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
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