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Synopsis The abolition of the MFA quotas on 31st December, 2004 opened new frontiers for the Indian textile market. The agreement signified a major reduction in import tariffs and controls in a phased manner, over a period of three to seven years. This poses a major competition from the EU and US textile producers as they are enabled to get a greater access to the Indian textile market, leading the industry to be prepared to face a stiff competition from both developing and developed countries. India’s textile industry, at present, is poorly organized by virtually any standard. It may probably succeed in being the major domestic provider of products in the textile market. But, it is expected to face a difficult time in the international market, moving up the value chain.