India is among the top 4 garment manufacturers after China, Bangladesh and Vietnam.

The
Garment Industry is one trillion industry. Almost 33% of its knitwear production and about
20% of its woven-garment production, both by volume, enters export markets. Overall, about
25% of the volume of its garment production goes into export markets, leaving 75 % for
domestic consumption.

The textile industry in India traditionally, after agriculture, is the only industry that has
generated huge employment for both skilled and unskilled labour in textiles. The textile
industry continues to be the second-largest employment generating sector in India. It offers
direct employment to over 35 million in the country. According to the Ministry of Textiles,
the share of textiles in total exports during April–July 2010 was 11.04%. During 2009–2010,
the Indian textile industry was pegged at US$55 billion, 64% of which services domestic
demand. In 2010, there were 2,500 textile weaving factories and 4,135 textile finishing
factories in all of India. According to AT Kearney’s ‘Retail Apparel Index’, India was ranked
as the fourth most promising market for apparel retailers in 2009.

India is first in global jute production and shares 63% of the global textile and garment
market. India is second in global textile manufacturing and also second in silk and cotton
production. 100% FDI is allowed via automatic route in textile sector. Rieter,
Trutzschler, Saurer, Soktas, Zambiati, Bilsar, Monti, CMT, E-land, Nisshinbo, Marks &
Spencer, Zara, Promod, Benetton, and Levi’s are some of the foreign textile companies
invested or working in India.

[CITATION Pal091 \t \l 16393 ]The Industry covers over one lakh units and employs about 6
million workers, both directly and indirectly in almost equal proportion. The indirect portion
helps to sustain the direct production sector in the shape of items associated with the garment
industry production including sewing/embroidery thread, buttons, buckles, zippers, metal
plates, cardboard sheets, plastic butterflies and packaging material.
India with strengthening its intellectual and manufacturing base with the strong support of
infrastructural, technological and IT sector has given it the true feel of global success. Over
the years, the country has experienced the development of some regions as specialized in
niche products, making it more convenient for international players to source and work in
India. Some of such garment industry hubs are Ludhiana, Bangalore, Delhi, Tirupur and
Jaipur. Some of the centres and the kind of garments they are famous for are:
Ludhiana for knit apparel. It has created a niche for small quantities of high value products. It
holds the traditional strength in flat knit apparel. It has specialization in T-shirts, sweaters of
both woollen and cotton blends.

Bangalore for trousers & structured garment destination. The city with sound base of latest
technology and IT Systems for high productivity in basic garments like trousers and jackets.
Even factories from other states have invested in Bangalore for production of trousers and
structured garments. 

Tirupur for knitwear. The city has witnessed the fastest growth of the knitwear sector from
India in the last 10 years, largely because of the infrastructural development the city has
experienced during this time. It is one of the largest foreign exchange earning towns in India.
There are some 7,000 garment units in the town that provides employment opportunity to
close to one million people. More than fifty per cent of India's total knitwear exports come
from Tirupur.

Delhi for innovative and value-added products. This garment industry is known for its ability
to develop innovative products and focus on value addition.

Jaipur for handicrafts and traditional prints. It is famous for its Handwork and Traditional
Prints. It is evolved as the small quantity high fashion centre for handwork products.

Geographically considering, men's garments are largely produced in western and southern
India while production of ladies’ garments predominates in North India. Eastern section of
India specializes in children garments where in fact.

Fibre-wise, 80% of the production is of cotton garments, 15% of synthetic/mixed garments

and the rest of silk and wool garments.
The industry manufactures over 100 different types of garments for men, women and
children. These includes overcoats/raincoats, suits, ensembles, jackets, dresses, skirts,
trousers, shirts, blouses, inner-garments, T-shirts, jerseys/pullovers, babies’ garments as well
as accessories like shawls/scarves, handkerchiefs, gloves and parts of garments.
Fabric constitutes 65 to 70% of the cost of production with labour making up a further 15%
and the rest go for overheads and manufacturer's profit.

Organized sector of the garment industry is roughly 20% of the total industry, concentrating
chiefly on exports. These are usually limited Companies while the rest are proprietary or
partnership Companies. Fabric constitutes 65 to 70% of the cost of production with labour
making up a further 15% and the rest go for overheads and manufacturer's profit.
The industry manufactures over 100 different types of garments for men, women and
children. These includes overcoats/raincoats, suits, ensembles, jackets, dresses, skirts,
trousers, shirts, blouses, inner-garments, T-shirts, jerseys/pullovers, babies’ garments as well
as accessories like shawls/scarves, handkerchiefs, gloves and parts of garments.

