India is likely to outdo China in the textile sector. Contributing factors are cheap labor and modernization. With quality and skilled labor and machinery, India can easily overcome Chinese competition in the textile industry as labor costs in China are very high compared to India’s.

High-tech machines which help deliver quality goods will enable India to reach the set targets at the production level. Tamil Nadu alone accounts for 39 per cent of the total textile production in the country. There are 4.13 lakh handlooms in Tamil Nadu providing employment to 6.08 lakh weavers while the 3.66 lakh power looms and 1,889 spinning mills provided employment to another 2.40 lakh people. Knitwear and woven garment production units provide employment to over five lakh people.

India aims at doubling annual revenue from textiles by 2025. The Indian textile sector contributes 16 per cent to the country's GDP. Foreign direct investment is being encouraged in the textile sector, which has the potential to create millions of jobs. The textile sector is capable of strengthening the rural economy and creating large-scale employment.

However, the Indian textile industry is over-dependent on the European Union and the US for exports. But when the season goes away in those markets, there aren’t enough orders.