Around 1,00,000 People Unemployed in Noida Alone in garment industry.

The impact of Covid 19 has started to show its worst phase.

While on one hand India is seeing an unprecedented rise in Covid 19 cases on the other the unemployment, GDP and loss of business and work is touching new high.

Garment industry which is the second largest employer after agriculture is facing a very challenging phase.

The industry which is mainly dependent on orders from international markets like the US and EU is facing delays in payments and cancellation of orders ever since the pandemic hit.

The extended lockdown added on to the woes.

Migratory workers who are the backbone of garment industry went back to their hometowns after they could not bear the brunt of scarcity of money, food and shelter due to extended lockdown and now even after four months of unlocking many of the migratory workers are not back to work.

All this has deeply affected the growth of garment export sectors across India.

Be it Tirupur, Bangalore, Mumbai, Ludhiana, Delhi, Noida, Gurgaon or Jaipur none of the state could resist the aftershocks of Covid 19 and lockdown.

Team Perfect Sourcing did an extensive research on the current status of business, unemployment, production, and manufacturing in garment units in India. A report….

NOIDA: Loss of More than 1,00,000 Jobs and Business Worth Rs 4000 cr

Noida which has approximately 1000 units making world class garments for international markets is severely affected.

Known for its cheap labour and rates and land rates it has become an important hub for production in the last few years.

However, the situation is disappointing as many of the units are either running on 20% capacity or have closed down.

The hub which is believed to be doing an annual turnover of Rs 10,000 cr is facing shortage of labour as most of the migratory labour has either not come back or does not plan to return in the near future.

“In normal circumstances an average turnover from Noida is around Rs 5000 cr in six months; however, in current circumstances hardly 20% business was done.

Therefore, the business loss should be around Rs4000 crores so far,” said Rajeev Bansal, MD, Celestial Knits and National Secretary of Indian Industries Association.

He further pointed out, “50% jobs have been lost due the pandemic in Noida alone and the number would be somewhere around 1,00,000.”

The worst part is that how soon the situation will change is still a big cause of concern for exporters as they are not seeing any new orders before March 2021

It is speculated that exporters would miss the western Christmas market of 2021 also at it takes at least one year to prepare for the orders which looks difficult in current situation.

The garment sector is the worst hit as the consumer pattern has changed globally overnight and for them buying clothes is no longer a priority.

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