The textile and apparel industries of India and China play a pivotal role i
n the economy of both countries. This sector accounts for 30% of India's an
d 25% of China's total export volume. Unfortunately, sluggish exports, high
costs and poor domestic demand are plaguing the Indian textile industry. I
n this paper we illustrate the various indicators that highlight the abysma
l state of cotton industry in India and provide detailed analysis, identify
ing the underlying causes as well as the possible remedial measures.