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

39 Pages Posted: 3 Mar 2006

See all articles by A. Prasad

A. Prasad

International Monetary Fund (IMF)

Sonali Jain-Chandra

Columbia University - Graduate School of Arts and Sciences - Department of Economics

Date Written: November 2005

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.

Keywords: India, Agreement on Textiles and Clothing, MFA, GTAP, CGE models

JEL Classification: F10, F13, F14, F17

Suggested Citation

Prasad, Ananthakrishnan and Jain-Chandra, Sonali, The Impact on India of Trade Liberalization in the Textiles and Clothing Sector (November 2005). IMF Working Paper, Vol. , pp. 1-39, 2005. Available at SSRN: https://ssrn.com/abstract=888083

Ananthakrishnan Prasad (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Sonali Jain-Chandra

Columbia University - Graduate School of Arts and Sciences - Department of Economics ( email )

420 W. 118th Street
New York, NY 10027
United States

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