The country needs to relax labour laws and enhance incentives in order to become the preferred sourcing destination in textiles sector, a report submitted to the government said. The study, commissioned by the Textiles Ministry and conducted by the Indian Institute of Foreign Trade, suggested strengthening the eco-system for textile exports, integrating fragmented textile value chain and investing in skill upgradation as measures needed to boost India’s sourcing potential. “Outdated labour laws within the textile sector hamper India from becoming labour competitive. India is not perceived to be a low cost labour destination,” the report said. The incentives offered in India are far below that offered in China, thereby making Indian products lose out on being price competitive in the global markets, it further suggested. The report also called for innovation in terms of new products, new business models and collaborations; digitisation of entire supply chain from product development to delivery and ensuring compliances related to quality and legal issues, so that India is recognised for producing world class products. “IIFT also believes that key to success is encouraging product as well as market diversification for varied textiles & apparel products and clear positioning of Indian Textiles in international markets,” it said.