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Productivity in the Apparel Sector of India given Covid 19 Pandemic, Papers of Operational Research

Productivity in the Apparel Sector of India given Covid 19 Pandemic: Impact of Covid and Steps by industry to enhance productivity

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2019/2020

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Apparel Made Ups & Home Furnishing Sector Skill Council
Productivity in the Apparel sector given
COVID-19 pandemic
Apparel Industry in India
India is one of the largest producers of Textiles and Apparel in the world. The industry employs
45 million people in India making it the second-largest employer of the country. With the
availability of skilled manpower and competitive manufacturing costs, the industry is seen to
have steady growth over the years.
The Textile and Apparel industry contributes 2.3% to India’s GDP, 7% of the country’s
manufacturing production and 13% of the country’s export earnings (Invest India, 2020).
Impact of COVID-19
The COVID-19 pandemic has resulted in a lot of distress worldwide. In India, since the
nationwide lockdown, millions of people have faced unemployment, pay cuts and many have
migrated to their hometown. The apparel sector has been affected majorly by the pandemic by,
1. Labour force
The Apparel sector employs millions of people. With the nationwide lockdown
due to the rise of COVID-19 cases, many production units had been closed and
the apparel sector had come to a standstill. The labourers chose to go back to
their villages with rising unemployment and wage cuts. This large-scale
migration of labours now raises a major question as to how the apparel sector
will rise back to its feet with the loss of its workforce.
2. Demand
The domestic consumption of apparels has been impacted severely due to
nationwide lockdown. With the decrease in footfall in the mall's many stores
have been shut for months facing an inventory build-up. Although many stores
and malls have reopened, the apprehension of the people has reduced their
consumption. With such low demand, the prices have been falling making it
hard to break-even.
3. Exports
The COVID-19 pandemic has adversely affected the apparel exports as well as
imports worldwide. With the increasing order cancellations, deferral of orders
and restrictions, there has been huge inventory build-up. As the export orders
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Apparel Made Ups & Home Furnishing Sector Skill Council

Productivity in the Apparel sector given

COVID-19 pandemic

Apparel Industry in India

India is one of the largest producers of Textiles and Apparel in the world. The industry employs 45 million people in India making it the second-largest employer of the country. With the availability of skilled manpower and competitive manufacturing costs, the industry is seen to have steady growth over the years. The Textile and Apparel industry contributes 2.3% to India’s GDP, 7% of the country’s manufacturing production and 13% of the country’s export earnings (Invest India, 2020).

Impact of COVID- 19

The COVID-19 pandemic has resulted in a lot of distress worldwide. In India, since the nationwide lockdown, millions of people have faced unemployment, pay cuts and many have migrated to their hometown. The apparel sector has been affected majorly by the pandemic by,

1. Labour force The Apparel sector employs millions of people. With the nationwide lockdown due to the rise of COVID-19 cases, many production units had been closed and the apparel sector had come to a standstill. The labourers chose to go back to their villages with rising unemployment and wage cuts. This large-scale migration of labours now raises a major question as to how the apparel sector will rise back to its feet with the loss of its workforce. 2. Demand The domestic consumption of apparels has been impacted severely due to nationwide lockdown. With the decrease in footfall in the mall's many stores have been shut for months facing an inventory build-up. Although many stores and malls have reopened, the apprehension of the people has reduced their consumption. With such low demand, the prices have been falling making it hard to break-even. 3. Exports The COVID-19 pandemic has adversely affected the apparel exports as well as imports worldwide. With the increasing order cancellations, deferral of orders and restrictions, there has been huge inventory build-up. As the export orders

get cancelled or delayed, the inventory is being dumped in the domestic market further reducing the margins and the profits for the sellers.

4. Supply-chain disruption The reduced production, interstate transport issues, fall in exports, cancellation of international garment fairs and other safety restrictions due to the lockdown has crippled the sector. The decline in exports majorly has led to the apparel manufacturers are looking for local sourcing opportunities. 5. Significance of eCommerce With social distancing and hygiene becoming our top priorities, online shopping has become the new normal. People are shifting to online shopping as its more convenient and safer. This lifestyle change is making this pandemic an inflexion point for the eCommerce industry in India. 6. PPE PPE (Personal Protective Environment) according to WHO includes garments used by people, especially health care workers, from getting infected.

  • Masks
  • Gloves
  • Gown With the increase in cases around the globe, the global demand for PPE is on the rise. Thus, PPE is the next big apparel opportunity for India. As most apparel companies were shut down due to the lockdown, PPE came like a little beacon of light. PPE’s urgent need created an entire industry overnight. With the export opportunities and the efficiency in producing PPE kits, India is said to be one of the major players in the field.

Steps by the industry to enhance productivity in the times of COVID- 19

COVID-19 has posed various difficulties in the working environment. The government has imposed strict guidelines to prevent the transmission of the virus and protect the wellbeing of the people. With the new social distancing measures, it has become tough to accommodate the same manpower in the production units as before. To meet the production requirements and maintain efficiency, the apparel sector has adopted the following measures -

1. Awareness Steps are taken to educate and inform the workers about the virus, it’s prevention and the guidelines. With more and more people re-joining work, it has become important to constantly remind them of the importance of following government guidelines. This is being done by installing a display board of rules, being supervised by staff, and routine temperature checks.

References

  1. Invest India (National Investment Promotion & Facilitation Agency)
  2. YourStory
  3. BW Business World
  4. Apparel India June issue 2020