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The garment sector and the pandemic: Understanding the impact on workers in India

Author

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  • Noronha, Ernesto
  • D'Cruz, Premilla
  • Shukla, Anurag

Abstract

The global garment supply chain, which consists of a complex network of manufacturers, suppliers, retailers and workers located across nations was severely impacted by the pandemic. It encountered a demand shock, as cancellations of orders and decreased consumer spending resulted in substantial revenue losses. Given this, we were interested in understanding the effectiveness of the state mediated economy (SME) model where the state's capacity to intervene and support the economy is crucial. We found that the state in case of the garment sector did not infuse funds to support the suppliers in the garment GVC during the COVID-19 pandemic. This had far-reaching effects on employment, wage security, and workers' rights. In fact, the state reinforced the preservation of a low-wage regime through the non-enforcement of its own advisories. The sudden loss of jobs and income, along with severe restrictions on mobility due to the lockdown, plunged workers into an unprecedented crisis.

Suggested Citation

  • Noronha, Ernesto & D'Cruz, Premilla & Shukla, Anurag, 2026. "The garment sector and the pandemic: Understanding the impact on workers in India," IPE Working Papers 266/2026, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    • Handle: RePEc:zbw:ipewps:340185
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    References listed on IDEAS

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    JEL classification:

    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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