Appreciation of the yuan, less plentiful cotton raw material and rising wages are all factors in a Chinese textile industry slump. The General Administration of Customs of China reported that textile and garment exports fell 11 percent in the first half of 2008, and China posted negative growth in U.S. exports for the first time in more than a decade. Sri Lanka and Bangladesh textile sectors continue to struggle with an economic downturn, labor unrest and rising food prices. “China’s pain is India’s gain,” says D.K. Nair, chairman of the Confederation of Indian Textile Industries (CITI), but warns that rising costs of raw material and energy will check big gains for India’s textile sector.