UMARGAM INDUSTRIES ASSOCIATION Reaction for Covid 19

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The Indian textile industry, currently estimates at around US$ 108 Billion, and expected to reach US$ 223 Billion by 2021. The textile industry itself contributes approximately 5% to India’s Gross Domestic Product (GDP), and 14% to the overall Index of Industrial Production (IIP).

We would like to stress that protecting livelihoods and industry ought to go hand in hand. In that spirit, we the textile sector are concentrated on making sure that there is a strong response to the health crisis and protecting the strength of the economy, but this will not be possible without the help of the Central as well as the State Government’s bailout package.

As directed by various government directives, salary and wages are being processed, and also temporary layoffs have been held, on account of humanity grounds. However this is going to financially bleed the entrepreneurs in times of no productivity and no revenue being generated. To add to the difficulty, the cash flow has come to a grinding halt and thesituation is very scary at the moment.

We would like to urge the Central and State Government, to create a short term liquidity line to bail out the textile sector from the current crisis.

We sincerely appreciate the deferment in the payment of the electricity bills, but at the same time would also like to draw your attention to the below mentioned grants that is the need of the hour.

1. A six month deferment of EMI’s on all type of loans, provided to industry, with no interest accumulation on the deferment period.
2. A short term loan with no interest for six months, to industry on an immediate basis, to compensate the loss in revenue during the lock down period and during re-starting of industry and operations.
3. Employer contribution toward EPF to be borne by the Govt. For a period of six months irrespective of the strength of the organisation.
4. Electricity tariff rates to be reduced in Gujarat state in this crisis.

The above measures if implemented would ensure a quick and certain cash flow back into the system, thereby ensuring the growth of industry and also protecting manpower. This will ascertain that the productivity and economics of the industry is not hampered and the textile sector will remain strong fornow and for the future.

views by –

TEXTILE COMMITTEE

UMARGAM INDUSTRIES ASSOCIATION.