JV JAIN DEGREE COLLEGE SAHARANPUR

Maa Shakumbhari University

A PROJECT REPORT
ON

“Impact of pandemic
pandemic(Covid 19) on Textile Industry”
Industry

SESSION 2023
2023-24
IN PARTIAL FULFILLMENT
Degree of
M.COM-
M.COM 3rd Sem- 2024

SUBMITTED TO: SUBMITTED BY:

Dr. Neeraj Kumar Name: Vidhi Gupta
(Ph. D, D.Litt) Class: M.Com 3rd Sem
Roll No. : 22380020054
 ACKNOWLEDGEMENT

The Completion of report “Impact of pandemic (Covid 19) on Textile

Industry “ has given us immense pleasure and knowledge. It is an Incident
of great pleasure submitting the report, Obligations were heavy and
many during our report work.

I would like to thank Dr.Neeraj Kumar ( Asstt. Professor).Dr. Hari Om

Gupta (Principal) for his guidance and support as a faculty guide as
project guide. I am sincerely thankful to Dr Pankaj Gupta (H.O.D) who
have directly and indirectly helped me in completion of the research
report.

Date:

Sign

Vidhi Gupta
M.Com 3rdsem 2024
 CANDiDATE DECLArATiON

I hereby declare that the work which is being presented in the project
report entitled “Impact of pandemic (Covid 19) on Textile Industry” in
the partial fulfilment of reuirement for the award degree “master of
Commerce” From J.V Jain Degree College, Shahranpur is record of my
own work and that project has not been submitted elsewhere for the
award of any degree, Diploma, Associateship, fellowship or any other
similar title.

Date:

Sign

Vidhi Gupta
M.Com 3rdsem 2024
 Dr.Neeraj Kumar

Ph.D,D.Litt

J.V Jain College Sahahranpur

CERTIFICATE

I have the pleasure in certifying that vidhi gupta is a bonafide of 3rd semesterof the
Master of commerce of Maa Shakumbari University, Shaharanpur.

She has completed her interim report work entitled “Impact of pandemic (Covid 19)
on Textile Industry”

I certify that to best of my knowledge this is her original effort and not been copied
from any other sources. The Project has not been submitted in any other university for
the purpose of award of any degree.

Signature….

Name of the Guide.Dr.Neeraj Kumar

Date:
 Index
S.No Particular Pg.No
1 Introduction 1
- Brief History 3
- Structure of indian textile industry 5
- Strength & Challenges 7
2 Literature Review 10
- Effect of covid-19 pandemic on textile industry 11
- Effects of Epidemics/Pandemics on Economic, 18
Social and Political Aspects
- Manpower & Migration Plight in India 23
3 Research Methodology 27
- Introduction to research methodology 29
- Objective of study 31
- Plan and Research Design 32
- Collect the data 34
4 Analysis of Impact 41
- Consequences of COVID-19 Pandemic on 47
Textile Industry of Surat
- Livelihood & Migration Plight of Workers 48
- Relevance of Government Interventions 54
5 conclusion 58
 Introduction

Background
COVID‐19 or Corona Virus Disease is an infectious illness caused by a virus belonging to the
Coronavirus family, that is, Severe Acute Respiratory Syndrome ‐ Coronavirus 2 (SARS‐CoV‐ 2). It
spread rapidly following its first detection in December 2019 in Wuhan, Hubei, China (Department of
Economic Affairs, March 2020). COVID‐19 was declared as Pandemic1 on 30th January, 2020 by
World Health Organization (WHO) after several cases were reported from more than 100 countries
across the globe.

Reported COVID‐19 cases crossed 4.44 Crore in India and 60 Crore worldwide as on 20th August
2022. After the United States, India is one of the country’s worst afflicted by the

COVID‐19 epidemic. The global and Indian economies have taken a severe hit as aconsequence of
the COVID‐19 pandemic and the subsequent multi‐phased lockdown2 or travel restrictions enforced
by governments throughout the world to stem the spread of the virus. Government of India
announced a nationwide Lockdown from 25th March 2020. India's GDP was already on the decline
before the epidemic hit because of sluggish consumption, lethargic investments, and issues with
Goods and Services Tax (GST). Therefore, the onset of the Covid‐19 pandemic and related
restrictions made it even worse. This disruption in economic activities reduced India’s already
lagging GDP growth rate to worrisome extent and as per World Bank, the present pandemic
has"magnified pre‐existing risksto India's economic outlook". Consequences of COVID‐19 pandemic
and subsequent lockdowns in India didn’t have its impact just on economic aspect but the society
had to face severe social and political consequences too. The Government of India’s Department of
Economic affairs reports that in the fourth quarter of the fiscal year 2020‐2021, growth in India
slowed down to 3.1 percent(Department of Economic Affairs, March 2021) The World Bank

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drastically reduced its prediction of India's economic growth in the 2020 edition of the Global
Economic Prospect,the largest such reduction since India's economic liberalization in the 1990s. In
2020, India's chief economic adviser blamed the Coronavirus outbreak for the country's economic
downturn (Das, 2020).

The unemployment rate increased from 6.7% on March 15th, 2020 to 26.1% on April 19th, 2020, and
then returned to its pre‐lockdown level by mid‐June of that year. Approximately 14 Crore (140
million) individuals lost their jobs during the shutdown, and many more witnesses reduction in pay.
A significant portion of American families (more than 45%) have seen their income decrease as
compared to the prior year. According to reports by Acuité Ratings (2020) and PTI (2020), India lost
almost 32,000 Crore (US$4.5 billion) each day in economic activity during the first 21 days of the
complete lockdown ordered following the corona virus pandemic. Only about a fifth of India's $2.8
trillion economy was operating normally when it was under lockdown. It was estimated that as many
as 53% of companies throughout the nation will be seriously impacted. Stress has been imposed on
supply chains as a result of lockdown regulations; initially, there has been confusion over what
constituted an "essential" product and what did not. The most vulnerable have been the members
of informal economy and those earning daily wages such carpenters, plumbers, painters and
labours. Many farmers who raise perishable goods were also in great uncertainty.

The Prime Minister of India unveiled a comprehensive economic package called AtmaNirbhar Bharat
Package on 12 May 2020, with a total value of INR 20 Lakh Crore (US$280 billion), or 10% GDP of
India. The plan emphasized India's ability to fight for itself (Department of Economic Affairs, June
2020). It was then followed by several such announcements by the Finance Minister to curtain the
negative impact on the economy, boost the businesses and support households. After the
announcement of the first ‘Unlock’ on 1st June, 2020, the economy started opening gradually from
the standstill after various stages of the lockdown. Several measures of the economy have begun to
indicate improvement by July 2, 2020 (Department of Economic Affairs, August 2021).

Therefore, it became imperative to study impact of Covid‐19 pandemic on textile industry in

particular which employs second highest number of workforces throughout the country andSurat
being oneof the major hubs, the researchhas beenfocused to study impact onbusinesses and
manpower employed here.

Conceptual Overview
Conceptual overview describes the subject under the study in detailed manner. As this study
emphasis on impact of COVID‐19 pandemic on textile industry , therefore it is important to study
Textile Industry and Pandemics, both in detail. This chapter gives an insight into Textile Industry as
well as Pandemics in general.

‐ Textile Industry

Textile industry in general consists of activities concerning cultivation, processing, designing and
distribution of ‐ Fibre, Yarn, Fabric (domestic & industrial) and clothing (apparels). It primarily starts
from cultivation of natural fibre (that is cotton, hemp, jute, flax or silk) and ends with delivery of

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finished product, that is, fabric or garment to the end user. Apart from products made out of natural
fibres, synthetic products in textile industry are made out of synthetic fibres made using products of
chemical industry such as polymers. This chapter describes details of each process in coming parts

Brief History
Textile usage dates back to Palaeolithic4 Age. According to some indications weaving was already
known since that time. Some Neolithic textiles were also found in Egypt and Switzerland dating 5000
BC. Usage of any form of fabric till this time was limited to be used for basic human clothing only. It
then gradually shifted to be used in households as well for minor utilities. Early medieval times saw
extensive usage of fabric asclothing. It was this period which formed the base for people using
clothes the way we do till today. People across continents learned making fibre and fabric through
hand weaving. By 11th century drop spindle and spinning wheel was invented by Islamic world.
Gradually spinning technology reached Europe, China and India and became a basic for making yarn.
By 15th century, leather, linen and wool clothed the European population while the silk imported
from China through silk route has been considered as luxury.

20th century saw major technological changes like new machinery coming up, globalisation of
businesses, synthetic fibres, innovation of rayon, nylon, polyester, spandex etc. Invention of
computer and other modern technologies complimented businesses keen to invest in textiles. By
1980, the apparel segment was outnumbered by industrial and home furnishing. Now, home
furnishing and industrial use of fibre products represented larger share then apparel segment for the
first time in the history of textiles. In recent times, China, India, Italy, Germany, Bangladesh and
Pakistan are major exporters of textiles worldwide.

Processes and Activities involved in Industry

Modern day textile industry employs the under mentioned processes in converting a fibre into
fashion (a cloth or fabric). The very first stage of textile industry commences with the crop of cotton,
or jute or any other textile fibre being cultivated.

A. Cultivation/Procurement/Manufacturing of Fibre

B. Manufacturing of Yarn

C. Manufacturing of Fabric (Grey Fabric)

D. Processing of Fabric (Dyeing, Printing, Embroidery & Other Value Addition)

E. Making Finished Product

Cultivation/Procurement/Manufacturing of Fibre ‐ A fibre comes in several types and shapes. Fibre

is a natural or man‐made substance that is used in manufacturing of fabric. As cultivation is
predominantly a part of agriculture industry, hence it is not under the scope for this study. However,
it is important to understand fibres for a holistic study of textile industry.

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Manufacturing of Yarn ‐ Yarn is manufactured by interlocking raw fibres (natural or man‐ made) into
long and continuous length of thread. It is then used in production of textiles, knitting, embroidery,
sewing etc. It comes in different colour, thickness, size and structure.

Manufacturing of yarn goes through a long process which includes steps like Opening, Blending,
Cleaning, Carding, Combing, Spinning and Winding.

Manufacturing of Fabric ‐ Fabrics, the flexible materials, are made by weaving together threads of
silk, wool, jute, nylon, cotton, or other natural or synthetic fibres to form a network. Fabrics may be
created using one of the two most prevalent methods:

• Knitting ‐ It was a method for making fabric in which loops of the same yarn are joined or
interlaced. Knitting is used to create a wide variety of materials, such as T‐shirts, sweaters, jackets,
and shawls. Knitted textiles' widespread appeal stems from the fact that they can be readily
mass‐produced using yarn or any other fibre, whether it natural or synthetic, like polyester, wool,
nylon, cotton. Knitting may be done by hand, on a computer, or using a machine.

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• Weaving ‐ It's the method of making textiles wherein two types of yarn that is, weft and
warp yarn are interwoven. For example, trousers are made exclusively using the weaving method.
Weaving is of two types – lengthwise and crosswise.

Processing of Fabric ‐ Once the fabric is weaved, it is called Grey Fabric or just Grey. It is then further
processed as per need of purchaser. If it has to be used for making apparel, it is further printed or
dyed or embroidered and stitched, if it is to be used for industrial or furnishing use, it is treated
according to that need as specified by purchaser or middleman (trader).

Processing of Fabric includes Fabric Pre‐treatment which removes the unwanted impurities including
‐ stains, oils, minerals, and colour, from the grey material. Water is used extensively in the
pre‐treatment process, and its quality is crucial to the success of the subsequent textile cleaning. If
the water is of high quality, the end product will be as well.

Making Finished Products ‐ A fabric once dyed or embroidered or processed can be sold as a
finished product. It is bought by other manufacturers and end users. It can be as tapestry, health
industry, other handicraft, heavy industries and anything one can imagine. Cloth or different form of
fabrics is used throughout the globe by different kind of industries as well as household for different
purposes.

Structure of Indian Textile Industry

India's textile industry, in contrast to the textile industries of other major producing nations, is
mostly made up of non‐integrated, small‐scale firms for spinning, weaving, finishing, and clothing
manufacturing. This one‐of‐a‐kind organisation of the market is largely a relic of government
policies, which favoured labour‐intensive, low‐volume businesses on a smaller scale and
discriminated against corporations operating on a bigger scale (South Gujarat Productivity Council,
2015) ‐

•Composite Mills ‐ Mills in other major textile‐producing nations often operate on a somewhat large
scale and frequently include spinning, weaving, and even, on occasion, fabric finishing into their
operations. However, just approximately 3% of the total
production in the textile industry comes from the kinds of mills that are operational here in India.
There are over 276 composite mills functioning in India, the majority of which are controlled by the
public sector and several of them are considered to be "sick" financially.

•Spinning ‐The process of transforming raw natural fibre or man‐made fibre into yarn, which may
then be woven or knitted, is referred to as spinning. The liberalisation that started in the middle of
the 1980s has made spinning one of most interconnected as well as technically efficient sector of

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India's textile industry. However, the average plant size is still rather modest, and the technology is
somewhat old in comparison to that of other big manufacturers.

•Weaving and Knitting ‐Cotton, man‐made, or mixed yarns may be used in the weaving and knitting
processes to create knitted or woven textiles. The knitting and weaving industry in India are still
extremely fragmented, operating on a local scale, and heavily dependent on human labour. There
are around 3.9 million handlooms, 380,000 "power‐ loom" firms that run approximately 1.7 million
looms and only 137,000 looms in the different composite mills that make up this industry.
"Power‐looms" are small businesses that are run by individual weavers or entrepreneurs and
typically have a capacity of between four and five looms. Less than one percent of total loom
capacity is accounted for by modern looms that lack shuttles(South Gujarat Productivity Council,
2015).

