A comparative study of Indian and Chinese textile and clothing exports in post-MFA environment

Abstract

Purpose This paper aims to examine and compare the export performance and competitiveness of Indian and Chinese textile and clothing industry in post-multifibre arrangement (MFA) era. Design/methodology/approach Balassa’s revealed comparative advantage Index is used to assess the competitiveness of Indian and Chinese textile and clothing exports. Findings The results indicate that China’s textiles and garments sector holds a greater proportion of the global market compared with India. India has a robust comparative advantage in silk, carpets and cotton post-MFA. Vegetable textile fibers, paper yarn and woven fabrics of paper yarn are also competitive. China had a strong comparative advantage in silk and fabrics; special woven fabrics, tafted textile fabrics, lace, tapestries, trimmings and embroidery in 2005. China also recorded comparative advantage in silk, man-made filaments: strip and the like of man-made textile materials, fabrics; special woven fabrics, tafted textile fabrics, lace, tapestries, trimmings and embroidery and fabrics; knitted or crocheted in 2021. Research limitations/implications This study’s results and recommendations could assist the Indian and Chinese Governments develop policies to upgrade their garment industries. Originality/value Though vast literature reviews are available for textile and apparel export performance in India and China separately, there are few studies on comparisons. This study is a significant attempt to evaluate India and China’s competitiveness in the global market.