A study of growth and diversification of Indian textile trade

This paper examines the competitiveness of Indian textile industry in terms of trade indicator specified by World Bank namely Growth, Diversification and Sophistication for the study period 2005 to 2015. The purpose of this analysis is to identify the gaps in trade performance on the basis of these parameters. Results indicate that Indian exports are not competitive because of heavy concentration in few product categories and slow growth orientation in these markets. Indian textile products are less diversified as compared to world textile exports. In order to enhance competitiveness, India needs to produce and trade technological intensive textile products. Product focused and market focused approach is crucially needed in order to take the advantage of latent capability in Indian textile industry, especially in garment sector.