Impact of the ATC on the performance and productivity of Indian apparel manufacturing

Dhwani Gambhir

International Journal of Development Issues, 2022, vol. 21, issue 3, 336-346

Abstract: Purpose - This paper aims to study the productivity growth in the Indian apparel industry in aggregate over the period 1995–2015 and compare the performance of the Indian apparel industry during the decade of the Agreement on Textiles and Clothing (ATC) and the decade post its expiry. Design/methodology/approach - The aggregate productivity performance has been studied using the technique of growth accounting and the translog index. A comparison of industry performance has also been made by analysing data. The data has been collated from Annual Survey of Industries reports, CMIE Economic Outlook and CMIE Industry Outlook databases. Findings - The apparel industry has seen significant growth in terms of all industry variables and exports. However, the growth in exports is much lower than the growth in other industry variables related to output and input. While there is productivity improvement in aggregate over the study period, the quantum is low. Total factor productivity growth is positive and higher for the period post the ATC. Originality/value - To the best of the author’s knowledge, there has been no such recent study comparing performance and productivity in Indian apparel manufacturing during and after the expiry of the ATC.

Keywords: India; WTO; Total factor productivity; Apparel manufacturing; ATC; Growth accounting (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijdipp:ijdi-02-2022-0045

DOI: 10.1108/IJDI-02-2022-0045

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