However, the largely fragmented structure of the industry and multiplicity of associations have inhibited it's development in a cohesive manner.

According to industry sources who attended a recently held interactive session organised here by the Confederation of Indian Industry (CII) to deliberate upon a study being carried out by Roland Berger, statutory regulations and controls are bottlenecks for a fast pace of growth in the textile industry.

Compared to India some of the other smaller Asian countries have demonstrated a better political will in putting their textile industry on the fast track. Analysts of Roland Berger, it is claimed, felt that the industry requires a renewed focus and the need of the hour is rapid and significant change utilising the current industry structure and scenario as the starting block.

The final report on the study is expected in a month's time after taking into account the suggestions made at the interactive session.

The government's role as a catalyst to change, especially it's failure to provide an appropriate policy framework as well as creation of proper multilateral linkages, came in for criticism from all quarters.

Reservation of the garment sector in the small-scale sector, which is likely to erupt into a major controversy in the days to come, and excessive controls on yarn production and exports are being cited as reasons for holding back the Indian textile and clothing industry.

The Indian industry is yet to show it's capability as a global textile power, though demand condition indicates enormous potential in the domestic market and increasing requirement for value addition in exports.

The low value realisation and price-driven approach have been factors for the low profitability of textile companies, the analysts pointed out to the spinners.

According to the analysts, the industry should be driven by the garments sector, focussing not only on exports but also on the large domestic market. This, they felt, could provide the industry a sustainable advantage as well as support the achievement of employment targets for the government.

Role of foreign investment will be critical to support India's bargaining position as there will be increased foreign interest and stakes in the Indian industry. The management consultants also went by the popular opinion that de-reservation of knitting and garments is crucial for exploitation of the domestic market potential by Indian corporates.

The handlooms should focus on value added artisan products. Powerlooms must be strengthened and supported by organised sector with input material, processing and marketing support.

Asia, with an existing strong cotton fibre base in India, China and Pakistan and increasing synthetics investments in east Asia, is poised to dominate the world textile sector in another decade's time.

India's low labour cost advantage along the value chain, as is the case with other Asian players, do not translate into a source of advantage due to low productivity levels, the analysts are claimed to have told the industry.