Determinants of FTAs utilization among Indian textile and clothing exporters: an exploratory study

Parul Bajaj and Anuj Sharma

IIM Ranchi Journal of Management Studies, 2025, vol. 4, issue 2, 151-182

Abstract: Purpose Currently, India has forayed into signing numerous trade agreements with heightened activity being witnessed in recent times. Although government officials anticipate that free trade agreements (FTAs) may potentially enhance exports, numerous exporting firms, particularly the smaller firms remain unaware of the benefits of preferential tariffs. To understand the perceptions relating to the utility of these trade agreements by India’s textile and garment exporter community.Design/methodology/approach To accomplish this aim, we conducted in-depth interviews with 16 Indian exporters and two policymakers in the textile and clothing sector. Further, themes and subthemes were obtained using qualitative content analysis.Findings The results reveal a lack of exporters’ knowledge on the use of trade agreements and their complementary nature as a major impediment to the trade agreements’ usage, the administrative costs are considered high, especially by the smaller enterprises. Further, more public support is demanded by the exporters in the employment of trade agreements.Practical implications To ensure the success of FTAs, coordinated government efforts in the sector are essential to boost production and, consequently, enhance trade. The study offers vital policy implications for making the FTA model successful for the stakeholders as well as meeting the government’s economic objectives.Originality/value This is the first study, specifically targeting India’s textile and garment exporters to explore their perceptions of trade agreements. This study offers a novel understanding of how trade agreements are perceived and utilized at the grassroots level of international trade.

Keywords: Exporter perceptions; Textile and clothing; Free trade agreement; Awareness; Utilization; India; Qualitative survey; Rules of origin; Preferential trade (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:irjmsp:irjms-08-2024-0085

DOI: 10.1108/IRJMS-08-2024-0085

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