Export Similarity Index as a Barometer of Indian Textiles Exports Competitiveness

Abstract

This study examines the performance of Indian textiles exports in a relative and holistic framework. Given the pre-eminence of the sector for India’s exports, a comparative study on its performance is called for. For the purpose, India’s key competitors in the export product categories are deduced. The primary objective of this study is to critically assess the Indian textiles exports performance using the export similarity index (ESI). Overall, the study arrives at some important conclusions with regard to this objective using the ESI for the textiles product codes HS 56–60 for the period 2013–2017. In view of the much-needed scope for improvement in the Indian textiles exports performance, there is a need to evolve a comprehensive export strategy for the sector, involving both firm- and state-led efforts so as to have a beneficent impact on exports and the overall Indian economy. JEL Codes: F10, F14, L67