•Fabric Finishing‐The process of fabric finishing, which also goes by the name processing and
consists of printing, dying, as well as other types of cloth preparation prior to the production of
garments, is also primarily carried out by a significant number of independent, small‐scale
businesses. In all, there are around 2,300 processors that are active in India. There are around 2,100
machines and 200 unite that work in tandem with other machines to create textiles (South Gujarat
Productivity Council, 2015).

•Clothing ‐Around 77,000 small‐scale units are responsible for the production of apparel. These units
are divided into three categories: domestic manufacturers, fabricators (subcontractors) and
manufacturer exporters. (South Gujarat Productivity Council, 2015).

Textile Industry of Surat

Surat, the textile capital of Gujarat, has been named the world's fastest‐growing city by Oxford
Economics (2018). Surat is home to one of the most and oldest pervasive textile industries in the
world. Most of the city's migrant labour force is connected to the textile trade and manufacturing.
Yarn manufacturing, weaving, fabric processing, and embroidery are the mainstays of Surat's textile
sector. The city of Surat, India, is well renowned as a major hub for the sale of synthetic goods. Its
primary activities include of manufacturing andretailing synthetic textiles. In India, Surat is
responsible for producing over 65% of all manufactured fabrics and 90% of all polyester(South
Gujarat Productivity Council, 2015).

Synthetic sarees and other dress fabrics have made Surat famous, and the city and surrounding area
are home to over 400 manufacturing facilities. Sarees and other dress fabrics made in Surat have
widespread popularity both in India as well as abroad. The grey polyester fabric used as the primary
raw material is sourced from domestic polyester mills. Every day, factories in Surat create over 30
million metres of raw fabric and 25 million metres of processed fabric. Textiles have been traded in
the city's many marketplaces since ancient times. You may find them in places like Jash Market,
Zampa Bazaar, J. J. Textile Market, Surat Textile Market (STM), and Bombay Market. The industrial
heart of Surat is found in the neighbourhoods of Kim, Mangrol, Tatithaiya, Palsana, Sachin, Unn,

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Katat Gam, Magdalla, and Udhana. Over time, Surat became a hub for the textile industry, attracting
residents from across India. This included cities of Rajasthan and Kolkata.

Major Brands

Many well‐known textile companies have their origins in Surat, including Vimal and Garden Textiles.
Other brands in Surat such as Prafful and Parag were particularly popular but were unable to
establish themselves as industry leaders. In recent times brands such as VishalSarees got
opportunity to become apparel partner of some of the bollywood blockbuster films, making them
quiet known among others. Apart from that no other player in the market has such distinctive brand
value

Major Markets

India and other Asian nations are Surat's primary textile markets. Surat provides around 90% of
India's polyester requirements. On the other hand, there is not a particularly substantial level of
demand for its goods on the worldwide market. The Middle East is the most important export
market for textile items manufactured in Surat. According to the opinions of industry professionals,
there is a significant need for further quality enhancement in order to satisfy the requirements of
the global market.

Strength & Challenges

The textile sector in Surat has grown in recent years due in large part to the city's ability to support
new ideas and technologies. The city is quite adaptable to the demands of its citizens. Industrialists
in this region are known for their initiative and business acumen.

Even Surat's textile sector has had its share of difficulties. In the trading world, most people stick to a
small number of regular customers. Many transactions are conducted on credit. The Federation of
Surat Textile Traders Association reports that in 2004–05, the sector lost Rs. 200 Crore due to
consumer fraud. Floods in 2006 also caused a significant loss for the business sector. An estimated
forty thousand textile stores in Surat have been destroyed in the floods, with daily losses estimated
at tens of millions of rupees. But the city has traditionally recovered rapidly from such losses.

Another challenge for the Surat textile industry is the increasing cost of manufacturing due to the
growing cost of electricity and labour. The majority of the workforce in this sector is comprised of
unskilled workers from states like Uttar Pradesh, Maharashtra, Orissa, and Bihar. Skilled workers are
in short supply in the business. The business also faces a serious shortage of workers from April to
June, when many workers return to their hometowns for the summer crop season. The government
has established institutions to teach the workers, however these institutes are poorly equipped.
Additionally, the reliance on replacementparts and equipment from international travel.

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nations like Japan and China is a significant barrier to Major Inputs (Raw Materials) & Outputs
(Finished Products) of Industry Yarn production, fabric weaving, fabric processing and embroidery
are the major activities in which majority of the units and constituents of Surat textile industry are
involved. Most factories in the area are vertically integrated, meaning that they buy grey fabric (raw
material) and then process it to dye it or print on it. On the basis of demand forecasts, local
merchants provide the raw material (grey fabric) and the design to processing plants, who then
prepare the cloth for dyeing and printing as specified by the merchants. Apart from raw materials,
other inputs required in the industry include manpower (in huge number), energy (electricity &
water), spare parts and machinery coming from countries like China & Japan, basic infrastructure
and finances.

Raw materials required for manufacturing or processing finished and semi‐finished Sarees, Dress
Materials, Denim, Grey Cloth which these units largely requireEach and every stage of textile
processing have final products which either becomes an input for further processing or ends up in
the hands of traders to be sold in the market

Following are the broad categories in which products after each stage of textile processing can be
categorised‐

• Cotton Yarn

• Fabric (Cotton or Synthetic) or Grey Fabric

• Dyed Fabric

• Printed Fabric

• Embroidered Fabric

• Semi – Finished Cloth (Lehenga/Saree/Dress Material/Denim etc)

• Finished Cloth (Lehenga/Saree/Dress Material/Denim etc)

Major Stakeholders of the Industry

A stakeholder is a person or group with a vested interest in an organisation or market or industry
who stands to gain or lose from current circumstances. Investors, workers, customers, and suppliers
are the four main groups that have vested interests in a normal business, while for an industry they
can be businesses, manpower employed in that industry, the government and society. Stakeholders
for textile industry of Surat are described below–

1. Businesses are among the foremost stakeholders. Businesses include Manufacturers of

textile products right from Fibre till it becomes Fashion or finished product, suppliers of raw
materials, traders, commission agents and retailers.

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2. Manpower employed in textile Industry is largest in terms of numbers. It can be further
classified into following –

• Skilled Employees – Qualified people working in textile businesses such as accountants,

machine operators, graphic designers, managers and sales personnel who are permanently working
for a business or establishment are largely classified as skilled employees.

• Semi‐Skilled Employees or Workers – People working in textile industry as labour or artisans

for a particular employer or establishment with little or no educational background are broadly
classified as Semi‐Skilled Employees.

• Daily Wage Worker – People working as daily wage walk‐in workers with different
businesses or establishments on need basis are broadly classified as Daily Wage Worker. They
perform their work similar as Semi‐Skilled workers or employees, just not permanently employed for
a particular employer.

• Freelancer Artisan or Self‐employed Group – People working individually or as a group on

project or contract basis for different manufacturers or businesses are broadly classified as
Freelance Artisan. Ladies doing hand or machine embroidery from home on contract basis and other
self‐help groups or self‐employed artisans taking up contract job works are the best examples.

• Porters – People involved in physically carrying huge textile luggage within the textile market
area of Surat are broadly classified as Porters. They also occasionally hire manual carts and pull them
physically in case the bundles are heavier and large in quantity.

• Transport Vehicle Drivers/Owners – Logistics and transportation are core to textile business.
Large and heavy weight textile luggage needs small pick‐up trucks, trucks and heavy vehicles for its
transportation between manufacturing units, warehouses, retailing units and outstation clients.
Manpower involved in any such transportation is broadly classified under this category.

3. The Society – Blooming businesses ultimately enhances standard of living in the society and
makes it economically and socially sound.

4. The Government – Blooming businesses increases tax revenue of the local government
bodies or Municipal Corporation which ultimately enhances developmental works in the region.

Hence, for this study the stakeholders are broadly divided into following categories for simplification
and for the sake of further analysis –

 Businesses – Manufacturers or Processor, Traders and Retailers

 Manpower – Skilled or Salaried Employees, Semi‐Skilled or Daily‐Wage Workers, Home/Job

Workers or Freelance Artisans, Porter and Transport Vehicle Drivers/Owners.

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Literature Review
This chapter presents appraisal of previous research studies and academic literature to have a
holistic view on the subject. It reviews research studies on the subject such as ‐ Effects of Covid‐19
on Textile Industry, Effects of Epidemics/Pandemics on Economic, Social & Political aspects of
countries, Effects of Covid‐19 on Demand & Supply and finally, Manpower & Migration plight in
India.

Knowledge has played a key role in the development of human civilisation and every piece of
research contributes to its richness. That is why it is of utmost importance to commence all
academic researches with a review of the existing literature and prior studies related to the topic to
identify gaps and make a progressive contribution.

There are studies available which focuses on how epidemics have adversely affected the society but
there are very few extensive researches done using primary data on economic impact or effects of
Covid‐19 pandemic; mainly because while this report is being written, the virus is still out there
infecting people in different geographies across the globe; and hence the researches might still be
going on. This chapter reviews the literature pertaining to following domain in order to understand
the topic in a comprehensive way –

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Effects of COVID‐19 Pandemic on Textile Industry

studied how adversely the textile sector has been affected in his study titled – ‘Impact of COVID‐19
on Indian Apparel & Textile Industry’. The study undertaken in India is based on information
collected through secondary sources and the author relies on years of his corporate experience to
present his opinions about the impact of pandemic on textile industry. This exploratory qualitative
research is presented in a case study approach. It initially described how textile industry was already
in the phase of overcoming downfall dueto implementation of GST when the pandemic hit.
Moreover, withdrawal of several government incentives on yarn had already decreased exports in
2019. Onset of pandemic made the situation worst. Textile industry is predominantly considered as
capital intensive and largely depends on organised borrowings from banks and financial institutions
for maintaining liquidity and cash flow. Figures presented in the study shows how badly the
pandemic has affected the textile eco system.

The study hoped for fruitful yields after announcement of post lockdown economic package by the
government of India such as allowance of 100% foreign direct investment (FDI) in textiles,
announcement of new textile parks and Technology Upgradation Scheme (TUFS).

‘Impact of COVID‐19 on Textile and Fashion Industry – Economic Perspective’ gathered secondary
data to present an economic perspective of how pandemic has affected Textile and fashion industry.
This qualitative study was conducted in Indian context and reported in form of case study. The
authors use their academic experience to conduct this research and express their opinion on the
subject. Kumar et al studied textile industry as one of the most affected sectors in India; mostly
because it employs maximum number of people after agriculture.

The study further enlists most affected areas of textile industry by the pandemic. First being Labour
force and Employment, the study says, the temporary closure of factory, mill or businesses and
lay‐offs have particularly affected the low wage worker of the industry. Secondly, hindrances in
Imports & Exports of Goods had its impact on the domestic supply chains which resulted in rise in
prices of spare parts and finished products.

The study finds that 60% of India’s export goes to the US and EU, resulting in cancellation of orders
because of travel and supply restrictions in initial days of pandemic. Thirdly, the industry struggled
with liquidity and profitability issues because of steep fall in demand, exports and restrictions. This
also aggravated into further crisis because of cash flow constraints. Supply chain disruption was the
fourth major affected area according to the study, due to impact on import & export and transport
blockades. Fifth, according to thestudy was consumer sentiment. Nationwide lockdowns and extent

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of the outbreak has impacted the consumer sentiments.

The gross total outstanding debt for textile industry of India was INR 23,58,125 million in financial
year 2020 and gross Non‐Performing Assets as a percentage of ross debt was declining since 2017, as
shown in Figure 4 & 5 above. The declining trajectory shows growing robustness of the industry to
serve its debt obligations but the outbreak of the pandemic is definitely going to affect this trend as
the market is projected to see a decline of 28‐03% as per the study as indicated by the exports data.

The study also predicts a steep recovery after the restrictions are lifted and economic activities get
back to normal. The study observes that the policies announced by the government to tackle the
adverse effects of pandemic such as ‐ INR 3000 collateral free loans to MSME and moratorium on
interest of bank loans along with other announcements has provided significant relief to businesses.

how the Indian fashion and cloth sector was affected during and post COVID‐ 19 times in his study
titled – ‘The Indian Fashion and Textile Sector in and Post COVID‐19 times’. The objectives of the
study were to – 1) identify consequences of COVID‐ 19 on Indian Fashion and Textile Sector, and 2)
to analyse how digitization can help the industry fight the crisis. The research was conducted in the
Indian context after the lockdown period when the virus is still infecting people and affecting the
industry, the data was collected through both primary and secondary sources. The data collected
through these primary and secondary sources was analysed using Value Chain Analysis which
identifies the problem and puts up stage wise solution for the problem. The study observes that the
industry has proved to be a profitable supporter and ‘socio‐economic booster’ for developing
countries in the past few decades.

The primary data was collected by conducting In‐ depth interviews of qualitative types of directors
and managing heads of large‐scale manufacturing houses (over 300 workers) and secondary data

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was gathered by performing methodical literature review across multiple databases in scientific and
technical genres. This was organised by Value Chain Analysis.

Interviews with the owners confirmed that businesses have no certainty. It had come to realisation
that even after the technological advances in the garment sector, it wasn't implemented in practice,
because either the staff wasn't trained or they preferred conventional styles of working and such
digital advancement meant investment in terms of human as well as capital resources. Because of
the huge gap in the digitization of the value chain, it has led to steep financial problems. The study
also enlists the changes to be made in the sector acclimatized according to the Indian needs –

• Their focus should be on strengthening the domestic sector as the foreign brands enthralled
the major sectors of market in big metropolises and the local brands have to move to lower
metropolises to sustain business.

• Digitization of business models will help as the manufacturing process could drop the time
interval, produce a synergistic setting of product with zero re‐work, lower manufacturing cost,
predictive maintenance will lead to lower periodical maintenance and minimize machine breakdown
time. This may augment the standard and give them a futuristic Scope.

