pay full salaries to their employees and avoid layoffs.

However, according to TK Sengupta, past president of the Textile Association of India, in case of a complete lockdown, the production capacity will fall to previous levels.

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