Indian textile MSMEs are staring at business uncertainty in coming weeks. Fresh COVID restrictions including lockdown, night curfew, weekend curfew, etc, across the country, are threatening production. Over 60-70 per cent of MSMEs units are operating at a production capacity of around 70-80 per cent while it should have been 100 per cent till now, says Ashok Juneja, President, The Textile Association (India).
Juneja expects MSMEs to ensure labor doesn’t migrate back to hometown again. The sector is largely unorganized with no comprehensive information regarding the impact of last year’s lockdown even as the level of production fell in jute, silk, etc, he says.
As per Udyam Aadhaar Portal, the total textile manufacturing MSMEs registered between September 2015 to June 2020 were 651,512 while apparel MSMEs were 428,864. According to Udyam Registration, which replaced Udyam Aadhaar in July last year, 115,855 textile manufacturing MSMEs and 85,564 apparel MSMEs were registered between July 1, 2020, and February 9, 2021.
Up to March last year, all these textile units were running up to 80-90 per cent of their capacity before they contracted in production capacity to 30-40 per cent. The activity picked up in September and by December it scaled to 80-90 per cent production capacity.. However, the performance has been sliding again from March 2021 due to COVID and currently, it stands at 60-70 per cent. If there is a complete lockdown, the production capacity might decline to previous year levels, adds TK Sengupta, Immediate Past President, The Textile Association (India)