India's Textiles & Clothing Trade

Abstract

In this paper we examine the textiles and clothing export performance of India and China during the ATC and post-MFA period, with focus on the two leading consumer markets, viz. the European Union (EU) and USA. We evaluate the proposition that in comparison with China, India has not been able to gain significantly in these markets from the quota-removal on textiles and clothing, and that India has continued to be a smaller player in the world market for textiles and clothing as compared to China. Further, we analyze the implications of the trade trends of the US and EU textiles and clothing markets for the future textiles and clothing export success of India. Besides, we explore the possible strategic options available to India to become a major player in the leading export markets of textiles and clothing despite the competition and competitors. The results reported in the paper support our proposition that India&s gains in textiles and clothing trade in the ATC and post-MFA era have not been commensurate with its hopes. The paper suggests various reasons for this unsatisfactory outcome and outlines some measures to ensure better gains for India in future.