After lockdown, India is now in the ‘unlock’ phase, but sadly the situation hasn’t improved much for the industry.
And it’s not just about export market; even the domestic market of India is severely hit. The numbers say it! The domestic market witnessed a drop of 84 per cent in May 2020, compared to the same period of last year.
What’s noteworthy is that whatever little business was there, it was only thanks to masks and PPE products.
Claiming this, a survey of The Clothing Manufacturers Association of India (CMAI) amongst its hundreds of members, says that the domestic apparel business has reported almost ‘zero’ production of regular products in May 2020.
The only 22 per cent of the apparel manufacturing across India started functioning by the end of May and they too are operating at an average 25 per cent of their capacity.
It is also worth mentioning here despite all the efforts of Government, trade bodies and individuals, banks are not supporting industry at all.
As of 15th May, of the apparel manufacturers who had applied for the additional working capital loan (COVID Line) as directed by RBI, only 26 per cent had actually received assistance from their banks. The balance 74 per cent still had their applications in the ‘processing’ stage.
“Contrary to what is thought, the situation has hardly improved even after the easing of restrictions and attempts to open up the economy. Unless immediate steps are undertaken to permit unfettered and uniform opening up of all shops, market complexes and malls as well as factories, the apparel industry in India is heading towards an unmitigated disaster,” CMAI said.
