Punjab textile industry availed Rs7,600-cr credit in 2020

Ludhiana contributes 10% to total exports

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Ludhiana contributes around 10% to total exports from the country and caters to 30% of the domestic apparel demand. With an installed capacity of 750 lakh spindles, the northern region contributes 15% to the total capacity of the country.

Vijay C Roy

Tribune News Service

Chandigarh, June 9

Punjab-based textile and apparel industry availed credit of Rs 7,600 crore as of December 2020, a decline of 6.7% year-on-year. This is due to the suspension of manufacturing activities in the aftermath of Covid-induced lockdown in March 2020, according to a report by Centre for Research in International Finance (CRIF) and Small Industries Development Bank of India (SIDBI).

The decline in credit portfolio indicates slowdown and dearth of orders in the textile and apparel sector amid the pandemic.

Out of total loan availed, Ludhiana-Jalandhar-Amritsar region accounted for Rs 7,560 crore. The number of active loans (volume) in the sector stood at around 15,000 units as of December 2020.

Ludhiana contributes around 10% to total exports from the country and caters to 30% of the domestic apparel demand. With an installed capacity of 750 lakh spindles, the northern region contributes 15% to the total capacity of the country.

With Rs 7,600 crore in its kitty, Punjab is at number six in terms of credit portfolio. Maharashtra has the largest share of credit portfolio at Rs 40,400 crore, followed by major textile and apparel clusters such as Tamil Nadu, Gujarat, West Bengal and Delhi.

Nationally, the total credit availed by the sector as of December 2020 stood at Rs 1.62 lakh crore, a decline of nearly 20% y-o-y. Over the years, apparels have contributed to a majority of exports, followed by home textiles and fabric. However, export credit as of December 2020 stands 25% lower y-o-y, largely attributable to a decline in exports due to the pandemic.

Punjab’s share in the country’s textile and garment exports is declining. From 5.14% in 2017-18, it has fallen to 4.52% in 2019-20.

Navin Chandani, MD & CEO, CRIF India, said, “In India, each state has a unique contribution to the apparels and textile sector. The Government of India announced a special economic package in May 2020 under the AatmaNirbharBharat Abhiyan that is set to benefit a large number of small-scale entities, including the weavers and artisans across the country. The right policy interventions, abundant availability and fair access to raw materials along with surplus available labour can further boost the development of this crucial sector.”