• The companies should assess the employee’s strengths and growth edges and train them
within the skills required rather than laying them off as the Per ‐ day pay workers may change the
assiduity and it becomes delicate to seek professed labours after the crisis.

• Fiscal modelling is necessary as both the export and domestic sector had cash crunch. To
ameliorate this, the SMEs can financially integrate to strengthen the whole value chain and a set of
special programs regarding financial stabilities should be issued for the fashion and cloth companies
to give temporary support.

‘How COVID‐19 has shaped the Indian textile industry for the better’ is an exploratory qualitative
research based on data collected through secondary sources. The study focuses on brighter side and
finds opportunities for the businesses to grow in situations created out of pandemic. The study
observed a steep rise in sales of online textiles and apparel industry. Lockdown restricted the
movement of the people hence the demand for online apparels increased drastically. The article
predicts that the online retailers will be the next unicorns6. Online market has little to no
dependency on offline entities and middleman such as trader, wholesaler or intermediary which
don’t just removes their share in final price of the product but also gives freedom to the online seller
to formulate the competitive pricing to take advantage of market fluctuations; ultimately increasing
profit figures on their balance sheets.

It also describes on e‐retailers as game changer of the economy. The study, considering
governments’ interventions such as setting up of textile parks throughout the country and other
announcements made in post lockdown economic package, predicts promising opportunities for
e‐retailers in the country.

13
The study found opportunities in businesses manufacturing medical textiles and products like PPE
kits, masks and other medical supplies. Many textile companies in India like Arvind, Vardhman,
Welspunetc introduced a wide range of their own Anti‐viral products which prevents the virus to
penetrate this textile fabric which elevated the standard of their offerings to matching the western
standards.

the Issues and Challenges faced by the Indian Textile Sector for the Demand side and the supply
side, during and post pandemic. The research was conducted in Indian context employing secondary
data. This qualitative research analyses data with theoretical analysis approach. The major impact on
supply chain was due to social distancing guidelines, nationwide lockdown and restriction of
transport via international borders and rigid enforcements of these. This affected the domestic and
export commodity stock. Huge scale losses were faced in job sector and cuts were made in pay
system. On the demand side, change in consumer behaviour was because of consciousness towards
health safety and social distancing. The other major factor was restrictions made by the government
on non‐essential products and it included majority of textile sector.

Strategies that could be implemented to deal with the challenges: tax compliance rules and
deadlines can be relaxed; exporters can have some concessions against taxes or duties onexport
product, a detailed financial package which factors the labour as well as export sector.

The effects of Covid‐19 lockdown on textile industry of the country in his study entitled – ‘COVID‐19
Lockdown‐ Impact on Textile Industry’. The author incorporated an exploratory study in Indian
context using secondary sources, performed a theoretical analysis and reported it in form of case
study. This study enlists the factors which affected the textile industry without quantitative survey.
According to the research, Supply Chain Disturbance, Cash Crunch, Workers’ Migration and
government restrictions were the major problems creating hindrances for textile industry.

The study suggests businesses must diversify their source of procuring raw materials and supplies
such as spare parts of machinery (which is usually procured from China) in order to avoid such
situation in future where in international transport blockade abruptly stops everything. Also, the
article sees opportunity in China being seen suspiciously by the world, which implies that global
companies will now turn towards South East in Asia to find an alternative to China.

‘the Impact of Covid‐19 on Workers and Businesses at the Bottom of Global Garment Supply Chains’.
This quantitative research of exploratory nature was conducted in Bangladesh employing primary
data collected in March 2020 from 316 businesses out of around 2000 suppliers and 4000 factories.
The study describes the plight of factories as well as workers during the pandemic.

14
Effects on Production

• Shortages of raw material and supplies (spares) disrupted manufacturing throughout the
globe.

• Lockdowns in nations across the globe halted the productions and closed the factories
temporarily.

• Once the production resumed, it was still struggling with high prices and shortage of raw
material and labour till a considerable time.

• Order cancellation without compensatory payment aggravated the plight of manufactured

and workers as they were denied payment.

Effects on Trade

• Significant decrease in demand worldwide has affected the trade of textiles, clothing,
leather and footwear.

• The study emphasised that long term effect of the pandemic can possibly change the
composition of global textile industry.

Effects on Employment & Working Conditions

• Employment prospects have been affected drastically throughout the globe. 2.17 million
Workers in Bangladesh were either laid off or dismissed. 440,000 to 880,000 workers in Vietnam
were forced to work with reduced working hours, 10,000 people have lost their jobs in Myanmar
while closure of 200 factories in Cambodia has resulted in 5000 people losing their jobs.

The study also highlighted how the governments, constituents and subsidiaries of ILO worldwide is
responding to the crises –

Responses by Governments

• Governments throughout the globe are implementing economic policies specially to counter
ill effects of the pandemic. International Monetary Fund (IMF) has compiled economic responses of
192 economies of the world.

• The governments of Group of 20 (G20) nations resolved collectively to implement such

policies to secure income and jobs of the people, maintain financial stability, remove trade
disruptions, coordinate public health policies, assist poor nations and revive the growth.

15
• Governments of Myanmar, Sri Lanka, Bangladesh and Cambodia announced economic
stimulus package to boost growth.

Responses by employers

• The study observes that the employers worldwide are showing consideration, cooperation
and coordination by helping their workers financially and in kind till the point they can.

• Many companies are diversifying to start manufacturing health care textiles such as face
masks and PPE8 kits to keep the workers and operation engaged.

Responses by Workers

• Workers union such as ‐IndustriALL Global Union together with other global federations are
organising tripartite meetings with workers, employers and the government to identify, prevent and
mitigate threats to worker’s health, rights and welfare.

‘Impact of Coronavirus outbreak on textile sector’. This qualitative research was conducted in
India; employed secondary data, which was analysed and reported in form of Case study. Authors’
uses their academic experiences to express opinions based on secondary data analysis. According to
their study, Coronavirus crisis has adversely affected international trade and local markets. It has
affected the majority of India’s international trade markets causing order cancellation which then
led to inventory build‐up and expectation of slower realisation of export receivables led to higher
working capital requirements. Research highlights certain ways to tackle situations after Covid‐19,
few ways are as below:

• Pay Backing: This has been done to look at the unfavourable monetary aftermath of
Covid‐19 being one of the immediate methods taking the help of the government. Only UK has the
model to pay its workers up‐to 80% of their wages. It is observed that the organization has the
financial ability to keep up with the jobs of different divisions.

• GST Discount: This is the fastest method to make the maximum partners. This needs to
discount GST instalments to a certain extent or full for as long as a half year, covering almost the
entire range of industry partners, directly from the handloom weavers in the remote pieces of the
nation to the businesspeople and dealers in the now abandoned high boulevards. The segment
explicit premise will allow GST discount rates to be selected based on the HSN codes.

• Low GST rates: After this crisis, the industry will be in critical situation to overcome this govt.
must cut down the GST rates in all the items related to textile industry until industry comes regain its
normal condition. GST must be at lower rate: After this crisis, the industry will be in critical situation

16
to overcome this government must cut down the GST rates in all the items related to textile industry
until industry comes regain its normal condition.

• Creative Minds: The textile industry is gearing up and making variety of masks as people are
increasingly becoming safety conscious and are seen wearing face masks as they step out.

Indian Textile Journal – ITJ (2020) studied effected of pandemic with their study – ‘Corona virus
impact on textile industry’. The study is a part of the secretarial report of the journal tabled on June
2020 based on qualitative research from secondary data. It observed that the textile industry
predominantly employs migrant workers from different States and also a very large population came
for work from far off places using public transport. Under the Covid‐19 scenario, especially the
constant prevention measures were taken and awareness created by the Government to fight
against the Coronavirus pandemic, majority of the workers were not reporting for work and the
migrant workers had returned to their native places. As stated in research, according to the Clothing
Manufacturers’ Association of India (CMAI), that China’s Covid‐19 situation had also affected the
Indian textile and apparel industry. Research has also enlisted certain impactful situations
highlighted by CMAI for Indian Textile Industry –

• India’s yarn exports to China were curtailed: India exports 20‐25 million kg of cotton yarn
every month to China. Cotton yarn prices have fallen by 3 to 4 per cent in domestic market as
traders anticipate a lower demand from China due to the Covid‐19 situation there.

• Issues in imports of synthetic textiles and accessories: India imports $460 million worth of
synthetic yarn and $360 million worth of synthetic fabric from China every year. India also imports
over $140 million worth of other accessories like buttons, zippers, hangers, etc. India does not have
the domestic supply base to cater to such a huge demand of these raw materials.

• With the Covid‐19 pandemic, Chinese textile factories had stopped operations since the
Chinese New Year. Due the outbreak continued, Indian garment manufacturers had to look at other
alternatives, including local sourcing, which had increased the finished goods cost by 3 to 5 per cent.
In addition to this, identifying vendors in such a short time can take a toll on lead times, quality and
cost.

• Global demand of protective masks increased: China was importing large quantities of
medical protective gears including surgical masks and protective clothing from across the globe.
Sales of such products in other South East countries and even western nations have jumped
drastically. The supply of such products is not able to keep up with the demand due many reasons.

• Indian synthetic value chain not able to realise benefit of anti‐dumping duty removal on PTA:
Indian government provided a major relief to synthetic yarn manufacturers in India by abolishing the
2.5% anti‐dumping duty on Purified Tephthalic Acid (PTA) in order to strengthen the country’s
synthetic textiles industry. However, Hubei, and much of central China, the manufacturing hub of
feedstock, is at a virtual standstill. Hence, the imports of PTA from China were not an option at that
moment and manufacturers were still forced to rely on domestic supply to fulfil their demand.

17
• Apparel order diversion from China: During the month of January, buyers from Europe and
USA generally travel to China to negotiate with exporters for the upcoming seasons. However, due
to the covid‐19 scenario, most of the buyers are looking at alternative options.

Research had explored opportunities for textile industry and also highlighted certain situations faced
by textile industry, but there were factors which had crossed path and textile industry was not able
to grab the said opportunities.

Effects of Epidemics/Pandemics on Economic, Social

and Political Aspects
The study observed that non availability of data on economic impacts of these pandemics makes it
significant to study the ongoing outbreak in order to prepare the data and policy response cases
ready for future pandemics or even regional outbreaks. The article further focuses on
Macroeconomic Impact of Pandemics. It points out that the Covid‐19 pandemic could impact the
global economy in three ways –

• Disrupting Production

• Disrupting Supply Chain

• Financial Impact on firms

‘Socio Economic Impact of Covid‐19 outbreak in India’, presents a qualitative analysis of the crisis
and its effects on various sectors of Indian economy. The study is based on secondary data and has
summarized effects of Covid‐19 in India on three sectors – Primary, Secondary and Tertiary. Primary
sector is the one which is engaged in agricultural activities. Secondary is the one which turns
agricultural outputs into products or mainly value addition or industrial manufacturing while tertiary
refers to the service sector.

Primary Sector ‐ According to the study, non‐availability of Labour during harvest season, transport
blockade and low wholesale price (while the buyer pays more) are the major problems agriculture
sector has faced during the pandemic. The study recommended following measures to keep the
supply chain active –

18
• Agriculture sector has to be the part of essential services so as to spare it from lockdown
restrictions.

• Farm communities must secure themselves from infection by following the Covid‐19 norms
thoroughly.

• Government must ensure timely procurement of farm proceedings.

• Farmers and people employed in agriculture activities must be included in any economic
package announced by the government.

• Safe passage for import and export must be facilitated.

Medical industry in the country was highly affected as well. India imports 70% of pharmaceutical
ingredients (API) from China and exports 20% of global generic medicine supplies. Transport
blockade stopped manufacturing of all these pharmaceuticals units as consignments from China was
not arriving. Therefore, the study recommends the government first, to encourage domestic market
to produce API and second, must form an international union for of likeminded nations to facilitate
transportation and pool such key raw materials and medicines at the time of crises.

Secondary Sector ‐ IT was one of the sectors which got affected. 55% of electronics, according to the
study comes from China. Transport blockade hindered all the key supplies needed for smooth
operations of IT industry. Transportation blockade affected aviation and tourism so badly that
everything was standstill. Tourism dropped to zero. Industrial Manufacturing too saw a standstill
during the lockdown phase and since then it is recovering steadily but still faces the problems like
high prices of input and shortages of material and labour.

Tertiary Sector ‐ Education was significantly affected according to the study. Schools and
Universities were indefinitely closed in initial phases. Closure of schools highlighted issues like food
security, digital learning, childcare, internet and disability services etc.

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Social Impact

• Lockdownshaveintensifieddomesticviolencesuchasemotional,physicalandsexual abuse.
Vulnerable became more vulnerable.

• Onsetofpandemichasincreasedshorttermcarbondepositsintheenvironment because on
increased use of plastic in health services..

Impact on Economy ‐ The study notes that the Covid‐19 pandemic is continuously affecting people
and economies throughout the world and will have a lasting impact on international
trade.Theglobaleconomywhichwasexpectingagrowthof2.5% willnowshowadeclineof 0.9%. Study also
warned that this rate will further increase if restrictions stay for extended period and policy
response to the disease is not robust. According to the study, service sectors like retail, hospitality,
entertainment and transport are hugely affected after manufacturing which was stagnant due to
transportation blockade. It predicts dire situation for smaller economies relying on tourism.

Impact on Production ‐ The pandemic, according to the study has affected electronics and textile the
maximum. A bulk of electronic equipment used in digital devices, automobile industry etc is
manufactured and exported by China to all the countries. Outbreak of the disease in China which
was followed by strict restrictions stopped production all over the world. Companies like Apple,

20
Microsoft, Google, Tesla etc stopped production because of lack of raw materials coming out of
China. Consumer electronics saw a drop too. Production of TV & monitors was dropped by 9% and
smartphones by 10%.

