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

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Author Info
A. Prasad
Sonali Jain-Chandra
Abstract

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.

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Paper provided by International Monetary Fund in its series IMF Working Papers with number 05/214.

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Length: 39 pages
Date of creation: 02 Dec 2005
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Handle: RePEc:imf:imfwpa:05/214

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Keywords: Trade liberalization ; India ; Exports ; Economic models ;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Hummels, David, 2001. "Time as a Trade Barrier," GTAP Working Papers 1152, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University. [Downloadable!]
  2. Sandra A. Rivera & Valerie Cerra & Sweta Chaman Saxena, 2005. "Crouching Tiger, Hidden Dragon: What are the Consequences of China's WTO Entry for India's Trade," IMF Working Papers 05/101, International Monetary Fund. [Downloadable!]
    Other versions:
  3. Joseph F. Francois & Hans H. Glismann & Dean Spinanger, 2000. "The Cost of EU Trade Protection in Textiles and Clothing," Kiel Working Papers 997, Kiel Institute for the World Economy. [Downloadable!]
  4. Trela, Irene & Whalley, John, 1990. "Global Effects of Developed Country Trade Restrictions on Textiles and Apparel," Economic Journal, Royal Economic Society, vol. 100(403), pages 1190-1205, December. [Downloadable!] (restricted)
  5. Richard Avisse & Michel Fouquin, 2001. "Textiles and Clothing: the End of Discriminatory Protection," La Lettre du CEPII, CEPII research center, issue 198, February. [Downloadable!]
  6. Kathuria, Sanjay & Martin, Will & Bhardwaj, Anjali, 2001. "Implications for South Asian countries for abolishing the Multifibre Arrangement," Policy Research Working Paper Series 2721, The World Bank. [Downloadable!]
  7. Yongzheng Yang & Montfort Mlachila, 2004. "The End of Textiles Quotas: A Case Study of the Impact on Bangladesh," IMF Working Papers 04/108, International Monetary Fund. [Downloadable!]
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Cited by:
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  1. Geoffrey N. Keim & Beth Anne Wilson, 2007. "India's future: it's about jobs," International Finance Discussion Papers 913, Board of Governors of the Federal Reserve System (U.S.). [Downloadable!]
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