Report
kickstart operations post lockdown. However,
it is important that Banks respond to these
measures and implement these loan schemes
within the next four to five weeks so as to allow
a quick start to operations to help the economic
growth in the country.
Since a majority of the Garment
Manufacturing units would come under the
MSME criteria, CMAI is of the belief that these
measures would be a boost for the sector.
A similar support is required for Garment
Retailers and Traders. Currently they are not
covered by MSME registration. The survival of
Retailers is important to create demand and
avoid bad debts to the MSME manufacturers.
Further many MSME members are dependent
on the sub-contract orders from Large
Manufactures, Exporters, and Retailers. Since
the entire value chain is impacted, support
package has to be made available to the entire
Textile and Apparel Value chain (Textile to Retail
– MSME and Large Companies).
CMAI requested the Finance Minister once
more to provide support to small manufacturers
by providing direct grants for payment of wages
in the lock down period up to September 2020.
Small manufacturers will not be able to sustain
the losses from lockdown and subsequent
slow-down in demand. Absence of such grants
could lead to up to 30 per cent of the units
closing down permanently leading to a loss of
almost one crore jobs in the Textile and Apparel
Value chain..
CMAI also requested the
Hon'ble Finance Minister to
once again provide support
to small manufacturers
by providing direct grants
for payment of wages in
the lockdown period upto
september 2020 otherwise they
may not be able to sustain their
losses from the subsequent
slow-down in demand
APPAREL I August 2020 I 19