Trade and Development Review, Vol 11 (2018)

Panel Data Analysis of Indian Textile Exports in the Post Quota Period

Greeshma Manoj, S Muraleedharan


The system of bilateral quotas which had governed the international trade in textiles and clothing under the Multi Fibre Agreement came to an end and has been replaced by the Agreement on Textiles and Clothing (ATC) from January 1, 2005. Since these quota restrictions were more restrictive on cotton textile exports, it was widely believed that India would be major beneficiary in the post quota period. This study focuses upon the post MFA implications on the exports of textiles from India. Panel data analysis has been used to analyse the impact of quota removal on Indian textile exports. The study found that quota removal had a significant impact on the export of readymade garments and manmade textile exports and an insignificant impact on the export of cotton textiles.

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