The Impact on India of Trade Liberalization in the Textiles and Clothing Sector
39 Pages Posted: 3 Mar 2006
Date Written: November 2005
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.
Keywords: India, Agreement on Textiles and Clothing, MFA, GTAP, CGE models
JEL Classification: F10, F13, F14, F17
Suggested Citation: Suggested Citation