The garment industry in developing countries is labour intensive, low wage industry and it offers entry-level jobs for unskilled labour. It is in the process of restructuring and consolidation to face the competition in the Post quota regime since 2005 January. This study focuses on the impact of MFA quota phase out on India and particularly on workers. It tries to capture the various trends that are emerging in the Indian textile and clothing industry and in the world of labour. More specifically the study intends to provide the facts of hard realities being faced by the workers in these production units in the year 2005 and in early 2006.