Economic Reforms and the Textile Industry in India

The textile industry in India, especially cotton textiles, has been going through a major transition since the 1992 round of trade and regulatory policy reforms. The transition has slowed down, but by no means ended, during the export and industrial recessions of 1996-7 and 1997-8. Given its scale and the nature of the change, the industry represents the most important example of structural transformation in industry induced by the reforms. This article describes the process with reference to the weaving and the textile machinery segments of the industry.