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Survey: India’s Garment Manufacturing Industry Crisis Set to Worsen

Textile workers in an Indian factory. Shutterstock

More than three-quarters of the Indian garment industry’s micro, small and medium enterprise (MSME) manufacturers surveyed as part of a new study conducted by the Clothing Manufacturers Association of India (CMAI) say they are contemplating reducing their staff by more than 25 percent.

Meanwhile, 72 percent of respondents said more than 50 percent of their orders had been cancelled by buyers, leading to “a huge problem of dead inventory in the coming months,” the report read in part.

In addition, 72 percent of respondents said they have received less than 25 percent of payments due in April, and another 12 percent reported receiving less than 50 percent of payments due to them last month.

Few are optimistic of a turnaround in the near-term, with 90 percent of respondents believing May will be a worse month for their business than April, and more than 20 percent saying they don’t believe the industry will begin to recover until 2022.





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