India Textile Industry Or Layoffs 10 Million!

The India Apparel Manufacturers Association (CMAI) said that if there were no government support, the textile industry could lay off 10 million people. The Association says intervention measures such as wage subsidies must be adopted, otherwise there will be huge job losses.

It is reported that more than 80% of the clothing industry in India is small and micro enterprises, of which CMAI has about 3700 members, employing over 700 thousand people, and most members can not carry the epidemic for 3-6 months. Without government assistance, whether in terms of wage subsidies or in the resumption of work, it may lead to a reduction in the number of jobs in the entire textile chain, or 10 million people.

CMAI said that the India government must take wage subsidies and other interventions, otherwise it will cause huge job losses. If the garment industry goes bankrupt, it will affect the entire value chain from fabric supply industry to brand to zipper and label industry. India textile Ministry requires all major global companies not to cancel orders from India exporters, which is expected to have a positive impact on manufacturers, especially smaller manufacturers.

It is reported that CMAI has conducted a survey among its members, and has analyzed about 1500 replies, of which nearly 20% are considering closing the business after the blockade. At least 60% of the members expect income to drop to 40%.

Modi, Prime Minister of India, announced in April 14th that the national blockade, which was scheduled to end on that day, will be extended to May 3rd. Some of the non epidemic hot spots may be eased slightly after April 20th.