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

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  • Ms. Sonali Jain-Chandra
  • Mr. Ananthakrishnan Prasad

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.

Suggested Citation

  • Ms. Sonali Jain-Chandra & Mr. Ananthakrishnan Prasad, 2005. "The Impact on India of Trade Liberalization in the Textiles and Clothing Sector," IMF Working Papers 2005/214, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2005/214
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    References listed on IDEAS

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    1. David L. Hummels & Georg Schaur, 2013. "Time as a Trade Barrier," American Economic Review, American Economic Association, vol. 103(7), pages 2935-2959, December.
    2. International Monetary Fund, 2005. "Crouching Tiger, Hidden Dragon: What Are the Consequences of China’s WTO Entry for India’s Trade?," IMF Working Papers 2005/101, International Monetary Fund.
    3. Richard Avisse & Michel Fouquin, 2001. "Textiles and Clothing: the End of Discriminatory Protection," La Lettre du CEPII, CEPII research center, issue 198.
    4. Cerra, Valerie & Rivera, Sandra A. & Saxena, Sweta Chaman, 2004. "Crouching Tiger, Hidden Dragon: What are the Consequences of China’s WTO Entry for India’s Trade?," Conference papers 331297, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    5. Mr. Montfort Mlachila & Yongzheng Yang, 2004. "The End of Textiles Quotas: A Case Study of the Impacton Bangladesh," IMF Working Papers 2004/108, International Monetary Fund.
    6. 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.
    7. Spinanger, Dean & Francois, Joseph F. & Glismann, Hans H., 2000. "The Cost of EU Trade Protection in Textiles and Clothing," Kiel Working Papers 997, Kiel Institute for the World Economy (IfW Kiel).
    8. Hummels, David, 2001. "Time As A Trade Barrier," Working papers 28701, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    9. 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.
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    Cited by:

    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.).
    2. De Cian, Enrica, 2008. "Trade and Environment revisited: Assessing the Effects of International Technology Spillovers," Conference papers 331800, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Matthew McCartney, 2014. "The Political Economy of Industrial Policy: A Comparative Study of the Textiles Industry in Pakistan," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(Special E), pages 105-134, September.
    4. Edmund Amann & Barry Lau & Frederick Nixson, 2009. "Did China Hurt the Textiles and Clothing Exports of Other Asian Economies, 1990-2005?," Oxford Development Studies, Taylor & Francis Journals, vol. 37(4), pages 333-362.

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