India Can'T Afford It! CMAI Says India Textile Industry Will Lay Off 10 Million People!

At present, the overseas epidemic is still spreading rapidly, especially in India. According to the latest official data of India, as at 18 p.m. local time, at 5 p.m., 14792 cases of new crown pneumonia were reported in India, including 2015 cases cured and 2015 cases died. Data show that in the past 24 hours, 957 new cases were confirmed in India.

With the further fermentation of the epidemic in India, Premier Modi of India announced last week (14) that the national blockade, which was scheduled to end on that day, will be extended to May 3rd. Some of the non epidemic hot spots may be slightly relaxed after April 20th.

Influenced by India's sealing up, over two weeks, India's trade, production and transportation (including shipping, shipping) and exchanges have been greatly reduced or even cancelled.

According to statistics, as of the first ten days of April, several ports in India were closed and over 50 thousand containers were left behind. India's cotton processing and export, cotton gauze production and sales, clothing, foreign trade and other industrial chains have been strongly impacted. Not only did the spinning and weaving enterprises start a sharp decline in their start-up rates, but also the number of closed doors increased, and the unemployment rate continued to rise.

A cotton exporter in India said that since the late March, domestic cotton consumption demand and cotton exporters at the same time pressed the "pause button"; in addition, European and American purchasing enterprises and retailers have cancelled orders or unlimited delayed shipment, so the situation is deteriorating step by step; we hope that the government departments will lift the measures of "sealing the country and sealing the city" as soon as possible, so as to make cotton textile production, cotton and cotton yarn as soon as possible. Export business returned to normal.

According to the survey, due to the sharp decline in the price of cotton and cotton in India, a part of cotton and cotton yarn export contracts can not be implemented, and the fact is broken. If the contract can not be shipped and fulfilled before and after the end of April, the peak of the destruction will come as scheduled.

It is worth noting that China's recent export to India's foreign trade enterprises need to guard against the extension of cargo transport time, and to India after the local no pick up, transport is not smooth.

For the grim situation of the epidemic, India Garment Manufacturers Association (CMAI) said that more than 80% of India's clothing industry is small and micro enterprises, most enterprises can not afford to carry on 3 to 6 months of the epidemic. According to its statement, there are about 3700 registered enterprises in the Association (CMAI), employing more than 700 thousand people. If the India government does not take assistance in wage subsidies or in the resumption of work plans, it will lead to a significant reduction in the entire textile industry in India, with a total number of layoffs or up to 10 million people.

CMAI has conducted a survey among its members and analysed about 1500 replies, of which nearly 20% are considering closing the business after the blockade. At least 60% of them expect income to drop to 40%, which is huge if employed.

As the textile industry is an important economic pillar of India, once it falls, it will cause serious consequences. According to the latest prediction of Barclays Bank, the total blockade measures will make India lose 234 billion 400 million US dollars. Recently, the India central bank also admitted that India's economy could not achieve 5% growth rate in 2020 due to the impact of the epidemic.