The article discusses how the global textile and clothing industry transitioned from a quota system to a quota-free regime, focusing on the case of India. It explores the challenges and opportunities this new system presents and suggests various strategies at both macro and micro levels to stay competitive. Key points include the historical background of the Multi-Fibre Arrangement, the phases of quota phase-out, the importance of quality raw materials, and the need for modern technology and branding. The paper emphasizes that the speed and effectiveness of implementing these strategies will determine the industry's success in the quota-free environment, with the potential for India to become a leader in the sector.