Textiles and clothing exports from india and china: a comparative analysis

This paper compares the export performance of the textiles and clothing industries in India and China using the revealed comparative advantage and the Kreinin-Finger similarity indices. The results indicate that China has much higher shares in world exports of both textiles and clothing, while India has a comparative advantage in women's clothing of various sorts and men's shirts. With the abolition of the MFA, China is likely to gain at the expense of India in most items of exports of clothing, even in categories where India has a higher market share than China. India would have to improve her competitive strengths in export markets vis-a-vis China, especially so in high value design oriented products in the EU and the US markets.