85 million people work in India's textile industry
This garment exporter predicts more factory closures
Middle-class shoppers are spending more cautiously
India has been one of the world's best-performing economies in recent years, but now it is beginning to slow down just a little, because of the global financial crisis.
The government released figures on 12th December which showed that for the first time in a decade, industrial production had registered negative growth.
One of the worst-affected industries is the textile industry.
As the BBC's Sanjoy Majumder discovered, with garment sales in the United States drying up, suppliers in India are beginning to feel the pinch.
Listen Listen to his report (3 mins 22 secs)
The Indian government has recently unveiled a $4bn stimulus package for the economy as a whole, but also aimed specifically at small and medium-sized industry.
There has also been a cut in interest rates.
Has the government done enough?
Listen Listen to economic analyst, Paranjoy Guha Thakurta (3 mins 50 secs)
To find out how all this is affecting India's young people, Sanjoy spoke to business management student, Karan Rajpal and Megha Jangid, who works at a TV production house.
Sanjoy asked Karan first whether he is worried about his job prospects.
Listen Listen to their discussion (3 mins 51 secs)
First broadcast 16 December 2008
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