Impact on Employment ‐ The study notes, workforce the globe was heavily affected. People lost
their jobs with companies reducing their employees or workers predominantly because they had no
funds to pay. Employees/workers were asked to go on unpaid leaves. People employed in the retail
outlets, mall and restaurants throughout the globe were suddenly jobless and little savings put them
in a sorry state of affairs. They study predicted that at least 20 million people throughout the globe
will either lose their jobs or become unemployed but the real figure might be 3 to 5 times the one
which is predicted.

Impact on Imports & Exports ‐ Because of worldwide closure of transportation and freight,
import‐exportswere atthe bay.Essentialsweremakingthe majority state in the total goods being
traded between nations which in turn horribly affected production and supply chains.
Pharmaceuticals and chemicals use raw materials from China which was not getting out of the
country because of local restrictions. Many countries started banning export of medicines fearing
high demand in local market while the local production was stagnant.

Macroeconomic Impact ‐ According to the study, the Covid‐19 created a synchronised negative
economic impact throughout the globe n a very quick manner. Almost all the economies worldwide
posted a negative growth rate and contraction in economies. Trades underwent short lived total
stagnation. The main factors behind this contraction, according to the study was –

• ValueChain Disruptions

• Transportblockade

• Reducedcrosscountryremittances

21
Estimating Economic Cost of the Pandemic ‐ The study acknowledges that putting an economic value
to human lives and loss of opportunities are next to impossible but for the sake of research it was
imperative to do so. For the said purpose, the study as shown in Table ‐ 4 below, has approximated
the output loss over the 10 years’ time frame that is,from 2020 to 2030. This was calculated in terms
of total projected GDP loss in coming years.
Thentheeconomicvalueofalltheeconomicstimuluspackageswasestimatedandfinallyan economic value
to loss of life and education opportunities was calculated at $ 5 million per
lifetakingintoaccountthedifference incost oflife giventheeconomicsizeofthecountries. The study
computed the following table for the quoted purpose and assumes that this very estimation is likely
to be a conservative lower bound.

22
Manpower & Migration Plight in India

For better pay‐scale and improved standard of living, workers had been migrating from rural areasto
urban centres for decades. As a result of the lockdown from March, they were migrating back to
their residence in rural locations because of the closure of their workplaces,plants and factories
andthis led to shortages in terms of income and food. They were migrating back in hopes of finding
jobs in MGNREGA, 2005 or farming.

Since the transport system had been suspended including the railway and road links, the only option
available was to walk back to their villages. Major issues faced by the walking migrants were being
arrested by law enforcements, exhaustion in the heat, road traffic accidents, health related
problems. Social platforms were filled with media showing their plight. Another major concern was
spreading of the COVID‐19 infection to rural places because of this migration.

Shramik special trains were started by the Government of India to facilitate the process of migration.
2050 trains carried over 3 million workers and many were still waiting to reach their home.

studied COVID‐19 lockdown policy of India and its effect on migrant workers and their human rights.
Traditionally migration is taken negatively in India andthose who migrate have difficulties in
accessing health care installations and other such livelihood needs. Migrants were already facing
cultural and language issues, and got more affected after the incantation of unforeseen lockdown by
the Indian Government under the Disaster Management Act, 2005.

Corporations and factories employed this community for their profitable advancementwhen needed,
but abandoned them when the crisis occurred. During the lockdown caused because of COVID ‐ 19,
the factories and corporations failed to provide basic humane treatment to migrant workers. The
pandemic of COVID‐19, revealed the scarcities in the Disaster Management Policy of the Indian
Government.Following points came in focus, on how the Government of India handled the COVID‐19
situation –

• TheIndianGovernmentwasnotpreparedtofacesuchacatastrophic pandemic.

• Covid‐ 19 Pandemic was improperly assessed and its severity was not foreseen on time,
neither by the world bodies like WHO nor by the Government of India.

23
• Pandemic Policy by the Indian Government has grave defects in it which needs to be
improved critically by drafting a better policy making it moreadaptive and humane for those being
affected.

• Unsuccessful enforcement of Lockdown during the Pandemic also highlighted the shallow
reach of the Indian Government.

The strategies should be better in terms of humanity and should be inclusive of all factors especially
that of migrants. Before any such policies are legalised, the society must be made aware about this
as it could impact the life of millions.

highlighted plight of migration in the country in their study titled ‐ Challenges of reverse migration in
India: a comparative study of internal and international
migrantworkersinthepost‐COVIDeconomy.UsingthedataofIndianCensus(2011)as

base, the research estimated the number of individuals migrated within the state and between
states, to be around 450 million people. States like Uttar Pradesh (UP), Bihar, Madhya Pradesh (MP),
and Rajasthan are among the major origin states, while states Delhi, Kerala, Maharashtra, Gujarat,
and Tamil Nadu are among the important destination states for these migrant workers. While
looking into international migration India has the largest diasporas (18 million) with the number of
migrant workers in Gulf countries alone accounting for 8.4 million.

Research was carried out by interviews of migrant workers and through those interviews researcher
had enlisted certain outcomes. Research had not offered representativesamples; rather it aimed to
provide narratives of the experiences and challenges faced by the migrants during their reverse
migration, repatriation and reintegration to states or countries they were working. Research used
method of narrative analysis to provide a qualitative understanding of the subjective perceptions
and experiences of the reverse migrants during the Covid‐19 pandemic which may not be
adequately captured by statistics as per researcher.

Researcher’s findings arranged thematically to highlight the various challenges faced during the
reverse migration, repatriation and reintegration of migrant worker. Following are the points which
research highlighted:

• Economic challenges during reverse migration:Due to the COVID‐19‐induced lockdown, the

working class, especially the low‐income migrant workers, have been the worst affected. There were
workers who had faced non‐payment of wagesduring the lockdown period. They were forced to

24
return to their villages due to unpaid wages, no place to live with basic facilities such as electricity
and water provided by the contractor/employer and no immediate governmental protection.

• Social challenges during reverse migration: Migrant workers interviewed reported instances
of discrimination against them and being viewed as the spreaders of the virus in the destination
city/state, during their journey back to home state/city, in quarantine facilities and in their villages.

• Workers’ mobility challenges: The central government was reluctant to rescue the stranded
migrants both within and abroad, despite appeals from different stakeholders such as state
governments, civil society and trade unions.

• Process of economic reintegration: There are several measures taken by the central
government to reintegrate the migrant workers in the post‐COVID‐19 economy.

Researchhighlightedtheinvoluntaryandforcednatureofmigrationbacktohometowndue to the sudden

lockdown, lack of preparedness and planning among the government, the irresponsible behaviour of
the employers and social hostility against the migrants. Lack of migrant data and registration in
welfare schemes excluded most of them from the relief package benefits.

studied effectiveness of government policies in controlling COVID‐19 in India. According to the study,
the lockdown in India was started as a 14‐hour ‘voluntary public curfew’ in March 2020. This public
curfew was a self‐quarantine request to the citizens by the prime minister of India. Research has
been done by collecting data of 35 states of India on Covid‐19 cases and their bifurcation into
different categories from the various sources. Collected data was analysed by different statistical
tool and tests.

Research had concluded that there was different ranking of states based on the threat of Covid‐19
indicates that states such as Maharashtra, Gujarat, Delhi, Tamil Nadu, Rajasthan, Madhya Pradesh,
Uttar Pradesh, Andhra Pradesh, Telangana, Punjab, and West Bengal facea more significant threat of
Covid‐19 and at the end research suggest that the governments of these states should design
pandemic control policies with a greater focus on urban areas. Research has suggested better
control policies to government with categorical bifurcation but as per the objective to measure
effectiveness government policies, research fails to summarise the same. This led to gap in research
conclusion and objective which gives us room to extend research process and conduct research on
said matter for measuring effectiveness of government policies and not just results of spread of
Covid‐19 cases.

OverlappingBetweenCausesandEffects

25
During the thorough process of reviewing literature, there was a simple yet complicated relation and
overlapping between causes and effects between nations. It was found that ‘effects’ on businesses
or economy in Country A, was in fact a ‘cause’ for Country B.

To elaborate, let us take an example. Transport Restrictions (which is a Cause) in China was resulting
into Reduced Productions (an Effect) of pharmaceutical ingredients. This Reduced
ProductionofpharmaceuticalingredientsinChinawascreatingaShortageofSupply(a Cause) incountries
like India which depends on Chinese ingredients to make generic medicines, which in turn was
Reducing Production (an Effect) of generic medicines in India and Generating Unemployment (an
Effect) in factories.

26
Research
Methodology

This chapter provides an insight into the research methodology used for this research. Initially, it
describes the rationale of conducting this study and frames problem statement. It then describes
entire research process which includes defining research problem, review of literature, making a
research design, collection of data, analysis of data and finally, reporting.

Rationale of Study
Despite all efforts made by government, it was evident that the economy is under stress and it
seemed inevitable to prevent economic slowdown generated out of pandemic. Hundreds of
thousands of people (majorly labour and workmen) have migrated from their place of work to their
place of domicile after announcement of first lockdown by the government which further worsened
the worst situation at industrial hubs. Major industrial states like Gujarat and Maharashtra which
attracts workers and labour from states like Uttar Pradesh, Bihar and Orissa are facing huge shortage
of manpower after migration of these workers to their native states (Khan, 2021). Also, disruptions
in supply chain have severely affected the industries. Economic consequences of pandemic are
endless and hence it is very important to study industry specific impacts and its extent.

27
According to India Today (Mahurkar, 2020), “the national lockdown, beginning March 25th 2020,
had put Surat’s 700,000 looms and 350 dye manufacturing units in a limbo. The looms and other
related textile activities, which employ some 1.5 million people, ceased to operate, suffering huge
losses. With an annual turnover of Rs 96,000 Crore, as per industry estimates, Surat’s textile trade,
from yarn to finished product, is staring at losses to the tune of Rs 24,000 Crore in three months”.
The Indian Express (Kamaal, 2020) writes workers are unwilling to come back to Surat as they are
happy with what they earn from the MNREGA work which they get in their home state. Textile,
Diamond and Pharmaceutical are among major industries in Surat which are facing different issues
altogether. This study focuses on effects of pandemic on Textile Industry in Surat. While reviewing all
the relevant literature existing related to the said topic it was concluded that –

 Very few studies were found which involved primary data, focusing on effects of COVID‐ 19
pandemic on textile industry anywhere in India.

 No significant studies were found focusing on effects of COVID‐19 pandemic on Surat Region
or District.

 Very few studies were found enlisting all government interventions enforced to cope up
consequences of COVID‐19 pandemic on textile industry.

 No significant studies were found evaluating relevance of enforced government

interventions to deal with consequences of COVID‐19 pandemic on textile industry.

In order to solve the problem, it is important to have a thorough and elaborated understanding of
what actually the problem is. By studying the effects of pandemic on Textile Industry in Surat, it will
give an insight to the authorities in taking appropriate decision and tackling future pandemics with
efficiency and in timely manner. This research will have following significance –

 The study helps in identifying region specific (Surat) and Industry Specific (Textiles) effects of
COVID‐19 pandemic.

 The study helps in identifying various factors adversely effecting textile industry of Surat
during COVID‐19 pandemic.

 The study helps in identifying consequences of COVID‐19 pandemic on textile industry of

Surat.

 The study helps in enlisting the government interventions already enforced to cope with
COVID‐19 pandemic on textile industry.

28
 The research helps in studying relevance of governmental interventions enforced during
COVID‐19 pandemic with respect to textile industry of Surat.

 The study helps the authorities to identify gaps in measures taken and measures required to
nullify adverse effects of COVID‐19 pandemic.

 The study helps the authorities and administration to be prepared with measures required
to be taken at the time of future pandemics.

Statement of Problem
“The national lockdown, beginning March 25th 2020, had put Surat’s textile trade, from yarn to
finished product consisting 700,000 looms and 350 dye manufacturing units in a limbo. The looms
and other textile activities, which employ some 1.5 million people with an annual turnover of Rs
96,000 Crore, ceased to operate and subsequently suffering huge losses around ₹ 24,000 Crore in
three months” The economic slowdown as described in Chapter 1 hint that textile industry in Surat is
seeing tough days and requires comprehensive research to study all factors effecting its growth,
governmental interventions and its implications.

Introduction to Research Methodology

Academic study undertaken with aim to gain new paradigms of knowledge through systemised
efforts is called research. To elaborate further, research is a sy thematic investigation or experiment
aimed at gathering, recording, analysing and interpreting facts or information to draw meaningful
conclusion to its objectives or research questions. Research aims to explore answers to the
questions through analysis of accepted theories or laws in light of new facts, or practical application
of such new or revised theories or laws following a scientific investigation or process.

Research Process
The Research Process involves multiple scientific steps which are interlinked with each

other. However, these steps are not completely linear as the research is an iterative process (earlier
phases of the research influence the later ones, while later ones can influence the earlier phases).
The process of research starts with identifying the research problem and finalising research
objectives, before advancing towards the next step sequentially.

Research process constitutes a series of systematic procedures necessary for a researcher to

effectively carry out research. The figure, following, describes a typical research process. It indicates
how research consists of a number of closely related activities ‐

29
1. Define Research Problem

Defining objectives is the foremost step towards initiating research. A research problem is a
statement about an area of concern, a condition to be improved, a difficulty to be eliminated, or a
troubling question that exists in scholarly literature, in theory, or in practice that points to the need
for meaningful understanding and deliberate investigation. In some social science disciplines, the
research problem is typically posed in the form of a question.

A research problem does not state how to do something, offer a vague or broad proposition, or
present a value question. For this particular study we have already identified the problem and
formal statement of problem is framed –

“The national lockdown, beginning March 25th 2020, had put Surat’s textile trade, from yarn to
finished product consisting 700,000 looms and 350 dye manufacturing units in a limbo. The looms
and other textile activities, which employ some 1.5 million people with an annual turnover of Rs
96,000 Crore, ceased to operate and subsequently suffering huge losses around ₹ 24,000 Crore in
three months”

Complexity of the problem hints that textile industry in Surat is seeing tough days and requires
comprehensive research to study all factors effecting its growth, governmental interventions and its
implications; which further paves the way for defining research objectives of the study.

