EXPORT COMPETITIVENESS AND THE MARKET FOR TEXTILES 2025

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Findings-The key determinants identified are labour and capital productivity, labour costs, exchange and real effective exchange rate (REER), domestic gross domestic product (GDP), trade liberalization and barriers.
Indias share of global trade in textiles and apparel stands at 3.9%. Ready Made Garments (RMG) with export of $ 8,733 Mn has the largest share (41%) in the total exports ($ 21,358 Mn) followed by Cotton Textiles (33%, $ 7,082 Mn), Man- Made Textiles (15%, $ 3,105 Mn) during the period of April-October of FY 2024-25.
The elimination of barriers to entry and rivalry, and a level playing field in upstream sectors contributes to export competitiveness in downstream manufacturing sectors. In some sectors, effective competition policy can directly lower trade costs.
The competitiveness of a countrys exports depends on a number of factors including relative prices, the dynamism of export markets, and non-price.
List of countries by textile exports CountryValue in 2022 China 303 desh 57.7 Vietnam 48.8 India 41.126 more rows

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Thompson (1961) on the other hand identified five main determinants of competitiveness: access to markets, location relative to raw materials, transportation costs, availability and cost of energy resources, and labor costs.
When it depreciates, production costs for domestic firms fall relative to those of foreign competitors, making the countrys exports more competitive in foreign markets. Conversely, when it appreciates, exports become less competitive and tend to contract.
Government policies and trade regulations, when supportive, boost the export sector through incentives and reduced barriers. The efficiency of infrastructure and logistics impacts cost and speed of exports, while political stability is vital to foster a favorable business environment.

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