"Global recession; it would impact heavily on the country's exports of garments owing to the nature of the product, the recession and the destination of the country's export markets being recession- struck countries"

Karnataka is major apparel sourcing destination for the global market with exports of over rupees 8, 500 crore in 2006-07 making it the largest garments exporter in India.The garment industry in Karnataka is the largest employment provider next to beedi industry. Around 2, 931 garment manufacturing units are operating in the state. Out of which 2638 units are located in Bangalore. The total number of workers working in the state is 6, 50,500 out of which 5, 40,670 (83 per cent) workers are working in Bangalore. The majority of the workers employed in the garment industry in the state comprise of skilled, semi-skilled un-skilled and workers. Women form a 93 per cent of workforce in the industry.

Since 1985 garment exports have been the single most important item of export and the apparel industry has been the largest manufacturing industry in the country. The decline in demand for clothing, especially in the US and Europe which are the country's main export markets, could damage the apparel industry irreparably and cause serious strains on the economy. Some garment factories have already closed, others are cutting down on overtime payments and still others exploring the possibility of part time employment to its full time workforce. Beyond doubt new recruitment to the industry has been halted. An estimated of 40, 000 workers have been laid off and some 50 garment factories have put up shutter in the past 6 months. But trade union leaders claim that unscrupulous apparel industry elements were blowing the global recession to trim down on concessions given to workers.

In comparison to other countries the local apparel industry is quite healthy at the moment but things could change for the worse in a month or two. However apparel factory owners were blowing up the global recession to drastically reduce the jobs/ benefits given to employees. One of the big groups in Bangalore has not settled the workers Group Gratuity benefit those who left in December 2008. This is a cunning ploy of the factory owners to reap more personnel profits at the expenses of the poor workers. However some garment factory owners are spreading scare stories to create panic and show bleak pictures to their workers while gain in a personal capacity.

Garment factories owners to avoid workers unrest factory owners cunningly announce the closure of the factory for a week citing some reasons or other and allow the workers to go on leave for this period, however when the workers report back after a week they found the factory closed and the owners missing, they were opportunities with zero facts on the actual situation in the garment factories. Indian apparel industry was one of the world's best performing industry during the past few years, but now their is a dark clouds in the industry graph, industry analysts predict that by the end of 2009 approximately half a million direct workers from garment sector will lose their jobs, considering the other people who are indirectly associated with the textile industry. Total direct and indirect job losers are expected to reach 6 million. Approximately 60% of the total garment manufacturing in India is exported to foreign market like EU, US, and Japan generating revenue of up to US$52 billion. Garment exports one of the biggest employments in the country. Economic slowdown in the US, and EU has affected the garment business in India resulting in a drastic decline in the country's garment exports. As meltdown diminishes the garment sales in US, Indian suppliers are beginning to feel the pinch. Food is the first preference over clothing, as the customers of the western countries curtail their expenses to fight slowdown; export market of garments in countries like India began shrinking. To sustain themselves in the market garment manufactures chose to go in for cost cutting, there by opting for lay off/ closer units. Estimate states that during end of 2008 to June 2009 almost 8, 00, 000 garments and textiles employees had lost their jobs.

During Oct 2008 as economics' slowdown branched out the total output of the garment sector comedown by 10% simultaneously investment in garments were also decreasing, ultimately affecting the profitability of the industry. Some biggest apparel companies in India, which are mainly located in Bangalore, Tirupur, Ludhiana generates employment for 400000 jobs has suffered a 50% loss in sales especially the export during 2008. This has affected 20-30% of jobs in Bangalore and Tamilnadu. The top 10 largest garments manufactures in state if the sag in garment exports has knocked India. This has ultimately resulted in retrenchments and lay off, majority of the layoff target the unskilled workers/ daily wageworkers that comprise 25-30% of a company workforce. Garment industries running on 75% of their capacities or have reduced their three shifts into one. Garment industry in Bangalore is hit hard by heavy loss, less domestic consumption and cancelled export orders. It is feared by the apparel industry people that the slowdown would not improve in the near future making 2009 a gloomy year for the apparel industries. A further melt down will be a huge blow on the economy of the country. The worst is not yet over for the apparel sector.