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In India, the current apparel export quota policy will expire in December 1999, and a debate is on about the shape of the next policy, which shall take effect from the year 2000 onward, and may last up to 2004. Quotas are at least expected to be abolished in 2005. The Apparel Export Promotion Council is in favor of a simple two tier policy, comprising 85 % allotment on the basis of past performance and 15 % for newcomers. The present policy has allocations for those investing stipulated amounts in plant and machinery and export to non-quota markets. Opinions are divided sharply within the industry. There are many who favor continuation of the existing policy. The government is not bound by AEPC's recommandations, and the new policy may be different from what the AEPC has suggested. Meanwhile, apparel exports in January-May 1999 grew by 11.56 % to USD 2,367.7 million and 9.04 % to 65.15 million units in quantity. The trend from May on is being viewed as satisfactory. In the article, some other problems of the Indian textile industry are also discussed as are the general economic situation, the development of cotton prices, the effects of the USD 6 billion Technology Upgradation Fund, high-pressure high-temperature jet dyeing machine vessel bursts the number of which has risen to as many as 25 per year, patents in textile machinery, and the development of Indian polyester capacities.