Due to the Trans-Pacific Partnership (TPP) being implemented between 12 member nations, by 2017 India may easily lose around $1-2 billion or more in terms of garment and fabric exports. TPP mandates that for member countries to export garments to each other, they should source 75 per cent of the raw materials like yarn and fabric within themselves. With India not being part of the TPP, the country could lose in terms of yarn exports to Vietnam and other TPP member countries as well as garment exports to US which would now shift to other TPP member nations.

As per the observation of a senior official at the Apparel Export Promotion Council (AEPC), while the TPP is yet to be ratified, the agreement is likely to be implemented by 2017. Said the AEPC official, if so, then India's cotton yarn, fabric and apparel trade with TPP members would be affected. For instance, India exports $200-300 million worth cotton yarn to Vietnam which would be impacted since the latter would now source the same from within the TPP members.

The overall impact on loss of business to India in terms of textile and clothing exports could be anywhere between $1 billion and $2 billion, coupled with apparel exports to the US itself which is roughly worth $4 billion from India.