India needs to rethink its trade agreements. The FTA with the European Union has not taken the country far and exports are not rising. On the other hand, Indian imports from countries like Bangladesh are rising and eating into the share of domestic manufacturers because of South Asian Free Trade Area (SAFTA). This is a trade agreement that came into force in 2006 between India, Pakistan, Bangladesh, Bhutan, Maldives, Nepal and Sri Lanka.

Other major areas that need to be worked upon include a change in traditional mindsets. New practices for sustained growth have to be adopted, creating economies of scale, inviting foreign investment and focusing on research and development. The workforce has to be skilled. Competitive products have to be created. Processing is another segment where huge capacities need to be generated and quality improved.

There is a need to create an end-to-end value chain in the textile sector. Ahmedabad and Surat are major centers for producing cotton and manmade fibers and fabrics, aimed predominantly at the low-value domestic market. Gujarat is the largest producer of cotton and manmade fibers. Low-value products like cotton and fabrics are being exported from the state while high-value products like apparels are being imported.