Time and again, various trade bodies and export promotion councils have requested the Government that apparel manufacturing can’t survive without any support from Government, especially in these tough times.
Nearly all trade organisations have shared several of their demands with the various ministries to the Prime Minister Office (PMO).
These demands include the short-term as well as long-term demands. The industry is also well aware that all demands can’t be fulfilled, and so experts are now asking for core things.
Representing the garment industry of Tirupur that’s worth Rs. 26,000 crore, Raja M. Shanmugham, President, Tirupur Exporters Association (TEA) is of the strong view that Union Government and all stakeholders of the industry should collectively face these challenging times.
He also insisted that in this hour of crisis to save the country’s economy, all the stakeholders have to come together.
“One-year moratorium for all term loans and working capital to be given, in which banks need to be told to not make any profit on interest for next 1 year, reducing by some 2 to 3 per cent. Similarly, the Government should give interest subvention to all the term loans and working capitals outlaid by banks to the extent of 3 to 5 per cent for one year,” he said.
To return the industries from this standstill condition, the second important thing is a fresh infusion of working capital to the tune of 25 to 30 per cent and it needs to be given without additional collateral. This step will ensure benefiting the labourers, industries, banks and country’s economy.
Regarding the payment for the workforce, the Government should pay for the closure days through ESI to all its ESI cardholders, and for the non ESI workforce, the same can be through the Jandhan accounts.
“Wages of April month is currently the biggest challenge for the apparel industry and Government must support on it. These should be priority for Government, otherwise industry will not be able to survive at all,” he concluded.