30
Objectives of Study
Research objectives outline the specific steps to be undertaken to achieve the research aim.
Objectives define the what, why, who, when and how questions. Research objectives must be
measurable, achievable and realistic in nature so as to complete the study in a time bound manner.

This particular study is aimed to study impact of COVID‐19 Pandemic on textile industry of Surat.
‘Impact’ here in this study will be analysed by studying factors affecting the businesses & manpower,
and its consequences on the textile industry hence the objectives are broadly classified into
following categories ‐

Primary Objective

 To study impact of COVID‐19 Pandemic on Textile Industry of Surat

Secondary Objectives

 To identify COVID‐19 pandemic‐generated factors effecting textile industry of Surat.

 To identify consequences of COVID‐19 pandemic on textile industry of Surat.

 To enlist governmental interventions already enforced to tackle adverse effects of COVID‐19

pandemic.

 To study relevance of enforced governmental interventions to tackle adverse effects of

COVID‐19 pandemic.

Review of Literature
Once the research problem is identified and defined, the next step is to review the existing
researches. Knowledge is supreme; every piece of research will contribute another piece to it. That is
why it is important to commence all research with a review of the existing literature or research
related to the topic. The researcher needs to learn more about the topic under investigation. This
step provides foundational knowledge about the problem area. The review of literature also
educates the researcher about what studies have been conducted in the past, how these studies
were conducted, and the conclusions in the problem area. Chapter two of this report examines
thoroughly about the previous researches and studies undertaken.

31
Plan a Research Design

After defining the problem, framing of objectives, and review of existing literature, a

research design is framed in order to seek answe s to the objectives framed by collecting data from
various sources. A research design is a blueprint or a plan specifying detail of nature, procedure and
method to be used for collecting and analysing the data as shown in the figure below ‐

Research is classified based on research purposes, depth of scope and type of data used. Each of
these research types has distinctive properties and uses unique data collection methods. On the
basis of nature of the research, it can be broadly divided into following categories –

Classification on the basis of Purpose ‐

Theoretical Research aims to generate knowledge irrespective of its practical application. Data
collection for this type of research is aimed towards formulation of new concepts or theories for
better understanding of a particular field.

Applied Research builds up further on existing theories and concepts to generate practical scientific
knowledge. It is commonly used in medical, engineering and computer sciences.

32
Classification on the basis of Depth of Scope ‐
Exploratory Research is primarily intended to find out certain basic principles or to answer set of
basic questions. It is undertaken to handle new problem areas that haven’t been explored before so
that a ‘frame of reference’ or hypothesis can be generated so that an in‐ depth study can be
developed. Maslow’s Hierarchy of Need Theory in Motivation is the prime example. It provides
researcher with a deeper understanding of a research problem, its context before further research
can be carried out.

Descriptive Research is usually a fact‐finding approach aimed at expansion of current knowledge. It

accurately describes the characteristic of a population, situation or phenomenon without necessarily
investigating the causes that produce it. It is concerned with gaining a deeper understanding of
‘what’ the phenomenon is rather than ‘why’ or ‘how’ it takes place.

Explanatory or Casual Research is conducted to understand the impact of specific changes in existing
standard procedures. It studies cause and effects.

Correlational Research, as name implies, aims to identify the relationship between two or more
variables. It studies how change in one variable impacts the other variable under study.

Classification on the basis of Type of Data used

Qualitative Research is the one used in social sciences to collect, interpret and compare information
which can’t be recorded numerically in quantitative terms. Data is collected through observation,
interviews, surveys and records. Complex subjects with highly subjective variables need to be
understood in a comprehensive way and hence surveys might not alone serve the purpose therefore
observations and interviews are conducted to study the subject.

Quantitative Research on other hand examines a phenomenon under study by collecting

quantitative data using mathematical, statistical and computer aided tools to numerically measure
them.

Here in this study, we are trying to find out effects of COVID‐19 Pandemic specifically on Textile
industry of Surat. Pandemic created a unique situation in this globalised world having little
precedence. Exploratory research examines questions which have not been studied in depth before
in order to generate a ‘frame of reference’ or hypothesis so that further in‐ depth studies can be
developed in future. Therefore, this research is exploratory research which intends to lay the
foundation for future analysis. Moreover, looking at complexity of scenario, unprecedented events
and interdependence of variables, both quantitative and qualitative data will be collected so as to
reach a comprehensive and inclusive conclusion.

33
Collect the Data
A systematic process of gathering data through observations or measurements aimed at answering
research questions, testing of hypothesis and to evaluate outcomes of a study is called data
collection. Definitive and accurate data is an essence of research. It is of utmost importance to
maintain integrity of research.

Types or Nature of Data

Data to be collected is broadly divided into two categories; Qualitative and Quantitative‐

• Quantitative Data ‐ Numerically expressed data in terms of numbers, statistically analysed to

provide meaningful results are called quantitative data. Heights, weights or ages of students
collected from a class can be classified as quantitative data. If the researcher obtains mean of set of
the measurements collected, meaningful information can be drawn regarding the average value for
each characteristic of the students.

• Qualitative Data ‐ qualitative data is the one which is used for description of group of
individuals, objects or situation without numerical measurement. Student’s attitude towards
mathematics, attitude towards half yearly exams and friendliness of students to teachers are
examples of qualitative data. Information collected in this regard is qualitative in nature and cannot
be easily summarized using statistics.

This particular study is trying to find out effects of COVID‐19 Pandemic on textile industry of Surat.
Therefore, both Quantitative and Qualitative data was collected from the stakeholders of the textile
industry of Surat. Major stakeholders described below were already identified and explained in
chapter 1 –

 Businesses – Manufacturers or Processor, Traders and Retailers

 Manpower – Skilled or Salaried Employees, Semi‐Skilled or Daily‐Wage Workers, Home/Job

Workers or Freelance Artisans, Porter and Transport Vehicle Drivers/Owners.

Sources of Data

34
The decision of choosing appropriate source of data is crucial in order to make the data and its
analysis reliable, dependable and scientific. Three questions are needed to be answered before
arriving at the decision on data collection source and methods –

 What are the objectives of the research?

 What kind of data is intended to be gathered?

 What methods and techniques will be used to collect and analyse the data?

• Primary Source of Data

Primary Source of Data is the authentic data gathered by researchers on a first‐hand basis suiting the
purpose of the research. There is originality in character in the data

collected through primary sources. The results generated out of primary data are extremely precise
given that the proper science‐based methodology is followed by the researcher.

Primary Data has many advantages over secondary data; 1) the data is collected keeping in mind the
particular research question, so no tailoring needs to be done for using the data, 2) It is reliable
source of information as researchers have full control over the quality and method of data
collection, 3) Resources are used only in gathering the essential data, and 4) primary data is
exclusively available with the researcher so not everyone has access to it.

There are few disadvantages to primary data as well. Data collection with primary sources involves a
lot of effort and it is expensive in nature. Moreover, process of collecting primary data is a
time‐consuming affair.

• Secondary Source of Data

Secondary data is the gathered by somebody other than the primary researcher suiting the
objectives of primary research. Secondary data, though being affordable and easily available with
fewer efforts as compared to the primary data, it does raise concerns about its accuracy, suitability
and reliability. Secondary Data majorly comprises of Quantitative data. Secondary data can be
gathered through published papers of professionals, reports, organisations of research, government
publications and research journals among few.

35
The foremost advantage of using secondary data is its time‐friendly nature. Secondary data can be
acquired quickly as compared to primary data. It is readily available through blogs, websites of data
aggregation, publications etc. Secondary data comes with several disadvantages – 1) Data acquired
from a single source might not be complete to suit the research objective. Researcher might have to
gather additional data from multiple sources to enrich it, 2) accuracy of the data is always a concern
for researchers, 3) unreliable secondary data affects the dependability and findings of the research.

.Despite the benefits it offers, secondary data has its shortcomings. One limitation is that secondary
data may not be complete. For it to meet the research needs, researcher may need to enrich it with
data from other sources. A second shortcoming is that researcher cannot verify the accuracy of
secondary data, or the data may be outdated. A third challenge the researcher face when using
secondary data is that documentation may be incomplete or missing. Therefore, researcher may not
be aware of any problems that happened in data collection which would otherwise influence its
interpretation.

Situations pertaining to COVID‐19 Pandemic are unprecedented and hence there was hardly any
data available for this particular region and for this industry; therefore, secondary data was not
expected. For this study, primary data of both quantitative and qualitative nature was collected.
Quantitative data was collected through disguised questionnaires on the ground by making
respondents answer the questionnaire. Qualitative data was collected through questionnaire and by
asking questions as a part of personal interview.

However, secondary data and information was required to review the literature, design conceptual
framework, get clarity regarding research concepts, and to enlist government policies or
intervention during Covid‐19 pandemic. One of the research objectives of this study is to enlist all
interventions enforced by the government to tackle ill effects of Covid‐19 pandemic. Therefore,
secondary data from various government and private sources was collected for this purpose.

 Articles & Journals were used for reviewing literature and to develop a general
understanding about the subject.

 Several Internet Sources were used for fetching secondary data from government and other
websites mentioned in ‘References’ section

Sampling

Sampling is a process of selecting a unit from population of people or objects for measurement as a
part of a scientific research process. A sample is drawn with an objective to represent the entire
population so that findings can be generalised to the whole population.

36
Sampling is done because census is not always possible considering, first, large size of population,
the time factor and the non‐accessibility of certain components of population. There are two broad
ways in which sampling is divided –

1) Probabilistic Sampling Methods ‐

A technique of sampling in which a researcher draws a sample from the population, where in, every
unit of population has equal chance of being selected is known as probabilistic sampling. For this
purpose, a random sample is drawn from the population.

Probability sampling aides the researcher to create a sample which is a true representation of the
population as every unit of population gets equal chance of being selected. Simple random sampling,
Stratified Sampling, Cluster Sampling & Systematic random Sampling are the major techniques of
probabilistic sampling ‐

• Simple Random Sampling ‐ The technique of selecting a sample in which every unit of the
population have equal chance of being selected is called simple random sampling. Simple random
sample is free from sampling bias. Simple random sampling is usually done
when the population is large with homogeneous characteristics.

• Systematic Random Sampling ‐ the technique of selecting sample from the population at a
regular pre‐determined interval is called systematic random sampling. There exists an equal
opportunity to every unit of population for being selected. For example, researcher selecting every
10th unit from the population of 100.

• Stratified Sampling ‐ In stratified sampling, the population is divided into smaller groups
called strata, on the basis of age, gender or any other characteristic and then a sample is drawn from
each of these stratums so that this chosen sample can be a representative of entire population.

• Cluster Sampling ‐ A technique of sampling in which few clusters are made out of a large
population and then every cluster is considered for a census or all units in the clusters are
considered as samples.

2) Non‐probability Sampling Methods

A technique of selecting samples on the basis of researcher’s subjective judgement and not on the
basis of random selection is known as non‐probability sampling. Unlike probability sampling, here all
units of population do not get equal chances of being selected. While each unit of the population

37
have a definite chance of being selected, it is considered as a quick, easy and comparatively
economic technique of obtaining data through sampling. Non‐probability sampling is performed
when it is not possible to draw random samples from the populations because of limitations like
time and cost. Convenience Sampling, Quota Sampling, Judgemental Sampling and Snowball
Sampling are the methods of non‐ probabilistic sampling ‐

• Convenience Sampling ‐ A technique of non‐probability sampling in which researcher selects

samples from the population merely on the basis of

convenience to save cost and time is called convenience sampling. It is also known as haphazard
sampling. Convenience sampling is done with an assumption that all units of population are alike.

• Quota Sampling ‐ Quota sampling is a technique similar to Stratified probabilistic sampling.

In quota sampling the population is divided into strata or groups and samples are drawn from each
stratum but the only difference is, here all the units in a sample does not have equal opportunity of
getting selected like stratified sampling. In quota sampling, researcher draws sample within strata on
the basis of convenience and not randomly.

• Judgmental or Purposive Sampling ‐ Judgemental sampling is a non‐probabilistic sampling

technique in which a researcher uses past experiences, expertise and knowledge for the purpose of
drawing samples from the population. This judgement of the researchers is can be based on
composition of the population or its behaviour. Judgement sampling, also as known as purposive
sampling, have some limitations and is prone to biases based on personal preconception and that is
why it is not considered as a scientific method of drawing samples from the population.

• Snowball Sampling ‐ Snowball sampling is a non‐probabilistic sampling technique in which

samples are drawn on referral basis when the size of sample is small and difficult to locate. The
researcher finds the first unit and approaches the other on the basis of referral made by the first.
This way the sample grows like a snowball running down a hill and takes up whatever coming on its
way.

For this particular study, which involves different types of sub‐types of stakeholders to be studied,
there were chances that each sub type is differently affected by the COVID‐

19 pandemic. Hence Probabilistic Stratified sampling was considered best to be employed for
collection of both quantitative data as well as qualitative data.

Sampling Process

38
1. Identify the Target Population ‐ Target population refers to the group of individuals or
objects to which researchers are interested in generalizing their findings. It is the group of
individuals or objects from which the sample might be taken. A well ‐ defined population reduces
the probability of including the participants who all are not suitable for the research objective.

For this particular research Businesses and Manpower employed in the industry worldwide is
considered as Target Population.

Target Population for this Study ‐

 Businesses of Textile Industry

 Manpower employed in Textile Industry

2. Select a Sampling Frame ‐ Sampling frame is the group of individuals or objects from which
researcher will draw his/her sample. It is the list of all units in a study population from which the
sample is taken.

