GURAGON – Much-need research has shed light on the devastating economic impact of the Covid-19 pandemic on India’s garment export industry. Exporters from key manufacturing hubs including Tirupur, NCR, Bangalore, Ludhiana, Panipat, Ranchi and Chennai were surveyed.
On average, it was found each factory had US$1.49m worth of orders on hold, while more than half of respondents (56 per cent) said payments were delayed. In a fifth of cases, customers refused to pay for orders placed on hold.
Out of cancelled orders, in 43 per cent of cases no payments were received, while in 35 per cent of cases partial payment for materials was received. In just 22 per cent cases, the buyer had agreed to pay for costs associated with cancelled orders.
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