Textile MSMEs face COVID-caused uncertainties again

Textile MSMEs face COVID-caused uncertainties again

The COVID second wave worries textile-based micro, small and medium enterprises that were just starting to touch their pre-pandemic production capacity.


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

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

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