In order to gain a better understanding of the problems facing India's appa
rel exports, this paper focuses on two themes. First it looks at the global
ization of apparel production and the changing competitive conditions in th
e global apparel market. The second theme is the characteristics of India's
apparel exports, the production structure that supports the export profile
, and the effects of policy regulation. In the world apparel market retaile
rs and brand-name marketers exercise the main leverage. They outsource appa
rel to meet customer demand and depend on package suppliers. India is at pr
esent a niche player in the low-value segment of the market for seasonal an
d fashion garments made of cotton fabric. India needs to restructure its pr
oduction base to meet the challenge of changing global markets. Government
policy should remove the impediments hindering the entry of large domestic
firms and foreign investment into the apparel industry.