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Opening India’s Garments Sector to South Asia

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  • Saon Ray
  • Nisha Taneja
  • Neetika Kaushal
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Abstract

This paper examines the competitiveness of the Indian garments industry vis-à -vis the other South Asian countries Bangladesh, Pakistan and Sri Lanka. Under the SAFTA agreement, many of the garment items were on India’s sensitive lists and did not face concessional treatment. Though many of the items have been subsequently removed from India’s sensitive list, the imports of these items to India have not increased significantly. The paper uses secondary data to examine the revealed comparative advantage (RCA) of the four South Asian countries and finds that they are not competing internationally in the same segment of the garments sector. The imports of India in garments from each of these countries are concentrated in a few products. The paper uses a primary survey on five garments clusters in India to understand the nature of imports of garments from these countries and the effect of removal of these items from India’s sensitive list on its imports. URL:[http://fgks.in/IndexServer/tifac/article/143.pdf].

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:4461.

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Date of creation: Sep 2011
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Handle: RePEc:ess:wpaper:id:4461

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Related research

Keywords: Indian garments industry; south asian; Bangladesh; Pakistan; Sri Lanka; SAFTA; imports; revealed comparative advantage (RCA); garment clusters; Competitiveness; competition; Indian manufactures; econometric exercise; firms; regional business; social networks;

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  1. Roberta Rabellotti & Hubert Schmitz, 1999. "The Internal Heterogeneity of Industrial Districts in Italy, Brazil and Mexico," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 33(2), pages 97-108.
  2. Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, Elsevier, vol. 27(9), pages 1503-1514, September.
  3. Khalid Nadvi, 1999. "The cutting Edge: Collective efficiency and international competitiveness in Pakistan," Oxford Development Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 27(1), pages 81-107.
  4. Mercedes Delgado & Michael E. Porter & Scott Stern, 2012. "Clusters, Convergence, and Economic Performance," NBER Working Papers, National Bureau of Economic Research, Inc 18250, National Bureau of Economic Research, Inc.
  5. Antonio Ciccone & Robert E. Hall, 1993. "Productivity and the Density of Economic Activity," NBER Working Papers, National Bureau of Economic Research, Inc 4313, National Bureau of Economic Research, Inc.
  6. Andrés Rodríguez-Clare, 2005. "Clusters and Comparative Advantage: Implications for Industrial Policy," Research Department Publications, Inter-American Development Bank, Research Department 4391, Inter-American Development Bank, Research Department.
  7. Tendler, Judith & Amorim, Monica Alves, 1996. "Small firms and their helpers: Lessons on demand," World Development, Elsevier, Elsevier, vol. 24(3), pages 407-426, March.
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