Industry Insights
Domestic Garment
Industry faces Economic
Meltdown due to Covid-19
CMAI attempted to Survey the Eonomic Impact that the Pandemic has had on its Members. Mr
Rahul Mehta, Chief Mentor, issued a Press Release on March 31, 2020, talking of the analysis…
Deeply concerned by the economic impact
caused by the lockdown in the country due to
COVID-19, CMAI conducted a Survey amongst
its members to better understand how they were
dealing with the current circumstances and what
their prediction for the post lockdown period was.
An analysis of the first 1500 responses, has
indicated that a significant crisis has been
brewing in the Domestic Garment Industry. Only
a comprehensive support package from the
Government can cushion a potential collapse of
the Industry. While several important measures
have been announced by the Government, it
is clear that the Industry, especially its MSME
members which constitute 90 per cent of the
industry, need more support. Wage subsidy and
Working Capital support for the long working
capital cycle is the need of the hour.
Highlights of the Survey
• 20 per cent of the respondents closed their
business after lockdown.
• 59 per cent are expecting a revenue drop
of more than 40 per cent and 29 per cent
between 20 – 40 per cent.
• 81 per cent have received cancellation of
orders from their buyers.
• 80 per cent believe they will not be able
to sustain the current work force without
government support.
• 98 per cent are expecting their payments to
be delayed.
• 43 per cent expect their inventory to
increase by more than 40 per cent and
about 47 per cent expect an increase
between 20 - 40 per cent.
38 I APPAREL I August 2020