[ CITATION DrM07 \l 16393 ] Export of garments and accessories from India are routed to all
corners of the world. However, the USA, EU and Canada together account for 70% of world
exports. Markets in Asia, Africa, East Europe, Australia, New Zealand and countries in the
Pacific Ocean account for the rest.

Immediately after the cessation of ATC (Agreement on Textiles and Clothing) in December
2004, limiting exports of textiles and garments from India, there was a 25% spurt in exports
of garments in the following year. This has since slowed down to around 10%. A number of
supplying countries from Asia have come into existence, notably, Bangladesh, Vietnam, Sri
Lanka, Cambodia and Pakistan resulting in cut-throat competition in the supply of popular
varieties helping to bring down prices. India has had to adopt innovative practices by
upgrading the quality of product in order to sustain (leave alone increase) her market share in
the world community. In recent years, appreciation of the Indian Rupee vs.US $ and the
downslide in US economy has had a restraining effect on garment exports from India, but the
industry is now coming to terms with the development. As a labour-oriented industry, the
activity in production and marketing has now shifted to Asia with India and China being
leading suppliers as well as markets for garments.
The challenges the garment manufacturing industry will face post lockdown since completing
the back orders will take a lot of time also the prevailing uncertainty as to where things stand
will also cause problems. Since the time many of the state governments allowed the
manufacturers they have been trying to assess and understand how to respond to the order
books which has proven to be quite the task. Many international brands that had given orders
earlier gave the go ahead to restart their orders which was put on hold during March.
However, many other brands cancelled their orders and the payments to be received on the
back orders have not been completed in full. Some brands have cut down on the order
quantity and have offered to cover fabric purchases made by the company for the cancelled
portions.
The first order of the business was to complete the half-made garments when the lockdown
was imposed. The manufacturers hope that even though the orders for some of the work-in-
progress were cancelled there is no option but to complete them and pack them and wait to
extract some, albeit marginal value by selling it into the domestic market.
Productivity level will not be the same since the entire floor has to be rearranged to ensure
the workers are stationed at mandatory social distance which means that less than the licensed
capacity of the workers would be present to work. Another issue would be to bring back the
workers who had gone off to their villages due to the lockdown when the factories were
closed. Since the supply chain are still gummed up and many of the textile mills and finishing
houses closed the factories have to work with the fabric in its warehouse or in transit which
would not last a long while but if things do not return to the normal there would be a lot of
problems.

Deeply concerned by the economic impact due to the lock down in the country caused by
COVID-19 the Clothing Manufacturers Association of India (CMAI) conducted a survey
amongst its members to get a sense of how the members were facing up to the current
circumstances and how they were forecasting the period after lock-down is lifted. An analysis
of the first 1500 responses, indicated the significant crisis brewing in the domestic garment
industry. Only a comprehensive support package from government can cushion the potential
collapse of the Industry. Several important measures have been announced by the
Government, but it is clear that the industry, especially its MSME members which constitute
90% of the industry, needs more support.

Wage subsidy and working capital support for the long working capital cycle is the need of
the hour. 1500 plus CMAI Members with sales of about Rs. 60,000 crores and employing
400,000 plus people, have reported that there could be more than 40% drop in demand after
the lockdown. Based on this, CMAI which has close to 4000 members primarily in the
Domestic Branded Apparel Manufacturing, believes that the Domestic Apparel Industry
could take a hit of almost Rs 1 lakh crore due to the lock down and the expected significant
slow-down in economic growth once the lock down is lifted. The estimated drop in sales
would mean that almost 50 lacs jobs in the Apparel Industry are at risk.

With a global slow down, and the cascading effect on other sectors of the Textile Industry,
almost 1 crores job may be lost in Textiles & Apparels alone. 80% of the members who
participated in the survey have indicated that they will need to down-size their organisation
immediately. A minimum 30% reduction in employee count and about 20% reduction in
salaries for all continuing employees is the action that CMAI Members are likely to take to
ensure survival after the lock down is lifted. 80% of the members who participated in the
survey have indicated that they will need to down-size their organisation immediately. A
minimum 30% reduction in employee count and about 20% reduction in salaries for all
continuing employees is the action that CMAI Members are likely to take to ensure survival
after the lock down is lifted. 90% of the members expect 30-40% increase inventory due to
Zero sales during the lock down. Further 100% of members are worried of collection from
trade post the lock down. 25% of the collections may become bad-debts and members
expected a minimum 90 days additional delay in collections. The choking of working capital,
will lead to a delay in reviving factories and thus 75% of the members expect normalcy in the
market only in FY 2021-22.
https://economictimes.indiatimes.com/industry/cons-products/garments-/-textiles/domestic-
apparel-industry-could-take-a-hit-of-rs-1-lakh-crore-due-to-lockdown-cmai-
survey/articleshow/74910800.cms?
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