The impact of economic slowdown in US, the European Union and developed countries has already affected India's export target of US$ 25 billion including textiles and handicrafts for 2008-09. The country’s textile export performance during 2007-08 was $ 22.5 billion and in the first half of the current fiscal the growth in export was 11.5 per cent. However, from October the trend has been sliding and it would be good if the country maintained even the last year’s level, and the target of achieving 20 per cent higher than what was achieved now looks quite difficult. Cotton production has been 31.15 million bales in the 2007-08 cotton seasons and it is estimated that it would set a record level of 32.2 million bales. 

Hopes are now on the proposed 40 integrated textile parks, which are expected to provide employment to 9.08 lakh people and annually produce goods worth Rs 38,155 crore. The Government claims that the rationalisation of fiscal duties made during the last four years has provided a level playing field in all segments resulting in the holistic growth of the industry. Investments in the industry between 2004 and 2008 were Rs 1,08,531 crore which is likely to touch Rs 1,50,600 crore by 2012, thereby generating 17.37 million jobs by 2012. Even as the government has set off measures to mitigate the problems of exporters and the industry, technical textiles have become an “Emerging industry” with the Indian market size of technical textiles likely to jump to $ 12.46 billion by 2010. The Government has designed Centres of Excellence for agrotech, buildtech, meditech and geotech group of technical textiles at an outlay Rs 44 crore and is set to launch a Rs 600 crore Technology Mission on Technical Textiles and create a Development Council for Technical Textiles. The 2008 was a year of surprises for the international clothing and textile sector, many of them unpleasant. It was of course the year when the first global recession since the early 1990s hit the world. But the clothing and textile sector is known for its resilience and innovation and its ability to change direction fast to meet new markets and tastes will be essential in 2009, as the sector starts the long climb out of the current economic slump.