International Monetary Fund has announced in its Selected Issues paper for India states that growth in textile exports to the US and the EU was identical in the post MFA or quotas era.
The paper was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country.
It clearly cites the performance of Indian textiles sector in the period after the elimination of textile quotas.
It states that while "exports from China to the United States in liberalized tariff lines rose at rates in excess of 200 percent, while those to the EU rose by about 80 percent (ref: Ananthakrishnan and Jain-Chandra, 2005)."
It further note: "Through September, Indian exports, in value and volume terms, to the United States grew by a more modest rate of about 20 percent, with similar rates of growth being experienced in the EU market."
Finally, it points out the reasons for India failing to capitalise on the situation by attributing the failure to gain market share in textile exports over the decades to "problems of scale economies, inflexible labor markets, low rates of investment, lack of full duty drawback, and poor infrastructure."
Plannners and Government, will all have to sit up and workout clearly the 'road ahead' in order that India does not miss the bus top progress on one of its prime industrial sector that contributes majorly to its economic progress and provides livelihood to millions.
