This paper outlines the effect of phasing out of quotas on textiles trade in 2005 on textile exports from India and its competing countries. Phasing out of quotas led to increased trade in textiles. The paper outlines the trends in trade in the textile industry, share of India and other competing countries in textile and clothing imports of USA and EU - the two major textile and clothing importers of the world and issues facing the Indian textile sector. This paper concludes with some policy measures to make the Indian textiles industry globally competitive for enhancing the exports of textiles and clothing from our country.

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