Examine the major challenges hindering the Indian textile industry from achieving its full potential in the global value chain.

Indian textile industry is the second largest employment generator after agriculture with 30% workforce; majority of them are women. Major Challenges of Indian textile sector: 1. Diseconomies of scale => Bangladesh with 500 machines in one unit; India with 100 comparatively 2. Poor tech upgradation => only 30%, with new technology 3. Credit crunch (40% => SIDBI Report) 4. Poor labour productivity (5-6% less than South-East Asia => Multnsey) 5. Governance bottleneck => low public awareness of MITRA Apparel / PEL

Measures required to overcome these challenges: 1. RIT for technical textiles => demand in defence, space industries 2. PM Mitra Yojana => Farm => Fiber => Fashion => Foreign (supply chain strengthening) 3. SFRUTI scheme for traditional handicrafts 4. Credit Penetration through PM Mudra 5. Labour skill upgradation as in (IM Kaushal Vikas Yojana) 6. Labour insurance & safety Net ILO against sweatshops in Bangladesh Indian textile industry requires economies of scale; global integration and local hubs for resilience.