India have a large share in the world trade of cotton yarn, accounting for one fourth of the total trade. However, our trade in garments is only 4 percent of the world’s total. Our spinning mills are competitive at the global level and capable of using all the fibres we produce. The weaving, knitting and processing units cannot use much of the high quality yarn that is produced in the country. There are some large and modern factories in these segments, but most of the production is in fragmented small units, which cater to the local market. This mismatch is a major drawback for the industry. As a result, many of our spinners export cotton yarn while apparel/garment manufactures have to import fabric.