The Indian Textile and Clothing Industry

Kar, Mausumi

doi:10.1007/978-81-322-2370-2

Cited by 6 publications

(7 citation statements)

References 8 publications

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“…Both countries adopted ISI strategies that initially resulted in thriving textile manufacturing sectors. The textile sector represented the largest employment sector after agriculture in India (Kar 2015) and the largest formal sector employer after government in Nigeria. In 1984, when the Nigerian textile industry was at its peak, there were 175 textile factories, and the sector accounted for 22 per cent of employment and 15 per cent of manufacturing value (Muhammad et al 2018;Onyeiwu 1997).…”

Section: Overview Of Textile Manufacturing History In India and Nigeriamentioning

confidence: 99%

“…A Ministry of Textiles was established in 1983 to spearhead sectoral reform that initially focused on deregulating the sector, and then from 1991, a trade liberalisation programme -emphasising export promotion more than import liberalisation -was progressively embarked upon. Textile exports to the rest of the world rose (Ghosh 2000;Roy 1998;Kar 2015). Rodrik and Subramanian's (2005) analysis of Indian growth in the 1990s emphasises how it was the bases laid under preceding decades of ISI that enabled manufacturing growth in the 1990s.…”

Section: Overview Of Textile Manufacturing History In India and Nigeriamentioning

confidence: 99%

“…The pre-existence of significant merchant classes probably facilitated the earlier emergence of local capitalists in India (Roy 2013). The first modern textile mill was established in 1854 by a local entrepreneur, and by 1875 another fifty mills had opened (Kar 2015). Nigeria's first modern mill, Kaduna Textile Mill, opened in 1956, a full century after India.…”

Section: Overview Of Textile Manufacturing History In India and Nigeriamentioning

confidence: 99%

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Why Nigerian agbada fabric is (often) imported, while Indian sari fabric is local: a comparative history of textile manufacturing

Kamara¹

2023

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In the 1980s, both India and Nigeria had textile sectors that satisfied their large domestic demand. Today, however, Nigeria imports most of its textiles, including identity-imbued fabrics, while India is a major textiles producer. This article proposes three explanatory factors for this divergence based on a review of secondary sources. From independence, Indian policy placed greater emphasis on supporting craft and small-scale textile production, whereas the craft sector in Nigeria was neglected. Nigeria’s indigenisation of industry strategies failed to achieve endogenous processes in the textile industry, whereas the Indian textile sector was characterised by high Indian ownership and endogenous skills and technologies that rendered the sector resilient to shocks. Lastly, while both countries adopted import-substituting industrialisation strategies, the Nigerian textile sector benefited from little trade protection as smuggling greatly undermined the protection in place.

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Section: Overview Of Textile Manufacturing History In India and Nigeriamentioning

confidence: 99%

Section: Overview Of Textile Manufacturing History In India and Nigeriamentioning

confidence: 99%

Section: Overview Of Textile Manufacturing History In India and Nigeriamentioning

confidence: 99%

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Why Nigerian agbada fabric is (often) imported, while Indian sari fabric is local: a comparative history of textile manufacturing

Kamara¹

2023

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“…Recently, however, an India‐ASEAN FTA was signed in Bangkok on August 13, 2009 and it came into effect from January 1, 2010. Paradoxically, these agreements are not so significant for India's attempts at expanding the T&C exports to such destinations, because all the above‐mentioned partner countries are competitors for India with regard to T&C trade worldwide (Kar ). Nevertheless, it is of note that India is the largest economy in the South Asian region accounting for more than 80% of South Asia's gross domestic product (GDP).…”

Section: Perspectivesmentioning

confidence: 99%

Economic Integration and Trade Protection: Policy Issues for South Asian Countries

Kar¹

2017

Contemporary Economic Policy

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This article shows that economic integration acts as a viable instrument of protection for individual countries, when benefits of discriminatory protectionist policies like the multifiber arrangement are withdrawn. Using United Nations Conference on Trade and Development statistics for 1995–2013 and applying an extended version of the augmented gravity model, we show that the formation of a trade bloc like the South Asian Free Trade Area unambiguously promotes member countries' exports of textile and clothing at both intra‐bloc and extra‐bloc levels. The expansion of south‐south trade is facilitated by the growing intraregional trade in intermediate goods. The creation of a regional value chain can shield the smaller countries in the context of enhanced global competition. (JEL F14, F15, F13)

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“…Since 1 January 1974, the adoption of MFA exempted the textile and garment trade from the GATT disciplines, allowing developed countries to impose bilateral quotas on imports of various textile and garment product categories from developing countries. The elimination of MFA quotas were expected to create a new environment by vastly increasing the scope for competitive and efficient developing countries like India and China to expand their exports and thereby creating employment in this sector vis‐à‐vis less competitive countries like Indonesia, Thailand (see Kar and Kar, ; Kar, ). It is observed that the competitiveness effect is the most dominant factor in the observed transitions.…”

Section: Introductionmentioning

confidence: 99%

Multi Fibre Arrangement and Wage Inequality: Firm and State‐level Evidence from India and a Theoretical Model

Kar¹,

Kar

2016

World Economy

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The phased elimination of Multi Fibre Arrangements (MFA) for textile and apparel has been one of the most compelling trade policy reforms that removed a system of bilateral quotas. The reform brought in significant changes in the industrial structures for exporters from the south, including India. Has the labour‐intensive high‐employment textile and clothing industry in India benefited from this global move towards freer trade? For India, the industry has witnessed unprecedented market concentration of export‐oriented firms. Firm‐level empirical estimate illustrates that workers in the export‐oriented firms in India are adversely affected due to withdrawal of quota. Accumulation of net fixed assets and growth of sales impart positive impact on firm‐level wages that cannot outweigh negative impact due to fall in exports. We also find negative impact of profit on aggregate wage bill for the industry with firms spread over 11 major states in India. We show that the mean deviation of industry‐level wage is positively and significantly associated with mean deviation of the number of factories at the state level and negatively with profit. Finally, a brief analytical exercise obtains conditions under which joint withdrawal of quota and import tariff could raise the aggregate labour income in developing countries, in general.

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The Indian Textile and Clothing Industry

Cited by 6 publications

References 8 publications

Why Nigerian agbada fabric is (often) imported, while Indian sari fabric is local: a comparative history of textile manufacturing

Why Nigerian agbada fabric is (often) imported, while Indian sari fabric is local: a comparative history of textile manufacturing

Economic Integration and Trade Protection: Policy Issues for South Asian Countries

Multi Fibre Arrangement and Wage Inequality: Firm and State‐level Evidence from India and a Theoretical Model

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