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Opening India’s Garments Sector to South Asia

Author

Listed:
  • Saon Ray

    ()

  • Nisha Taneja

    ()

  • Neetika Kaushal

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].

Suggested Citation

  • Saon Ray & Nisha Taneja & Neetika Kaushal, 2011. "Opening India’s Garments Sector to South Asia," Working Papers id:4461, eSocialSciences.
  • Handle: RePEc:ess:wpaper:id:4461
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    References listed on IDEAS

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    1. Ciccone, Antonio & Hall, Robert E, 1996. "Productivity and the Density of Economic Activity," American Economic Review, American Economic Association, vol. 86(1), pages 54-70, March.
    2. Delgado, Mercedes & Porter, Michael E. & Stern, Scott, 2014. "Clusters, convergence, and economic performance," Research Policy, Elsevier, vol. 43(10), pages 1785-1799.
    3. Khalid Nadvi, 1999. "The cutting Edge: Collective efficiency and international competitiveness in Pakistan," Oxford Development Studies, Taylor & Francis Journals, vol. 27(1), pages 81-107.
    4. Schmitz, Hubert & Nadvi, Khalid, 1999. "Clustering and Industrialization: Introduction," World Development, Elsevier, vol. 27(9), pages 1503-1514, September.
    5. Tendler, Judith & Amorim, Monica Alves, 1996. "Small firms and their helpers: Lessons on demand," World Development, Elsevier, vol. 24(3), pages 407-426, March.
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