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    Trade, Trade Agreements and Subsidies: The Case of the Indian Apparel Industry

    Mukherjee, Arpita; Paul, Anusree; Sarma, Angana Parashar; Sinha, Soham | October 2018
    Abstract
    India has a large positive trade balance in the apparel sector and is ranked among the top 10 apparel exporting countries. However, of late, its export growth has stagnated and the country is facing competition in key export markets such as the United States and the European Union from other developing countries such as China, Vietnam and Bangladesh. Apparel manufacturers and exporters face two major challenges. First, India’s export promotion schemes have been challenged under the World Trade Organization’s Agreement on Subsidies and Countervailing Measures and second, India is negotiating mega-regional trade agreements such as the Regional Comprehensive Economic Partnership, with countries such as China and Vietnam, which may lead to a rise in imports without a corresponding an increase in market access for exporters. Given this scenario, this paper presents India’s trade in apparel products by sub-sectors and key markets, and analyses its trade competitiveness across different sub-sectors. It examines the impact of trade agreements and receiving country policies on India’s apparel exports. It also analyses the issues faced by the apparel industry in India and compares India’s position vis-à-vis other apparel exporting countries, in terms of factors that can affect export competitiveness and efficiency. It tries to investigate the impact of subsidies prohibited under the World Trade Organization’s Agreement on Subsidies and Countervailing Measures on apparel exports from India. Based on this, it makes recommendations on how to design a comprehensive trade policy that will (a) enhance the export competitiveness of this sector (b) be WTO compliant and (c) ensure greater market access for Indian apparel exporters after trade agreements are signed.
    Citation
    Mukherjee, Arpita; Paul, Anusree; Sarma, Angana Parashar; Sinha, Soham. 2018. Trade, Trade Agreements and Subsidies: The Case of the Indian Apparel Industry. © Indian Council for Research on International Economic Relations. http://hdl.handle.net/11540/8898.
    Keywords
    |Interindustry Trade
    Industrial Policy
    Industrial Investment
    Industrial Development
    Small Scale Industry
    Medium Scale Industry
    Local Industry
    Transport Infrastructure
    Trade regulations
    Telecommunications Industry
    Computers
    Trade data interchange
    Access to markets
    E-Commerce
    Textile Industry
    Rayon Industry
    Cotton Industry
    Clothing Industry
    Trade
    Merchandise Trade
    Weaving
    Textiles
    Textile Workers
    Wool Industry
    Silk Industry
    Small Scale Industry
    Medium Scale Industry
    Local Industry
    Export Oriented Industries
    Shoe Industry
    Clothing
    Hosiery Industry
    Fur Industry
    Leather Industry
    Import volume
    Export volume
    Imports
    Exports
    Work clothes industry
    Women's clothing industry
    Children's clothing industry
    Uniforms industry
    Underwear industry
    T-shirt industry
    Sweater industry
    Suspender industry
    Sport clothes industry
    Sleepwear industry
    Shirt industry
    Shawl industry
    Men's clothing industry
    Leather garments industry
    Textile industry and fabrics
    Fabrics
    Cloth
    Wool-growing industry
    Garment industry
    Apparel industry
    Belt industry
    Glove industry
    Footwear industry
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/8898
    Metadata
    Show full item record
    Thumbnail
    Working_Paper_365.pdf (1.440Mb)
    Author
    Mukherjee, Arpita
    Paul, Anusree
    Sarma, Angana Parashar
    Sinha, Soham
    Theme
    Industry
    Trade

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    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise