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

India was once called 'Mother of Cotton' (in 18th century), now it has become the net importer of cotton, showing the decline of Indian textile industry. Major challenges hindering the Indian textile industry: (1) Uncompetitive nature of Indian textile manufacturers. 25% of them are depreciated, leading to less export capacity. (2) Import tariffs by other nations. Example: EU apply 10% on Indian textile, 0% on Bangladesh (under FTA) and just 1.2% on Vietnam textiles. (3) Supply chain disruptions and utility. India's supply chain cost is 13-14% of GDP in compared to global avg of 9%.