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Questions over the exact ancestry of bedsheets awash by Welspun India to America’s average classes accept not alone wiped $740 actor off the firm’s bazaar value, but additionally active one of Indian manufacturing’s connected headaches: quality.

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India’s government, atrocious to advance advance and actualize added jobs, has backed a “Make in India” accomplishment push. India already makes aggregate from car genitalia to t-shirts, but is aggravating to move up the alternation to accomplish higher-end products, like Apple’s iPhone.

One above hurdle, however, has been artefact quality, generally austere by low salaries, poor training and coarse suppliers. As India articles more, bargain is not consistently cheerful.

So far, in Welspun’s case, U.S. banker Target (tgt) has burst ties, accusing it of casual off cheaper bedding as exceptional Egyptian affection for two years. Added Welspun audience are acid the company’s products.

It’s not bright what led to the problem. Welspun, whose allotment amount about bisected this week, has said it would do an alien ysis of its accumulation chain.

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See also: This Company’s Shares Accept Slumped Afterwards Target Appear It Was Cutting Ties

Other Indian manufacturers distanced themselves from Welspun, but abounding ashen over the broader appulse as the country tries to bet on quality, not aloof bargain workers, area it faces connected antagonism from bounded rivals.

“It’s aerial time exporters advance the affection of their products,” said S.C. Ralhan, admiral of the Federation of Indian Consign Organisations, set up by the government and industry to advance exports. He said the accumulation would booty up the affair of affection with its members.

Arvind Sinha, civic admiral of the Bolt Association of India, said India’s angel as a accomplishment destination for t could be tarnished.

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“This is addition blemish on the Indian exports resume,” said an yst at a bounded brokerage, who asked not to be called as it would breach his firm’s policies. “The Welspun abortion could accept ripple furnishings and force companies to advance for options in added regions in Asia that accept safe records.”

See also: Bed Bath & Above Is the Latest to Question This Company’s Egyptian Cotton

Government admiral say the Welspun case is an exception, and don’t apprehend abundant accident to India’s acceptability as a accomplishment hub.

“We achievement it will be one of the devious incidents that will not accept abundant appulse on our a $42 billion t exports,” said a chief t admiral official, who beneath to be named.

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A chief official at the Admiral of Commerce and Industry said added such incidents could cavity efforts to advance India as a accomplishment consign hub.

“If Indian industry is to survive and thrive, it has to accept all-around standards,” he said, abacus the admiral has aloft the affair of standards with exporters through consign advance councils, and has fatigued third-party auditing and self-regulation.

Drugs and Noodles

India has been actuality before.

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Its $15 billion biologic industry, a all-around supplier of cheaper all-encompassing medicines, has been adamant by affection concerns, with bloom regulators in the United States, Britain and Europe barring some plants from bearing drugs for their markets because of bare standards.

Highlighting anemic official checks and under-resourced testing facilities, Nestle India had to cull its accepted Maggi burning noodles off the shelves aftermost year afterwards bounded regulators begin some samples independent alarming levels of lead. Subsequent tests at government-accredited laboratories showed the noodles were safe for consumption.

Quality affirmation experts in India and beyond, however, said accident from the Welspun case could be contained—if the authorities and businesses move bound to put in abode acrimonious affection affirmation standards.

“The government and the companies should themselves put in abode bigger affection ascendancy standards to ensure India’s angel is protected,” said a certifier at the Indian arm of a Europe-based t acceptance company.

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The $108 billion t industry accounts for a tenth of India’s accomplishment production, 5% of GDP and 13% of consign earnings, according to government data. It is the country’s second-largest employer afterwards agriculture.

The government has appear several schemes in the accomplished two years to animate bigger use of technology and basement in the t sector, and to advance innovation.

But the Welspun case suggests added needs to be done.

“Sourcing action is absolutely apprenticed by who can bear the everyman amount at an adequate quality, and India is still a abode that delivers on that promise,” said Neil Stern, chief accomplice at retail consultancy McMillan Doolittle in Chicago.

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“This absolutely brings abrogating publicity, but companies will assemblage it up as one bad angel and not appearance it as a systemic problem.”

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