The textile and garment sectors play an extremely significant role in India in terms especially of share in value added, foreign exchange earnings, and employment. As stated by the Indian council of Research on International Economic Relations (ICRIER, 2008) the impending dismantling of quotas in 2004 under mandate from the Agreement in Textile and Clothing of the WTO, the focus has clearly shifted to the adoption and maintenance of global quality standards, all over the Indian textile and clothing exports. Because Indian textile and clothing sector is predominantly cotton based (Verma, 2003), this study would focus mainly on the cotton textile and apparel, and look at the entire value chain from fibre to garment and retail distribution.
Pressures to increase the quality and lower the cost of apparel are coming from accreditation boards, the media, and comparisons with other facilities and government agencies. Technology adoption has emerged as an important determinant of competitiveness in recent global trade. Gaining competitiveness in the quota free trade has become a driving force for the garment firms to adopt technologies and maintain quality of as per the accreditations and export orientation, cost of capital, technical skills, and competitive advantage ( Bala, 2006).