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

India's textile industry employs about 45 million people and produces a large volume. However, it is being out-competed by industries in Vietnam, Bangladesh and South-East Asia. Challenges hindering the Indian textile industry: 1) Lack of modernization: Fragmented industry with out-dated machinery 2) Out of touch with global trends: Customs, savings, merchandise and IP integration; manual T-shirt 3) High costs of production: Logistics and electricity costs are high 4) Countries like Bangladesh have more favourable policies for the textile industry 5) Lack of branding and marketing support 6) Lack of well-defined USP 7) Focus on low value components to creating yarns and fabrics Way forward: 1) Create fund for textile modernization: Subsidize new machinery 2) Provide consultancy services and market inputs to better align supply with demand 3) Focus on manufacturing traditional fabrics and patterns and create fashion-wear 4) Reduce production cost in logistics and electricity 5) Enhance ease of doing business