THE INDIAN TEXTILE SCENARIO UNDER THE NEW QUOTA FREE REGIME

THE INDIAN TEXTILE SCENARIO UNDER THE NEW QUOTA FREE REGIME WTO has terminated the Agreement on Textiles and Clothing (ATC) and all restrictions there under on January 1, 2005. It means that trade in textile and clothing products is no longer subject to quotas under a special regime outside normal WTO/GATT rules but is now governed by the general rules and disciplines embodied in the multilateral trading system. Hence, this paper shall review the experience with implementation of the WTO-ATC and also look at the possible implications of the ATC in terms of future performance of India's textile sector. Therefore the thesis will be the impact of this on India’s textile exports in terms of volume and value and also evaluate India’s standing in comparison with China. 1. Introduction • Brief Background and history of the Indian textile industry • The current situation and problems facing the industry • Relevance and importance • Industry from a practical view 2. Objectives of study We believe that the Indian Textile Industry is moving into a sweet spot. It occupies a unique niche in the global market since it parallels China's strengths. Moreover, it is witnessing a fundamental shift, driven by a multitude of global and domestic factors. We have a positive view on the sector. The objective of the project is to review the experience with implementation of the WTO-ATC and also look at the possible implications of the ATC in terms of future performance of India's apparels sector. Because Indian textile and clothing has a significant presence in the world textile economy by virtue of its contribution to world textile capacity and world production of textile fibre/yarn, our study would throw some light and give a perceptible view and a comparative analysis with the Chinese textile industry. With the aforementioned main objective in mind, we would pigeonhole and break it down to the below mentioned objectives: • To bring out the importance of India’s textile industry in GDP, Employment, Exports and Manufacturing. • To briefly study the rules and the regimen governing the textile trade during 1974 – 2005. • To study and analyze the impact of the quota free regime on the Indian textile industry especially apparels. • To study the global textile industry, the main players and the role that India and China can play and why? • To prepare a comparative analyses of Indian and Chinese Textile industry. (In terms of parameters such as No of manufacturers, average capacity of each player, fragmentation, use of technology, access to raw material, pricing etc…) • To suggest strategies for countering competition. Hence, stated above i would want this paper or project to be completed soon as possible