Owing to the impact of COVID-19, domestic apparel manufacturing and retail industry and especially SMEs are almost on the verge of extinction.
Following the CMAI survey, now the Gujarat Garment Manufacturers Association (GGMA) survey also confirms the fact that around 15 per cent of the firms are thinking to close down their business.
Around 1,700 respondents from across India including manufacturers, job workers, dealers, distributors, retailers, multi-retail chain stores and agents participated in this survey. 90 per cent of the respondents have staff of less than 50 people. Notably, majority of firms are planning to reduce their staff from 20 to 40 per cent.
Arpan Shah, Hon. Treasurer and Chairman (Arbitration), GGMA shared these results with the Prime Minister and requested for support on all fronts be it GST refund, taxation relief, not to import unnecessary products, reduction in minimum wage, etc.
The survey highlights that 97 per cent of the industry firmly believes that their payment will be delayed due to the cash crunch in the marketing, while 55 per cent of the participants shared that they are expecting that market size will reduce more than 40 per cent after lockdown.
38 per cent shared that it will take at least 3-6 months for the business to become normal and the same percentage shared that it may take 6-12 months.
67 per cent shared that their orders had been cancelled due to COVID-19. Respondents shared that they will reduce staff, will have less budget for marketing and also decrease salary to cut overall business.
“We know that it will not be easy for the Government to take strong steps to support industry but if industry will collapse, it will have more negative impact on the country’s economy. We are hopeful that Government will support apparel industry,” he concluded.