The threat from China, if at all, is only in the short term.
China has certain advantages, and India has certain advantages.
India manufactures a wide range of products, and can attain immense competitiveness in these products. As against this, China's textile industry specialises only in a few products for the export market. I feel the Chinese threat is more of a hype on the part of the Indian industry, a short-sighted way of looking at things. Of course, the industry and the government will have to do certain things to make the industry stronger and more competitive, viz, internationalise costs, remove fiscal and tax distortions, reduce manufacturing costs, strengthen the existing raw material base. These are well-known factors which the industry has heeded to.