Aggregate credit of Apparels and Textiles in India sinks
Indian textiles and apparels as of December 2020 saw a massive slump, according to the report by Crif high mark and Small Industries Development Bank of India(SIDBI).
The aggregate credit of India’s textile and apparel industries stood at Rs.1.62 trillion, a year-on-year decline of 20% as per the credit report.
Due to the immediate suspension of manufacturing activities and the immediate lockdown of covid-2020, the active loan numbers stood at 426,000 as of December 2020.
From 29.58% of September 2018 to 15.98%of September 2020, the infamous industry observed a quarterly Non-Performing Assets (NPA) decline. The bad-loan ratio in December 2020 further increased by 0.94%, nearly 8% lower than the NPAs of December 2019.
The chief executive of crif India and the managing director Mr Navin Chandani said that despite the loss percentage, the 13 big markets of India constituted 80% of the portfolio’s Aggregate credit.
“In India, each state has a unique contribution to the apparels and textiles sector. The government of India announced a special economic package in May 2020 under the Atmanirbhar Bharat programme that is set to benefit a large number of small-scale entities, including the weavers and artisans across the country,” said Mr Chandani.
Due to the prevailing pandemic, the export credit levels have declined to 25% year-on-year as of December 2020.
The apparels industry ruled the majority of export’s credit share, followed by fabric and home textiles. In the credit book, the state of Maharashtra has the most prominent credit portfolio of 25%, the report said.