Opportuities for Indian Textile and Apparel Industry in a Boundary-Less World

摘要

The Indian textile and apparel sector is very critical to the Indian economy,as this sector accounts for around 8% of GDP,contributes 14% of the value addition in the manufacturing sector and more than 30% of the export earnings of the country.Besides,it is the single-largest employer with an estimated workforce of 35 million.Industrial liberalization in the domestic economy since 1991 has been followed by changes in the global environment.The abolition of licensing controls on the Indian industry and Uruguay Round negotiations resulting in a ten-year phase out of textile and apparel export quotas under the 'Agreement on Textiles and Clothing'(ATC)posed a great opportunity and challenge to the Indian industry.Through the transitional process embodied in the ATC,this sector was fully integrated into WTO rules by January 1,2005.In particular,the extensive and complex system of bilateral restraints came to an end,and importing countries are no longer able to discriminate between exporters by applying safeguard measures to individual countries.With the opening of textile and apparel markets in post-2004;the trade is set to offer opportunities as well as challenges to various players in world's textile and apparel markets.It can be termed as an opportunity as with the phasing-out of the quota system,restrictions in trade are removed,and wider access to world