Competitiveness of Indian Textile Industry: A Perspective

This paper aimed to measure the export competitiveness of Indian textile Industry after quota elimination. There are many measurements by which the concept of competitiveness can be understood but in this study, a widely recognized measurement „market share‟ has been used as a proxy for export competitiveness. International market share and Revealed comparative advantage has been used as primary tools to measure export competitiveness and the seven determinants of export competitiveness also analyzed with the help of multiple regression and Anova test. The multicollinearity among predictors has been also checked by the researchers. The Standard International Trade Classification (SITC Rev.3) data at two digit level have used for the computation and compilation of market share and RCA. The study found that most of textile exports gone up after the quota elimination with some exceptions and export potential increased or decreased in some cases. The most powerful determinates of export competitiveness were observed as labour productivity and exchange rate.