Tiruppur (Tamil Nadu): Tiruppur, a city in Tamil Nadu, also recognised as the knitwear capital of India, accounts for 90% of India's cotton knitwear export. It has spurred up the textile industry in India for the past three decades.
It is also a source of foreign exchange earnings of over Rs 26,000 crore a year. But, due to the unforeseen coronavirus outbreak, the industry has witnessed a huge slump in demand, thus making it the worst ever in history.
According to the reports, the knitwear products worth Rs 6000 crores exported from Tiruppur in early March, have got stranded until now in various ports of Europe, Australia and the United States due to curfew imposed to contain the spread of the deadly virus. Following which the payments of the supplies got impaled.
The industry is facing even tough times as the small scale industries have cancelled their imports, citing the reason- "outlets of various brands are closed". It is estimated the industry will suffer a huge loss of Rs 10,000 crores.
Talking exclusively with ETV Bharat, Exporters Association President Raja Shanmugam said, “In the present scenario, even if the curfew is lifted, it will take almost 6 months to one year to start and restore the production to the normal level.
Also Read: World economy bound to suffer 'severe recession': IMF
He further affirmed people all over the world are spending much on food and clinical materials. Even, the curfew imposed will be lifted, only the demand for food will remain prominent.
The impact will affect not only the industry but also the labourers, and cause various indirect chain reactions, such as unemployment.
Further, the Exporters Association President insinuated various steps to combat the crisis;
- It is impossible for the government to continue providing financial aid to workers and the economically weaker sections. Therefore, if the government promotes industry, employment opportunities will increase. Subsequently, the economy of the country too will improve.
- Bank loans should be given to the industrialists at much lower interest rates.
- The government should extend financial help to the labourers through the employee state insurance scheme.
Moreover, the Exporters Association President has warned that even 10-20 per cent job losses among its 7.3 million employees in the cotton industry across the country would mean up to 15 lakh unemployed. Something that would have severe social consequences.
Meanwhile, economic experts claim that the Indian economy is expected to lose over Rs 32,000 crores (US$4.5 billion) every day during the first 21-days of complete lockdown.
