Abstract
As per the provisions of the Agreement on Textiles and Clothing (ATC) currently in vogue, various quota restrictions imposed by the developed countries on the textiles and garment exports will be phased out by the year 2005. The phase-out process has already commenced and with the successive removal of quota restrictions, world trade in garments shall become very competitive. Based on a survey of the export firms and opinion of a few experts, the paper delves into a competitiveness analysis of Indian garment export firms. Though the Indian firms hold the perception that they are competitive enough to withstand the emerging competition, they are found to be lacking in respect of all the competitiveness dimensions identified through the use of factor analysis. The paper also provides suggestions for improving the export competitiveness in future.
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