The garment industry across Uttar Pradesh (UP), particularly in Noida and Kanpur, has reported 40 percent slump in production and a considerable drop in export.
After successive slowdown of two years, the garment industry was showing signs of recovery from November 2021 onwards when the Covid third wave began from January.
According to the IIA, there has been a decline of 42 percent in the credit (loan) in Kanpur region which is one of the two hubs of textile industry in the state.
There are over 10,000 textile and garment units across the state with most of them located in Kanpur and Noida region.
In Noida region there are around 3000 textile units and each unit has a minimum workforce of around 100 employees.
Nearly all of them are facing financial crisis as foreign buyers are reluctant in placing orders. That’s because the buyers are apprehensive whether these textile and garment units will be able to fulfill the order due to the prevailing Covid-19 conditions.
Weekend lockdown in New Delhi and night curfew in adjoining Noida has affected movement of workforce between the two regions.
“Retail traders associated with the garment industry are now buying from West Bengal, Madhya Pradesh, Rajasthan and Maharashtra,” said Rajiv Bansal, National Vice President, Indian Industries Association (IIA).