Problems of Indian Garment Exporters in the Light of Multi-fibre Arrangement (MFA) Phase-out

The textile and garment sector is one of India's oldest and most important economic sectors, second only to agriculture in terms of employment, net foreign earnings, and industrial production. Until December 2004, Multi-Fibre Arrangement (MFA) governed the world trade in the textiles and garment sector. From 1 January 2005, it has been regulated by an Agreement on Textile and Clothing (ATC), which paved the way for phase-out of Multi-Fibre Arrangement (MFA). This article analyzes the various problems of Indian garment exporters in the light of MFA phase-out. The article is based on a survey of selected garment exporters of Northern region (Delhi and Ludhiana) and proposes suggestions for policy makers and strategies for garment exporters that will help them in increasing their export share in the world market.