Nearly 250 garment factories have shut down in Noida, a satellite city of New Delhi, India.
Just over a year ago, Noida, which is popularly known as the “City of Apparel,” was bustling with 1,500 garment export businesses. The pandemic, unfortunately, has dried up business from Europe and other global markets. Strict lockdowns have further prompted artisans to leave the city and resettle in their hometowns.
“The most affected ones were the manufacturers who had rented warehouses. Workers left and several orders were canceled. It was a challenge to pay the establishment costs. Some people hung around for a while and then shut shop,” said Rajiv Bansal, the national secretary of Indian Industries Association (IIA), who is also a Noida-based garment manufacturer and exporter.
The IIA expects business to pick up in the coming months as vaccination rates improve in Europe, a major source of business for the hundreds of garment factories in Noida.
“Once most people get the vaccine in Europe, orders will start coming in. Now, there is no stock and there are no containers to ship the orders. If the situation is under control then there is no reason why we can’t recover,” said Kulmani Gupta, president of IIA Noida.