For this study, Businesses and Manpower employed in the textile industry of Surat City will be
considered as Sampling Frame.

Sampling Frame for this Study ‐

 Businesses of Textile Industry in Surat City

 Manpower employed in Textile Industry in Surat City

3. Specify the Sampling Technique ‐ Sampling can be done through probability (random
selection) or non‐probability (non‐random) technique as explained above.

4. Determine the Sample Size ‐The sample size is simply the number of units in the sample.
Sample size determination depends on many factors such as time, cost and facility. In general, larger
samples are better if they make study more accurate, but they also require more resources.

39
Here in this study the decision to select appropriate sample size was complex. Surat houses world’s
largest textile market. It has more than 7,00,000 looms, 500 dyeing and printing mills, around 1500
other value addition or processing units, more than 50,000 traders/ retailers and thousands of
manpower employed directly or indirectly. Hence all these stakeholders which were to be surveyed
were broadly divided into following categories as explained in Chapter 1 –

 Businesses – Manufacturers or Processor, Traders and Retailers

 Manpower – Skilled Employees, Semi‐Skilled Employees/Workers, Daily‐Wage Workers or

Artisans, Freelance Artisan, Porter and Transport Vehicle Drivers/Owners.

Sample size has been proportionately low to its sampling frame considering the outcome of pilot
survey and on the basis of below mentioned assumptions.

Assumptions made to determine sample size –

 During pilot survey it was discovered that stakeholders as defined in Chapter‐1 were
similarly affected within their group or strata; meaning the pandemic has not very differently
affected any particular sub type of textile businesses in Surat. Manufacturers in the industry were as
badly affected as the traders or retailers were.

 For example, ‘Shortage of Demand’ for Manufacturers was found to be homogenously

applicable to all others among the businesses, that is, Traders and Retailers; or ‘Shortage of Work’
was an equally prevalent challenge for all textile whether they are Skilled Employees or Porters.

40
Analysis of Impact

The qualitative and quantitative data gathered through questionnaires, interviews and secondary
sources was analysed using statistical techniques. This chapter identifies major factors affecting the
industry, their consequences on business and manpower, enlists governmental interventions post
lockdown and analyses effectiveness of these interventions on businesses and manpower.

The Case Study of Textile Industry of Surat during

COVID‐19 Pandemic

COVID‐19 or Coronavirus Disease is an airborne disease which has till date affected millions of
people throughout the globe. Right after being detected first in December 2019 in Wuhan, Hubei,
China it became wide spread and was declared as Pandemic by World Health Organization (WHO) on
30th January, 2020. Since then, the virus has taken over the entire globe sparing no geography.
Economies slowed down and businesses struggled because of sudden lockdown announcement by
the governments worldwide.

The global and Indian economies have taken a severe hit as a consequence of the COVID‐19
pandemic and the subsequent multi‐phased lockdown11 or travel restrictions enforced by
governments throughout the world to stem the spread of the virus (Khurana 2022). Government of

41
India announced a nationwide Lockdown from 25th March 2020. India's GDP was already on the
decline before the epidemic hit because of sluggish consumption, lethargic investments, and issues
with Goods and Services Tax (GST). Therefore, the onset of the Covid‐19 pandemic and related
restrictions made it even worse (Kumar et al, 2020).

Textile industry was no exception. In general, the industry consists of activities starting primarily
from cultivation of natural fibre (that is cotton, hemp, jute, flax or silk) and ends with delivery of
finished product, that is, fabric or garment to the end user. Apart from products made out of natural
fibres, synthetic products in textile industry are made out of synthetic fibres made using products of
chemical industry such as polymers.

The Indian Textile Industry Comes in Second Place After Agriculture (Dhanabhakyam, 2007). The
textile industry is one of India's oldest businesses; it plays a significant role in the country's overall
economy; and it gives meaningful job opportunities to millions of individuals. It is the second biggest
job generator after agriculture, accounting for 14 percent of the overall industrial output, making
almost 3 percent of the gross domestic product (GDP), and contributing roughly 30 percent of the
total exports. It is estimated that the export of textiles and garments accounts for around 27 percent
of the total foreign currency revenues (Dhanabhakyam, 2007) therefore it became imperative to
study effects of COVID‐19 Pandemic on textile industry.

Surat, the textile capital of Gujarat, has been named the world's fastest‐growing city by Oxford
Economics (2019). Surat is home to one of the most and oldest pervasive textile industries in the
world. Most of the city's migrant labour force is connected to the textile trade and manufacturing.
Yarn manufacturing, weaving, fabric processing, and embroider ‘Lockdown’ surfaced as a popular
term after the onset of Covid‐19 outbreak, generally used to sum up travel restrictions imposed by
the governments worldwide which locked up people indoors. are the mainstays of Surat's textile
sector. The city of Surat, India, is well renowned as a major hub for the sale of synthetic goods. Its
primary activities include of manufacturing and retailing synthetic textiles. In India, Surat is
responsible for producing over 65% of all manufactured fabrics and 90% of all polyester Synthetic
sarees and other dress fabrics have made Surat famous, and the city and surrounding area are home
to over 400 manufacturing facilities, 1 Lakh embroidery houses and around 50,000 traders. Nearly 30
million metres of raw fabric and 25 million metres of processed fabric are produced in Surat daily.

The sudden lockdown announced by the government put everyone in a limbo as no business was
prepared enough to deal with the disrupted supply chains (Khurana 2022). The magnitude in which
the pandemic was affecting businesses was magnanimous and totally unprecedented which made it
imperative to study in depth the factors affecting textile business, its consequences, effectiveness of
government interventions and plight of manpower employed in the industry.

The city of Surat is home to millions of migrants who have travelled from different states throughout
the country in search of livelihood. Pritam Sahu is one such textile labour working for Anjani Textiles,
a yarn manufacturing firm in Surat. He hails from Bhubaneswar, Odisha. He migrated to Surat in the
year 2008 and working here since then. He has completed his matriculation and has 4 dependents in

42
his family. All of them stay together with him here in Surat. He started working for his current
employer in 2012 and stays in a one‐bedroom house in Surat. He earns around INR 15,000 to INR
20,000 depending on overtime he does at work in any particular month depending upon demand.
Rent of the house he was staying at was INR 4000/month and his monthly living expenditure was
around INR 8000 – 10,000, leaving him with a little to no savings at all.

When lockdown was announced initially and operations were all shut, his employer, looking at the
vintage of his association with the firm, kept him on paid leave for two months. But after the
employer himself started facing liquidity crunches, he was stripped off the rolls of the company.
Though, because of the pressure from local administration, local association

of textile businesses and because of the appeal of central government, his employer offered his
family a stay in company premises and meals for both the times. This helped Pritam in sustaining his
stay in Surat for couple of more months before he realized that this situation is not getting back to
normal anytime soon and in order to earn some living, he will have to look for possible ways. Two
months later he decided to move back to his hometown to help his father and family in farming and
earn something for his family. His employer helped him with train tickets and sent the entire family
back to their hometown in Bhubaneswar.

After eight months when demand started rising his employer called him back and offered work but
this time salary was not at the par to pre pandemic state. He returned back to Surat and started
working for his old employer with reduced salary and reduced working hours which continued till a
year and half. Meanwhile, he was also benefitted by Direct Benefit Transfer (DBT) in his Jan Dhan
Account without which he says his life would have turned miserable. Pratham expects more such
DBTs during such lockdowns to workers like him to support livelihood during period of no
employment. After a year when demand was back to pre‐pandemic state, his salary was increased
and he shifted to a rented accommodation.

It emerged that lack of work, initially because of the lockdown and later because of the shortage of
demand, was the main reason behind the Pritam not getting work. Reverse migration emerged out
as a ‘consequence’ of pandemic which corroborated with the findings of the study conducted by
Gehi (2021).

The situation of Pritam clearly indicates that DBTs provided by the government are surely helping
the Economically Weaker Section (EWS) of the society. Though, this cannot be a long‐term solution
for the problems of workers and labours like Pritam. Government, in a populous country like India
have limited resources and varied priorities. Distributing DBTs can heavily affect the treasury and
disturb the infrastructural development of the country. As a solution, government must do

43
something to make the EWS self‐sustainable. Start‐up schemes and policies like PM Swanidhi12 etc
are helping the EWS develop entrepreneurial

12PM Swanidhi Yojana is a scheme of central government which provides working capital loan to
street vendors, hawkers, thelewalas and rehriwalas, up to INR 10,000.

spirit but there needs to be some government scheme promoting monthly household savings with
lucrative interest rates or returns. This will help the families to survive such pandemics in future
through their savings and not through DBTs.

Ashaben Maheta is an Artisan working from home. She works as a freelancer embroidery worker
and take up job works from different retailers. She stitches Lace, Jari or Embroidery Pattis to Sarees
and Bridal Lehengas as a part of value addition process taken up by middleman and retailers. Her
husband works for a diamond processing firm and they combined have four dependents.

Ashaben did not get any job work for six months after the onset of COVID‐19 pandemic. As the
couple had some savings and a house of their own, they didn’t to go to their hometown for their
living or basic needs like Pritam and Rameshbhai. Though, their savings were significantly affected
because both Ashaben and her husband were having no work for period of six months after the
lockdown.

Mahalaxmi Fibres is a manufacturer of textiles. They weave cotton and synthetic Sarees out of yarn
on several weaving machines they own. Their manufacturing unit is situated in Sachin GIDC area of
Surat. The proprietor is at the helm of affairs of an ancestral business he inherited from his family.
They have 16 salaried employee/workers working with them while another 20 are daily wage
workers. Their machines/looms are Japan manufactured. The abrupt imposition of lockdown
throughout the country affected their business operations. For first three months it was totally shut,
initially because of lockdown and later because workers residing inside the factory premises got
contaminated because of which factory was declared as containment zone by the municipal
authorities for twenty‐one days.

As Mahalaxmi Fibres is in the business for 4 decades they had a little to worry about liquidity and
continuity of the business. While the operations were totally shut during the lockdown, they allowed
some of their temporary employees to stay in the factory premises to that they do not have to worry
about the livelihood expenses. They were also paying half of the salary to their permanent
employees even when the factory was closed. But that was not the case for others in the industry.
Even after the lockdown was lifted demand (and

44
hence revenue) remained extremely low (less than 50% than normal) till 15 months. As per the
proprietor, clothing stands nowhere in the priority list of majority of the consumers during such
crises. As no one was moving out of their houses and because social gatherings were not allowed till
early 2021, there was a systematic change in general consumption pattern of the people as far as
clothing/textiles was concern.

During the interview, proprietor informed us regarding how badly the industry was affected. He
quoted the example of their relatives and friends who were doing reasonably well before the onset
of the pandemic but within four months from the announcement of the lockdown they had to wrap
up their business because situation was so uncertain that they could not bear the recurring cost of
sustaining business especially when there was no income at all.

It emerged that the proprietor was satisfied with all government policy interventions enforced to
tackle ill effects of the pandemic. He also reported that all of the workers residing in their factory
during the lockdown were getting meals by the NGOs working in coordination with municipal
authorities. Also, most of the eligible workers also got DBTs in their Jan Dhan Accounts.

Rameshbhai Zalavadiya moved to Surat from Bhavnagar in the year 2015. After working for couple of
textile manufacturing firms, he joined Krishna Dyeing as supervisor in 2018. He is a graduate and
stays here in Surat with his two dependents in a rented accommodation. He earns roughly between
INR 18,000 to 23,000 a month depending upon the working hours.

Rameshbhai was not as lucky as Pritam. His employer fired all the new and idle employees after the
operations were shut at the time of lockdown. Pritam was left unsupported without any salary or
meals. He too had little savings and therefore he had to move to his hometown immediately to get
rid of the obligation to pay house rent in Surat. He travelled from Surat to Bhavnagar in a
transportation truck owned by a family friend.

He travelled back to Surat two years after the lockdown and joined another manufacturing firm as
Supervisor with same salary he uses to get before the pandemic. During this period while he was
unemployed, he did receive Direct Benefit Transfer (DBT) and free grains from

the government. In future pandemics he expects that government should come up with such policies
that lockdowns do not disrupt industrial productions and supply chains. He acknowledges that DBTs

45
are not feasible for any government in long run hence they must make it compulsory for employers
to provide at least basic facilities (if not salary/wages) to the workers in such crisis.

The situation of Rameshbhai too indicates that lack of work, initially because of the lockdown and
later because of the shortage of demand, was the main reason behind the Pritam not getting work.
Reverse migration emerged out as a ‘consequence’ of pandemic which corroborated with the
findings of the study conducted by Gehi (2021). While DBTs were particularly helpful in easing the
plight of unemployed workers, it was also emerged that government need to run Shramik trains or
busses so that these workers don’t have to travel discretely to their hometowns in inhumane
conditions. During the interview with Rameshbhai, it also emerged that the local body (Surat
Municipal Corporation) worked with great coordination with textile employers, textile associations
of the region, NGOs and other philanthropic organisations to manage preparation and distribution of
meals, food essentials and other basic daily use items to EWS and workers employed in textile and
other industries in Surat.

Major Factors Affecting Textile Industry of Surat

Major studies conducted during this period Juneja (2020), Binh (2020), Hayakawa (2020) and Kapuria
(2021) among few, revealed that major factors affecting businesses are; 1) Government Restrictions,
2) Transport Blockade, 3) Decline in Exports, 4) Worker’s migration, 5) Cross border
interdependence, 6) Change in consumption pattern, 7) Reduced Demand & Supply and 8) Prices of
Raw Materials. Most of these studies have been conducted immediately upon the onset of the
pandemic and therefore might not reflect long term factors generated out of pandemic. Data
collected during this research highlights;

1) Government Regulations (Lockdown or Quarantine or Travel Restrictions), 2) Shortage of

Demand, 3) Shortage of transport services, 4) Liquidity crunch, 5) Difficulty in Paying Premises Rent
(if premises is not self‐owned), and 6) Shortage of Labour as major factors affecting the business in
the region. The factors affecting businesses which surfaced in this research validate the factors listed
by previous studies.

