The Indian government has banned the transfer of readymade garment for exports to the USA, the EU and Canada.

The order was given by minister of textiles Shankersinh Vaghela to prevent quota hoarding and the trading of quotas at unnecessarily high premiums.

Under new regulations, exporters can only use quotas for their own requirements.

Vaghela has also introduced periodic reviews of India's quotas and the distribution of extra capacity for genuine exporters.