Economic Viability of Indian Textile Industry: An Empirical Analysis

In this paper, an attempt has been made to investigate the concept of economic viability of Indian textile and clothing industry through the some ratios designed by the authors. The study compares the period which is significant in the textile world as Pre MFA period and Post MFA period. This period is significant in the sense that since 1 Jan. 2005, the world is open for textile trade without any quantitative restrictions. The no. of studies are devoted to measure the competitiveness of this industry but no study was found to measure the economic viability of this industry. This is noteworthy aspect that economic viability and competitiveness cannot be separated from each other and if the industry has poor economic viability, the expectation of better competitive strength is just a dream. The study tried to reveals that what is economic viability is? How can it be measured? and is there any significant difference in economic viability of this industry between pre and post MFA period. The finding showed although some ratios showed positive trends, the overall economic viability of Indian textile and clothing industry is falling down.