As far as manpower is concerned, Government Regulations (Lockdown or Quarantine or Travel

Restrictions), Shortage of Demand (No Work), Shortage of Supply and Shortage of Liquidity (inability
of employer to pay premises rent) were among the main factors due to which they were not getting
work. During personal interview with people employed in textile industry few complex scenarios got
emerged. The pandemic highlighted some of these concerns to be immediately addressed – 1) Lack
of Saving habit in daily wage workers,

46
2) Herding Mindset of economically weaker section to blindly follow what all others are doing
(in context of migration to hometown), 3) Lack of existence of trade unions for labours in the region,
and 4) parallel informal economy employing thousands of labour without any formal recognition or
awareness to the government makes the damage control and administration difficult.

Consequences of COVID‐19 Pandemic on Textile Industry of Surat

Factors affecting the businesses and manpower employed in textile industry have its consequences.
The ripple effect of poorly performing businesses and plight of manpower cripples the economy.
During the thorough process of reviewing existing literature, it was discovered that there was a
simple yet complicated relation and overlapping between causes and effects of pandemic, between
nations. It was found that ‘effects’ on businesses or economy in Country A, was in fact a ‘cause’ for
Country B.

To elaborate, let us take an example. Transport Restrictions (which is a Cause) in China was resulting
into Reduced Productions (an Effect) of pharmaceutical ingredients. This Reduced Production of
pharmaceutical ingredients in China was creating a Shortage of Supply (a Cause) in countries like
India which depends on Chinese ingredients to make generic medicines, which in turn was Reducing
Production (an Effect) of generic medicines in India and Generating Unemployment (an Effect) in
factories. Now, Reduced Production and Restricted Exports of generic medicines in India have
become cause in the United States for Rise in Price (an Effect) of Medicines in local market there.

1) Supply Chain Disruptions,

2) Reduced Exports,

3) Cash Flow Constraints,

4) Orders cancellations,

5) Migration of Workers,

6) Crashing Stock Markets,

7) Increase in unemployment,

8) Change in social life of people and

9) Shutting down of businesses as major consequences of COVID‐19 pandemic on businesses and

manpower.

Livelihood & Migration Plight of Workers

47
Transport system was initially shut down during the lockdown. Non availability of travel options
forced many to start walking towards home which was hundreds if not thousands of kilometres
away. Shocking images of workers and labours walking across national highways rocked the
television news media. As explained earlier the workers, labours & EWS had a little savings and
whatever they had got exhausted within matter of few days because many

of them had, on an average, at least 3 dependents to be fed. Therefore, they had no option but to go
back to their hometown where they don’t have to worry about paying rents. Administration, not
anticipating this need of workers and arrange transportation for them to travel back home, left them
with no option but to start walking on highways.

Salaried employees or the economically middle‐class workforce belonging to textile industry

somehow managed to stay in Surat with whatever savings they had but daily‐wage workers, porters
and transport vehicle drivers employed in the textile industry were particularly affected with limited
or no access to social security and majority of them living in poverty. Loss of livelihood led to their
inability to pay rents and even food. Many among these workers were stranded in Surat after lost
their job. They couldn’t even afford to pay for tickets to go back to their hometown when finally,
government allowed Shramik trains. Government’s public appeal to the employers to accommodate
and facilitate the workers worked well initially but when the employers realised this is not a
short‐term crisis, they gradually started expressing their inability to pay wages or to house or fed
them.

Many workers faced backlash in their villages upon reaching soon after the lockdown, merely
because villagers feared that incoming workers from cities will spread the virus in the village and
discrimination followed. Direct benefit transfers did help some of these workers but it was
equivalent to few drops in the ocean given the current inflationary situation.

Government Interventions and the Aftermath

In order to tackle crippled economic situation, the government of India announced series of
monetary and fiscal interventions called Atma Nirbhar Bharat Package (ANBP) worth 20 Lakh Crore
which was equivalent to 10% of India’s GDP. Apart from fuelling the COVID sick economy it was also
aimed at boosting businesses, attracting investments and to strengthen Make in India13 campaign.
There were many initiatives aimed to aid households like; 1) In‐

48
13Make in India is a campaign of Government of India focused at encouraging businesses to buy and
produce in India so as to be self‐sufficient.

kind (food & cooking gas) grants and cash via Direct benefit Transfer (DBT)14 to economically
weaker section and to Jan Dhan Bank Account15holders. 42 Crore individuals received financial
assistance of INR 68,820 Crore under Pradhan Mantri Garib Kalyan Package (PMGKP), 2) increased
wages for MGNREGA16 workers, 3) Collateral free loans to Self Help Groups (SHG) and 3)
Employment provision for migrant workers in Pradhan Mantri Garib Kalyan Rojgar Abhiyaan
(PMGKRA). Policies aimed to aid businesses are describes below –

• 3 Lakh Crore ‐ Collateral free lending for MSMEs with 100% credit guarantee.

• Partial Credit Guarantee Scheme 2.0 – for Non‐Banking Financial Company (NBFC).

• 30,000 Special Liquidity Scheme for NBFCs.

• Partial credit guarantee scheme for Public Sector Banks on borrowings of non‐banking
financial companies, housing finance companies and micro finance institutes.

• Credit facilities for street vendors through PM Svanidhi17 Scheme.

• Postponement of tax‐filling dates and other compliance deadlines.

• Reduction in penalties for outstanding GST.

• Fast clearing of MSME dues and change in definition of MSMEs

• New policies of Public Sector Units

• Deregulation of agriculture sector.

• Commercialisation of coal mining

• Higher FDI in defence & space

• New power tariff policy

• Moratorium on instalments of Bank Loans for six months

Ministry of Textiles also announced certain measures to tackle the ill effects of Covid‐19 on economy
via Press Information Bureau (PIB) on 20th September 2020. According to the

49
14Direct benefit Transfer (DBT) is an initiative of Government which transfers cash into bank
accounts of beneficiary directly without involving bureaucracy or state departments so as to
minimize corruption in distribution of funds among beneficiaries.

15Jan Dhan Bank Accounts are bank accounts opened under Pradhan Mantri Jan Dhan Yojana
(PMJDY) which encourages unbanked section of the society to open bank accounts with zero balance
and minimal identity requirements.

16MGNREGA is Mahatma Gandhi National Rural Employment Guarantee Act, a scheme of union
government in which government provides 100 days of guaranteed employment to rural labours.

17PM SVANidhi is a collateral free credit scheme of Government of India to provide easy and
collateral free credit to street vendors across the nation.

ministry, major problems faced by the economy, as per the ministry was – production disruption and
raw material prices, transportation problem, non‐availability of skilled workers, working capital &
cash flow, reduced export/import orders and other restrictions. Hence the government made
following policy changes to improve the situation ‐

• Government continued the RoSCTL (Rebate of State and Central Taxes and Levies) scheme
until such time it was merged with Remission of Duties and Taxes on Exported Products (RoDTEP)
scheme.

• In order to boost exports in MMF sector, Government had removed anti‐dumping duty on
PTA (Purified Terephtallic Acid), a key raw material for the manufactures of MMF fibres and yarns.

• A special measure was initiated to alleviate the difficulties of beneficiaries under Amended
Technology Upgradation Funds (ATUFS) was initiated in the Ministry of Textiles during the Covid‐19
pandemic.

• On‐boarding to GeM: to provide support to the handloom & handicraft sectors and to
enable wider market for handloom weavers/artisans/manufacturers, steps have been taken to
on‐board weavers‐artisans on Government e‐Market place (GeM) to enable them to sell their
products directly to various Government Departments and organizations.

• Social media campaign #Vocal4handmade was launched on the 6th National Handloom Day
by the Government, in partnership with all stakeholders, to promote the handloom legacy of India.

On the basis of data collected from businesses it was found that interventions announced by the
government had mixed reactions on ground. While majority of the respondents supported the
intention with which policies and the overall economic stimulus package were implemented by the
government but they were quite unhappy with impact these policies were making to stabilise the
volatile business environment. As per respondents, policy interventions like – 1) Collateral free loan

50
to MSMEs, 2) New definition for MSMEs, 3) Extension by banks to the businesses to be classified as
NPAs, 4) De‐criminalisation of certain defaults or compliances by the businesses, 5) Extension of
time to pay taxes, 6)

Changes in Insolvency & Bankruptcy Codes, 7) Extension to furnish Audit reports and 8) Rebate in
Levy on certain imports; were definitely helping the businesses in mitigating the negative effects of
COVID‐19 pandemic to some extent. Some businesses also expressed concerns regarding the most
popular decision of the government, that is, Banks providing Moratorium in paying EMIs. It was not
positively seen by businesses. Main reason behind businesses not looking at this scheme positively
was their misconception. Most of the respondents seemed unaware about how the scheme works.
Right after the scheme was announced, businesses were under the impression that the scheme is
going to help them initially but at the same time it will accumulate the amount due to be paid to the
bank and postpone it to be paid on a later date which in turn become more difficult for them to pay
at any given date in future. While the scheme actually proposed that after the completion of
moratorium period of let say six months the total loan amount will be then divided into remaining
duration (in months) of loan and EMI will be recomputed, making negligible impact on the final EMI
amount. Also, Prime Minister’s appeal to the landlords to allow some rebate in rent or lease paid by
the lessee or the businesses was not making significant impact. It initially worked well for the first
and second month after the lockdown was first announced but soon the landlords realised that this
situation is going to persist for long time and therefore, they started asking for full payments.

Political bias of the respondents was also a minor factor while the question about government’s
policy intervention was asked. Those not in support of the current regime of the establishment were
out rightly rejecting the policies without discussing the merits of the steps taken to mitigate the ill
effects of COVID‐19 pandemic on textile industry of Surat. As a part of suggestions, the businesses
expected – 1) Monetary subsidies on imports, 2) Decrease in Bank Credit Rates, 3) Reduction in
taxes, 4) Normalise the transportation system during future lockdowns and 5) More economic
packages at regular intervals.

People employed in the textile industry were seemed quite satisfied with policy interventions. The
respondents agreed that government policies like – 1) Direct Benefit Transfer (DBT) to economically
weaker section, 2) Pradhan Mantri Garib Kalyan Anna Yojana, 3) Cooking gas under Ujjwala Yojana,
4) Strengthening of MNREGA and 5) Running Shramik Trains for economically weaker section helped
the businesses. It was also found

that government must transfer more of DBTs particularly to most economically vulnerable section of
workers or labours that became houseless and foodless within the matter of days after
announcements of lockdown as they ran out of savings and had to rush back to their hometowns.

51
Manpower employed in the textile industry of Surat was expecting following government
interventions – 1) More Direct Benefit Transfers (DBT) to their Jan Dhan Account, 2) provisions for
food during lockdown from local authorities, 3) More Shramik Trains during such crisis to travel back
home, 4) Rules against discrimination against incoming migrants, 5) Rules for employers to absorb
laid off employees or workers after normalising situation, and

6) Collateral free loans to start up a new business.

All the factors affecting the textile industry and its consequences are directly or indirectly generating
from the travel restrictions imposed by the government. And imposing travel restrictions is the soul
and most essential part of Standard Operating Procedures (SOP) in place worldwide to prevent a
contagious outbreak or pandemic of airborne nature to spread across geographies. Hence it is
inevitable for any government even in future to impose such a massive nation‐wide lockdown
without facing total economic closure therefore it is better the governments worldwide frame such a
mechanism so that economies can be brought back to pre‐pandemic stage as quickly as possible
after lifting restrictions by anticipating possible outcomes taking into account the current experience
and suggestions and policy feedback recieved

Policies Aimed at Farmers –

• Concessional credit to farmers over and above existing facilities.

• 30,000 Crore Additional Emergency Working Capital Funding for Farmers through National
Bank for Agriculture & Rural Development (NABARD)

Ministry of Textiles also announced certain measures to tackle the ill effects of Covid‐19 on economy
via Press Information Bureau (PIB) on 20th September 2020. According to the ministry, major
problems faced by the economy, as per the ministry was – production disruption and raw material
prices, transportation problem, non‐availability of skilled workers, working capital & cash flow,
reduced export/import orders and other restrictions. Hence the government made following policy
changes to improve the situation ‐

• Government continued the RoSCTL (Rebate of State and Central Taxes and Levies) scheme
until such time it was merged with Remission of Duties and Taxes on Exported Products (RoDTEP)
scheme.

• In order to boost exports in MMF sector, Government had removed anti‐dumping duty on
PTA (Purified Terephtallic Acid), a key raw material for the manufactures of MMF fibres and yarns.

52
• A special measure was initiated to alleviate the difficulties of beneficiaries under Amended
Technology Upgradation Funds (ATUFS) was initiated in the Ministry of Textiles during the Covid‐19
pandemic.

• On‐boarding to GeM: to provide support to the handloom & handicraft sectors and to
enable wider market for handloom weavers/artisans/manufacturers, steps have been taken to
on‐board weavers‐artisans on Government e‐Market place (GeM) to enable them to sell their
products directly to various Government Departments and organizations.

• Social media campaign #Vocal4handmade was launched on the 6th National Handloom Day
by the Government, in partnership with all stakeholders, to promote the handloom legacy of India.

There were certain other schemes launched by Ministry of Textiles:

• National Handloom Development Programme (NHDP)

• Comprehensive Handloom Cluster Development Scheme (CHCDS)

• Handloom Weavers’ Comprehensive Welfare Scheme (HWCWS)

• Yarn Supply Scheme (YSS)

Under the above listed schemes, financial support was provided for raw materials, purchase of
looms and accessories, design innovation, product diversification, infrastructure development, skill
upgradation, marketing of handloom products and loan at lower rates.

