China excels in the manufactured, mass-produced sector. Design is however, a strong element in India's appeal to Western apparel manufacturers. The Indian National Institutes of Fashion Technology churn out nearly 1000 graduates a year. The US International Trade Commision sees India as a significant alternative to China as a source for textile goods. Large integrated mills have been set up across textile parks in India in preparation for this change over.

India has also, significantly, adopted the product patent regime as of Jan 1, 2005 for food, drugs, chemicals and embedded software, keeping safeguards for the common weal. A 'mailbox' application process has been established for patent recognition.

The US textile industry, fearing a flood of cheap Chinese imports when the quotas expire at the end of this year, has been leading an international effort to persuade the WTO to approve a three-year extension of the quota system.

However, WTO members recognise that extending the quotas would unravel a key portion of the 1994 Uruguay Round world trade agreement, which required countries to make difficult trade concessions in a number of sectors. Many of the agreements are perceived by developing countries to be in favor of developed nations, and the developed nations are loath to give up some of their competitive advantages.

Textile makers also expect to improve on their buying power by having to place orders with fewer countries and manufacturers as opposed to the current covert arrangements split across dozens of manufacturers to avoid the quota restrictions.

The significant shifts in the textile industry will take a few years to play out, although the negative effects will likely have their impact very soon, as is usual in economic dislocations.