The clothing industry in India dwells an important pace in the economy of country and supplies substantially to earnings of export. The clothing industry is a second largest provider of employment in India after agriculture. Clothing makes up around 17% of entire exports. It is also a matter of pride for the clothing export industry as the highest net earner for foreign exchange for developing countries (Rudolf M, 2011; Goyal S K, Hashim S R, Murthy M R and Ranganathan K V K, 2009). The clothing industry also offers straight employment to almost 36 billion employees considering a significant amount from the socially excluded class people. The developments which takes place in international trade with the new formation of blocks of trading and the reduction of Multi-Fiber Arrangement within a decade the clothing industry will have to adapt itself so that the prominent position that it has in Indian economy continues to be maintained (Tarlo E, 1996). The clothing industry accounts for 7% of world exports. In the last 10 years there has been a vast growth in the textile industry. Today clothing industry is considered to be the major export earners by gaining $4.5 billion. Experts estimate that India has the potential of exporting $9 billion worth of clothing by the year 2002.
Other than clothing industry, agriculture clothing is the only firm which has independent and separate agreement which was negotiated multilaterally under the World Trade Organization aegis. The international trade in clothing has converted necessarily resulting to the phase out of the MFA (Multi-fiber Arrangement) and with quota free trade. At present the contribution of the clothing industry to Gross Domestic Product is about 4%. The taking part of clothing to incompetence earning of export s about 38% and it gains less than 2% to the incompetence bill of imports of the country (Krugman, 2007; Cooklin G, Hayes S G and McLoughlin J J, 2006).
In clothing industry the world trade has developed 58 times between 1995 and 1996, whereas the exports of India has developed only by 18 times in the same period of time i.e. strengthening the reduction of share of clothing exports in India in the global trade sector (Niosi , 1991). Clothing is the major heart of development in the textile industry sector in the upcoming future. Given that the developed countries are likely to remain deficit countries and developing ones are where textile and clothing would be overflowing it is of paramount importance for the developing countries to ensure a meaningful market access to the developed country markets. In the last half decades the textile imports have developed widely is a known fact. The textiles growth rate into India was swifter before World Trade Organization came into occurrence than after the commitments of India to slow down their tariffs of import which come into effect.
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