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 industries 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, tufted 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, tufted 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.

Keywords

• Export performance
• Competitiveness
• MFA
• India
• China