Stitched in Crisis: Navigating Fashion Law Amidst COVID-19 in India

Fashion law, otherwise called Apparel Law, is an evolving specialty that encompasses various legal issues throughout the lifecycle of a piece of clothing, from its conception to brand protection. Clients in this field include design houses, wholesalers, tailors, modeling agencies, retailers, and photographers. Given its niche nature, very few institutions in India or abroad offer specialized courses in fashion law for aspiring lawyers.

Fashion law is a multidisciplinary field that intersects with intellectual property rights (IPR), business and corporate law, international trade, consumer protection, employment law, and environmental law. This diverse legal spectrum makes practicing fashion law both intriguing and challenging.

The COVID-19 pandemic was one of the most disruptive events of 2020, impacting human lives and economic activities across sectors. The textile industry, a significant contributor to India’s exports (accounting for approximately 11.4% of India’s total export earnings in 2018-19), was severely affected. The global fashion industry faced numerous challenges, including supply chain disruptions, declining consumer demand, and shifting market dynamics.

Challenges Faced by the Fashion Industry:

Supply Chain Disruptions: The pandemic interrupted supply chains worldwide, affecting the procurement of raw materials and production schedules.
Decline in Consumer Demand: With global lockdowns in place, consumer spending on apparel and fashion plummeted.
Closure of Retail Outlets: Shopping malls and retail stores remained shut for prolonged periods, affecting sales and revenue.
Employment Loss: The textile and apparel sector, which employs approximately 60 million people in India, witnessed mass layoffs and financial distress.

In response to these challenges, the Indian fashion industry adapted in innovative ways. The Fashion Design Council of India (FDCI) introduced a COVID-19 Support Fund to assist small businesses and emerging designers. Additionally, many brands pivoted to manufacturing face masks and personal protective equipment (PPE) to sustain their operations.

Government Measures to Support the Textile Industry

To enhance the competitiveness of the textile sector, the Government of India introduced several policy measures:

Extension of the RoSCTL Scheme: The Rebate of State and Central Taxes and Levies (RoSCTL) scheme was continued until it merged with the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
Removal of Anti-Dumping Duty on PTA: The elimination of anti-dumping duties on Purified Terephthalic Acid (PTA) aimed to boost the Man-Made Fiber (MMF) sector.
Trade Facilitation Measures: The Ministry of Textiles worked on addressing trade-related challenges raised by industry stakeholders.
Financial Support Under ATUFS: The Amended Technology Upgradation Funds Scheme (ATUFS) facilitated subsidy release against bank guarantees to ease financial difficulties for businesses.
Aatma Nirbhar Bharat Abhiyaan: As part of India’s self-reliance initiative, special economic packages and credit support measures were introduced to revive struggling textile enterprises.

The COVID-19 pandemic significantly impacted the fashion and textile industries, bringing both challenges and opportunities. While supply chain disruptions and declining demand posed immediate concerns, adaptive strategies and government interventions helped mitigate some effects. Moving forward, fashion law will continue to play a vital role in navigating legal complexities within the industry.