All the above stated government schemes announced till May 2021 were considered while framing
questionnaires for the survey for primary data collection. Government is, till date, announcing
policies and making procedural changes regularly on the basis of feedback they are getting because
the pandemic is still ongoing and there still exists risk of contagious waves. But was not possible to
incorporate all policies beyond the date when questionnaire was finalised. Effectiveness of these
interventions will be analysed in the section following.

Relevance of Government Interventions

A. Upon asking whether the landlord decreased/waived off the rent of the premises leased by
them for their businesses during COVID‐19 Pandemic, 38% responded positively while 45%
of business said their landlord did not decrease or waived off their rent during the

53
pandemic. 17% were those upon whom this question was not applicable meaning they were either
operating from premises owned by them or from their home.

B ‐ Effectiveness of Prime Minister’s appeal to decrease Rent/Lease of Rented Premises

Upon asking whether the government’s appeal to landlords, to waive off or postpone payment of
rents from tenant or lessee, did helped in any manner during pandemic? 41% of respondents
reacted by saying yes it did while 42% of businesses said it didn’t help in any manner during the
pandemic. 17% were those upon whom this question was not applicable meaning they were either
operating from premises owned by them or from their home.

C ‐ Effectiveness of government stimulus package in overcoming supply shortages

The question was asked whether government stimulus package helped them in overcoming supply
shortages of raw materials and consumables needed for production in their textile business. 36% of
them replied positively implying that they got some assistance in overcoming shortages of these raw
materials and consumables during the pandemic while 6% responded negatively. Majority of the
respondents, that is 58% said this question is not applicable to them implying were not into
manufacturing. They were either traders or retailers.

D ‐ Suggestions on how can government help in overcoming supply shortages

Respondents were asked, how they think government can help in overcoming supply shortages they
are facing, to which majority of them replied by saying that government must ‘Provide Subsidies’,
‘Ease bank credit rates’ and ‘Reduce taxes’. Respondents also opined that announcing economic
packages would also help.

E ‐ Effectiveness of government stimulus package in overcoming demand shortages

The question was asked whether government stimulus package helped them in overcoming demand
shortages in their textile business. 93% of them replied positively implying that they got some relief
during demand shortages because of government stimulus package during the pandemic while 7%
responded negatively.

F ‐ Suggestions on how can government help in overcoming demand shortages

54
Respondents were asked, how they think government can help in overcoming demand shortages
they are facing, to which majority of them replied by saying that government do ‘Policy change to
normalize supply chain’ and ‘Reduce taxes’. Significant number of respondents also opined that
announcing economic packages would also help.

G ‐ Effectiveness of government stimulus package help in overcoming liquidity shortages

The question was asked whether government stimulus package helped them in overcoming liquidity
shortages in their textile business. 95% of them replied positively implying that they got some relief
during demand shortages because of government stimulus package during the pandemic while 4%
responded negatively.

H ‐ Effectiveness of Bank’s Moratorium Scheme for Businesses

The Question was asked whether Bank’s Moratorium Scheme was beneficial enough to mitigate
pandemic generated problems, to which 85% of the businesses responded positively which
remaining 15% said it wasn’t beneficial to them during the pandemic.

I ‐ Effectiveness of providing collateral free loans to MSMEs

Upon asking whether the businesses has applied for MSME’s collateral free loan with 100% bank
guarantee from banks, 77% of businesses responded positively implying that they did applied for
such credit while remaining 23% said they haven’t applied for any such credit from banks during the
pandemic.

J ‐ Effectiveness of new definition of MSME in helping businesses

Businesses under the study were asked whether new definition of Micro, Small and Medium
Enterprises (MSMEs) as announced by government post lockdown period was helpful in any manner.
89% of respondents responded positively and 11% of them said it didn’t help them in any manner.

K ‐ Effectiveness of extending time limits to be classified as Non‐Performing Asset (NPA)

Government, during unlocking phases post lockdown extended time limits for the businesses to be
classified as Non‐Performing Assets (NPAs) for Banks. Respondents were asked whether this was to
any help for them, to which 97% of businesses responded by saying yes which the rest in negative.

L ‐ Effectiveness of changes incorporated in Insolvency & Bankruptcy Code (IBC)

55
Government also made changes in Insolvency & Bankruptcy Code (IBC) to give some relief to
businesses during pandemic. Upon asking whether these changes were beneficial to them, 91% of
respondents responded positively while the remaining 9% said it was of no use to them.

M ‐ Effectiveness of changes incorporated in Companies Act

Government, post lockdown announced certain changes in Companies Act to help businesses in
strain. Respondents were asked whether these changes made in companies act was beneficial to
them, to which 86% of them replied positively while remaining 14% said any such change was of no
use to them.

N ‐ Effectiveness of De‐criminalizing certain defaults under Companies Act

Government post nationwide lockdown de‐criminalised certain defaults under Companies Act. Upon
asking whether these changes were beneficial, 95% of the businesses responded positively while
remaining 5% responded negatively implying these changes made in companies act was of no use to
them.

O ‐ Effectiveness of extending due dates to pay taxes

Government also announced relaxations in due dates for paying taxes. Upon asking there such
extension in dates for paying taxes helped business in any manner, all the respondents responded
positively.

P ‐ Effectiveness of extending due dates to furnish audit reports

Along with above relaxations, government also extended due dates to furnish audit reports. Upon
asking whether this initiative of government helped businesses in any manner, 92% of respondents
said yes while 8% of them said it was of no use to them.

Q ‐ Effectiveness of exempting certain goods from import

Many goods which were essential in nature for tackling pandemic and certain goods in priority
sector were given exemption from payment of import levy. Upon asking whether any such
exemption was beneficial to the businesses, 18% of the respondents responded positively while 82%
of the businesses responded negatively which implies any such exemption in import levy was of no
use to them.

Government Interventions towards ‐ Manpower

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A ‐ Effectiveness of Government Stimulus Package in mitigating livelihood problems of Manpower

The question was asked to the respondents whether the stimulus package as announced by
government helped them in overcoming livelihood problems. 67.5% of them reacted positively while
32.5% said it was of no use to them.

B ‐ Effectiveness of Pradhan Mantri Garib Kalyan Anna Yojana (Food Scheme) to Manpower

The question was asked to the respondents whether they were benefitted from Pradhan Mantri
Garib Kalyan Anna Yojana (Food Scheme). 69.2% of them responded positively while 30.8% of them
said they were not the beneficiary of the said scheme.

C ‐ Effectiveness of Direct Benefit Transfers (DBT) in Jan Dhan Bank Account to Manpower

Respondents were asked whether they got any Direct Benefit Transfer (DBT) for having a Jan Dhan
bank account to which 67.5% of them responded by saying yes they for monetary remittances in
their Jan Dhan Account from the government while 32.5% said they were not the beneficiaries.

D ‐ Suggestions on how can Government help

The respondents were asked how else could the government help in such difficult times to which
almost all of them responded by saying government must look forward to more Direct Benefit
Transfers (DBT). A considerable number of individuals also opined that normalising the situation
through policies and normalising supply chain could help.

57
Conclusion
Pandemic created a unique situation in this globalised world having a very little precedence.

Situations were complex, turnout of events were unprecedented and economies were crashing
because of interdependence of global supply chains. In order to study these effects in complex
environment, study has to be undertaken right from the scratch. Past studies, theories and
hypotheses may not guide us appropriately, considering the fact that a globalised and digital
civilisation of humans was facing such a situation for the first time. Therefore, aim of this exploratory
study was to answer research questions which have never been studied in depth before, in order to
generate a ‘frame of reference’ so that further in‐ depth studies can be developed in future. Hence,
this exploratory research intends to lay the foundation for future analysis.

The primary objective of this research is to study Impact of COVID‐19 Pandemic on Textile Industry
of Surat. To examine this issue, secondary objectives were framed ‐ to identify factors effecting
textile industry of Surat, to identify consequences of COVID‐19 pandemic on textile industry of Surat,
to enlist governmental interventions already in force to tackle adverse effects of COVID‐19 pandemic
and finally to study relevance of these governmental interventions implemented to tackle adverse
effects of COVID‐19 pandemic. Following are the major findings emerged out of this study.

Factors Affecting Textile Industry ‐ Major factors found during the study which affected the surveyed
textile businesses were; 1) Government Regulations (Lockdown or Quarantine or Travel
Restrictions), 2) Shortage of Demand, 3) Shortage of Shipping/transport services, 4) Shortage of
Liquidity, 5) High Rent of Premises (if not self‐owned), and 6) Shortage of Labour.

 Imposing lockdowns or travel restrictions is a part of standard practice used by governments

worldwide to curtail the spread of such airborne outbreaks and therefore it is inevitable for
governments to avoid imposing such restrictions, as consequence these restrictions will accompany
economic slowdown. This therefore makes Government restrictions one of the major factors
responsible to effect textile businesses in Surat city.

 Government restrictions curtailed the transportation throughout the country, restricting the
customers to reach the marketplace which caused major reduction in demand of textile products of

58
Surat textile industry. 79% of the respondents said their demand was decreased by 25‐50%. Rise in
price of products and generalised change in consumption patter of consumers can explain a
decrease in the demand.

 Government restrictions also put on hold all non‐essential transportation and shipping
services throughout the nation. This was a leading factor which affected textile industry of Surat, as
neither raw material nor finished products are being shipped.

 All the above factors such as government restrictions, shortage of demand and shipping
services contributed in cancellation of orders and thus causing shortage of cash and liquidity with
businesses which directly affected their solvency. 83% of the respondents accepted that they faced
such liquidity crunch.

 Running a Textile business in Surat is a costly affair. One needs to rent or lease a premises in
the costly textile market area if it is not self‐owned. Shortage of liquidity makes it very difficult for
businesses to high pay rents when operations or trading is totally shut, which makes this one of the
major factors concerning 68% of surveyed textile business of the region.

 There was no work during lockdown for Lakhs of manpower engaged in textile industry that
have migrated to Surat in last two decades in search of work, making it the world’s fastest
developing city. Lack of work exhausted their savings and difficulty in paying for basic needs forced
them to migrate back to their hometowns causing shortage of

labour here initially for a year after the lockdown was lifted. 69% of surveyed businesses accepted to
have faced shortage of workforce.

Conclusion
The aim with which this research was done is to set a frame of reference for the subject, which was,
till date, not studied appropriately because of its uniqueness and newness to the globalised and
digitalised world. The base has been formed by studying impact of COVID‐19 pandemic on textile
industry of Surat, using which high end future studies can be done. The objectives of this research
were; 1) to identify factors effecting textile industry of Surat, 2) to identify consequences of
COVID‐19 pandemic on textile industry of Surat, 3) to enlist governmental interventions already in
force to tackle adverse effects of COVID‐19 pandemic and finally 4) to study relevance of these
governmental interventions implemented to tackle adverse effects of COVID‐19 pandemic.

59
Major factors highlighted during the study which affected the textile businesses under the research
were ‐ Government Regulations (Lockdown or Quarantine or Travel Restrictions), Shortage of
Demand, Shortage of Shipping/transport services, Shortage of Liquidity, High Rent of Premises, and
Shortage of Labour. These factors affecting textile businesses under research in Surat. For the
manpower employed in the textile industry of Surat which was under research, shortage of work
was the largest factor impacting 95.8% of th workforce. This shortage of work was a result of ‐
Government Regulations (Lockdown or Quarantine or Travel Restrictions), Shortage of Demand (No
Work), Shortage of Supply (Raw materials, consumables and manpower) and Shortage of Liquidity
(inability of employer to pay premises rent) were among the main factors due to which they were
not getting work.

Major consequences highlighted during the research which affected textile businesses under the
research in Surat are ‐ Cancellation of Orders (Reduction in demand), Temporary Shutting down of
Operations, Decreased Working Hours, Shortage of Liquidity, Restricted spending, Reduced pay to
workers, Reduction in workforce and Increased risk of Insolvency. These major consequences of the
COVID‐19 Pandemic on textile businesses of Surat were in line with what the recent conducted by
Maital (2020), Anner (2020), Binh (2020), Gehi (2021) and Kumar (2021), reflected. 95.8% of the
workforce under the research was negatively impacted and reduction in work was one of the
foremost consequences they were facing which resulted in – 1) Reduced working hours, 2) Reduced
pay, 3) Taking paid/unpaid leaves, 4) Dismissal from job, 5) Situations forcing labours to migrate back
to hometown, inability to pay for livelihood, 6) Deteriorated standard of living, among few.

It was found that interventions announced by the government generated mixed reactions on ground
inclining positively towards the policies. While majority of the respondents supported the intention
with which policies and the overall economic stimulus package were implemented by the
government but they were quite unhappy with impact these policies were making to stabilise the
volatile business environment. As per respondents, policy interventions like – 1) Bank’s Moratorium
Scheme, 2) Collateral free loan to MSMEs,

3) New definition for MSMEs, 4) Extension by banks to the businesses to be classified as NPAs, 5)
De‐criminalisation of certain defaults or compliances by the businesses, 6) Extension of time to pay
taxes, 7) Changes in Insolvency & Bankruptcy Codes, 8) Extension to furnish Audit reports and 9)
Rebate in Levy on certain imports; were definitely helping the businesses. People employed in the
textile industry were seemed quite satisfied with policy interventions. The respondents agreed that
government policies like – 1) Direct Benefit Transfer (DBT) to economically weaker section, 2)
Pradhan Mantri Garib Kalyan Anna Yojana, 3) Cooking gas under Ujjwala Yojana, 4) Strengthening of
MNREGA and 5) Running Shramik Trains for economically weaker section, helped the manpower of
the industry.

Unique crisis calls for unique solutions. While the exact magnitude of impact and strategies to
combat the pandemic may be dynamic and evolutionary as and when the crisis unfolds, this study
has tried to meet its objectives by spelling out a frame of reference and preparing a base for future
in‐depth studies.

60