The study recommends changes in existing schemes such as TUFS suggesting that the amount sanctioned under it fall short of re-imbursement liability of the government.Hence, its allocation should be increased. Spinning and composite mills have been the prime beneficiaries of the sector. The benefits of the scheme should be extended to processing and garment sector as these are the highest value added products in textile manufacturing chains and earn maximum foreign exchange. The Ministry of Textile should also ensure timely completion of Textile Park projects made under STIP and also it should further open up the sector by reducing customs duty on import of textile machinery and equipment to zero level in next 4-5 years.The industry suffers infrastructure constraints which add to transportation and transaction cost and renders this industry and its logistics fragile which make it non-competitive. The textile industry is in the dire need of fresh investment in capacity expansion, modern technology and machine installation. The sector attracts lowest level of foreign direct investments in spite of the fact that 100% FDI is allowed in it under automatic route. The global manufacturers and private equity funds should be encouraged to invest in partnership with the small scale manufacturers to boost investment in the sector Another constraint is on the form of labor reforms. The industry is governed by stringent labor laws which hamper its competitiveness and delays induction in reforms of itSource: Associated Chambers of Commerce and Industry of India”