The Impact on India of Trade Liberalization in the Textiles and Clothing Sector

By Sonali Jain-Chandra, Ananthakrishnan Prasad

November 1, 2005

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Sonali Jain-Chandra, and Ananthakrishnan Prasad. The Impact on India of Trade Liberalization in the Textiles and Clothing Sector, (USA: International Monetary Fund, 2005) accessed December 3, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

We analyze the impact of the elimination of textile and clothing (T&C) quotas in 2005 on India. Our simulations suggest that while Indian exports of T&C will continue to expand in the presence of the safeguards on China, they will be affected adversely once these safeguards are lifted. We argue that India could emerge much stronger and expand its trade in T&C at a much faster pace, if some of the key domestic structural weaknesses are overcome.

Subject: Exports, Imports, Manufacturing, Tariffs, Trade policy

Keywords: ATC quota, Market share, Quota elimination, Textile and clothing export, Textile industry, WP

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2005/214
Stock No:

WPIEA2005214
ISBN:

9781451862331
ISSN:

1018-5941

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