Only 22% garment units running despite easing of lockdown, says survey

The units are mostly operating at 25% capacity, and many of them are making masks and PPEs to cash in on the Covid-19 market

Despite Central and state government relaxations of the lockdown across the country, only 22 per cent of the garment factories in India started functioning by end of May. Most of them are making only masks and PPE products to address the Covid-19 market.

The Clothing Manufacturers Association of India (CMAI) says, "Contrary to what was expected, the situation has hardly improved even after the easing of restrictions and attempts to open up the Economy. Our Survey showed that only 22 per cent of the Garment Factories across India have started functioning by end of May. Factories are operating at an average 25 per cent of their capacity."

Around 40 per cent of these factories are engaged in the manufacture of products like masks and PPE products, the Association said.

Respondents in the CMAI survey indicated an 84 per cent drop in revenue over last year, stating that the situation would have been worse had some factories not started manufacturing masks and other PPE products. 

The domestic apparel business has reported almost zero production of regular items in May 2020. 

On the lending part, CMAI’s Survey showed that as of May 15, of those who had applied for additional working capital loans under the Covid-19 line , only 26 per cent had actually received assistance from their bankers. Loan applications of the remaining 74 per cent still were still in the ‘processing’ stage. 

The garment industry in India is heading towards unmitigated disaster and millions of jobs are at stake., said CMAI, while asking for Government and RBI intervention to help the industry survive.