Small And Medium Sized Textile Enterprises In India Are Struggling

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? ? ? ? Since the outbreak of the epidemic in India, according to the latest data, the total number of confirmed cases in India has exceeded 32 million, and the death toll is close to 440000. Many garment industries are difficult to produce and even closed down.

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? ? ? ? In southern India, the city of Tirupur is known as the "textile and clothing capital of India". Here, there are more than 17000 garment processing enterprises, and established relevant supporting industrial chain. Although compared with Guangzhou in China, there is still a considerable gap, but its scale and supporting services are gradually mature. More than half of India's clothing comes from here, as well as a large number of overseas orders.

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? ? ? ? However, the epidemic changed everything. As the outbreak of the epidemic in India has not been completely controlled, the Indian market has shrunk. At the same time, many overseas orders have also been affected by the epidemic. In addition, workers are often infected, leading to a decline in production efficiency. In the end, many small and medium-sized factories were forced to close temporarily or declare bankruptcy directly because they could not bear the losses. However, some large factories are facing three embarrassing problems.

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? ? ? ? First of all, under the epidemic situation, workers either fall ill or ask for leave. Their attendance is extremely unstable, but the factory has no way to deal with it. At the same time, the factory also faces the problem of difficult recruitment, resulting in extremely unstable production capacity.

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? ? ? ? Secondly, because some large factories still have a lot of orders in hand, they can't stop work. Once shutdown, not only orders and customers will be lost, but also a large amount of liquidated damages will be faced. Therefore, even if we have to work hard, we have to keep some of our production capacity. However, even if some of the production capacity can be maintained, it is still difficult to compare with the peak production capacity, which also makes them have empty orders, but not enough capacity to complete, so they have to transfer this part of the orders to China.

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? ? ? ? Finally, it is also the most embarrassing issue for Indian enterprises. That is, with up to 20% of clothing orders transferred to China, a large number of overseas orders also "bypass" India and go straight to China. As a result, with India's "God assisted attack", China's clothing exports actually increased by 17.3% from January to May this year. In only half a year, the total export volume reached 112.7 billion US dollars.

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? ? ? ? Faced with this situation, frankly speaking, Indian enterprises are "very unhappy", but they have no way out. Throughout the world, only China can take 20% of India's clothing orders, and the quality of the clothing produced can be guaranteed. In this way, Indian companies can at least retain customers.

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? ? ? ? Prior to this, the relevant department of India has given a group of survey data, according to the data, the clothing production factory in Tirupur city lost more than 100 billion rupees during the epidemic period. According to the current exchange rate, it is about 8.686 billion yuan. However, the real loss is even greater, likely to reach 10 billion yuan. However, India can only turn to China to transfer 20% of its orders to China, hoping that China can undertake the business. Why choose China instead of Vietnam or other countries?

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? ? ? ? First, China is close to India. At present, the epidemic situation in China is stable, while Vietnam and other Southeast Asian countries are still in the hot spot of the epidemic. Only China has the ability and strength to undertake orders.

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? ? ? ? Second, China's textile industry is also well-known in the world with high quality. It is absolutely reliable to find China.

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? ? ? ? Third, China's market is huge. Many countries sell clothes to China after they have made clothes in India. Now they can sell them directly to China, saving tariffs, which can be said to be a win-win situation.

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? ? ? ? For this reason, some western media said that because of the epidemic, Tirupur city of India missed an excellent opportunity to narrow the gap with Guangzhou, China. On the contrary, in terms of clothing production and export, due to the epidemic situation, the gap between the two sides is growing. However, some Indian economic "experts" gave different views. In the opinion of Indian experts, although the epidemic has caused a great impact on the clothing production in Tirupur, it is also a major "shuffle event".

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? ? ? ? After the outbreak, large and medium-sized garment factories in Tirupur will absorb more labor and integrate the market. After that, the strength of medium and large garment factories and enterprises in Tirupur will only increase instead of decreasing. In the long run, this will lay the foundation for the rapid development of India's garment production and export.

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? ? ? ? However, compared with the optimism of "experts" in India, the local people said that we could not compare with China at all. This is the case with the epidemic, manufacturing, and clothing production. China's clothing exports are growing, and even if the local garment factories can survive the epidemic, they will eventually "save three out of ten.".

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? ? ? ? The closure of a large number of factories means that there will be a lot of local unemployment. So, how can the situation be optimistic. For the opinion of Indian "experts", the attitude of local people is very clear. They think that "experts" are standing and talking without backache, which is of no use at all. Nevertheless, local factories are still trying to survive and apply for subsidies from the local city-state, hoping to survive the "cold winter".

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? ? ? ? In general, the impact of the epidemic on the world is particularly great, especially for labor-intensive industries.

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