Export and import process of clothing products in India

By on May 25, 2012

The clothing industry in India dwells an important place in the economy of the country and supplies substantially to earnings of export. The clothing industry is the second largest provider of employment in India after agriculture. Clothing makes up around 17% of the entire exports.

Importance of clothing export industry in India

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 take place in international trade with the new formation of blocks of trading and the reduction of multi-fibre 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. The today clothing industry is considered to be the major export earners by gaining $4.5 billion. Experts estimated that India had 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 an independent and separate agreement which was negotiated multilaterally under the World Trade Organization aegis. The international trade in clothing has converted necessarily resulting in 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).

Impact of the clothing industry

In the clothing industry, 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 the 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 is where textile and clothing would be overflowing. It is of paramount importance for developing countries to ensure meaningful market access to the developed country markets. 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.


  • Rudolf M (2011), India and China: Markets Competitors-Partners, Springer, Germany.
  • Goyal S K, Hashim S R, Murthy M R and Ranganathan K V K (2009), Indian industrial development and globalization, Academic Foundation, New Delhi.
  • Tarlo E (1996), Clothing matters: dress and identity in India, Hurst and Co. Publishers, UK.
  • Krugman (2007), International economics, Dorling Kindersley, New Delhi.
  • Cooklin G, Hayes S G and McLoughlin J J (2006), Introduction to Clothing Manufacture, Blackwell Publishers, UK.
  • Niosi J (1991), Technology and national competitiveness: oligopoly, technological innovation and international competition, Mc-Gill Queen’s University Press, Canada.


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