In the planned city of Noida, a satellite city of Delhi and part of the National Capital Region once home to 1,500 garment export businesses following its designation as an apparel hub by the provincial government of Uttar Pradesh, the pandemic has wiped out as many as 250 garment businesses in the last year, according to Indian Industries Association (IIA) national secretary Rajiv Bansal, as quoted by India’s Economic Times newspaper.
One year after the outbreak of the pandemic saw international orders grind to a halt and a harsh lockdown in India drive many workers back to their hometowns, it has proven difficult for many local garment exporting businesses to stay afloat.
“The most affected ones were the manufacturers who had rented warehouses. Workers left and several orders were cancelled. It was a challenge to pay the establishment costs. Some people hung around for a while and then shut shop,” said Bansal, who is also himself a Noida-based garment manufacturer and exporter.
According to comments from the Noida branch of the IIA, they are hopeful that orders from Europe (a major destination for Noida garment exports) will begin returning by July.