November 1998 Substantial export tax equivalents exist for Indian textile and clothing exports, especially to the United States. In today's world, these would have been even higher if domestic Indian policy constraints had been relaxed. In tomorrow's world, the health of India's textile and clothing industries may depend on timely relaxation of these constraints. The Agreement on Textiles and Clothing will abolish all quota restrictions in trade in textiles and clothing by the year 2005. Dismantling the quota regime represents both an opportunity (for developing countries to expand exports) and a threat (because quotas will no longer guarantee markets and even the domestic market will be open to competition). Data about the real burden imposed by distorting but nontransparent policies under the quota regime are inadequate, so Kathuria and Bhardwaj interviewed traders in Delhi and Bombay about quota rents. They provide comprehensive estimates of the magnitude of the implicit export taxes resulting from the labyrinth of quotas imposed under the WTO Agreement on Textiles and Clothing. Using the concept of an export tax equivalent (or ETE), they assess how much exports are restricted. The international trade regime in textiles and clothing imposes a substantial tax equivalent on Indian exports. Between 1993 and 1997, ETEs for garment exports to the United States were roughly double those for the European Union. The ETEs for the United States declined in 1996, which could be a warning signal that India faces increasing competition from a NAFTA-empowered Mexico. From India's viewpoint, the European Union is ahead of the United States in dismantling the quota regime-and in not restricting Indian cotton (garment) exports (where India has a comparative advantage) more than synthetics. India's strengths in this sector lie in natural resources and factor endowments-raw cotton and cheap labor. The Indian garment industry's decentralized production structure - subcontracting, which is low risk and low capital-has served the industry well but has excluded Indian products from the mass market for clothing, which demands consistent quality for large volumes of a single item. Growth in Indian exports may require a shift to an assembly-line, factory-type system. This would probably require: * No longer restricting garment production to the small-scale sector (and ending other anachronistic policies). * Making labor policy more flexible. o Ending the policy bias against synthetic fibers. * Reducing transaction costs for exports. This paper-a product of Trade, Development Research Group-is part of a larger effort in the group to assess the impact of industrial country trade policies on developing countries.

India plays a key role in addressing multilateral issues like climate change, terrorism, piracy, humanitarian crises, and nuclear disarmament. Scholarly work mapping India’s multilateral behaviour ranges from covering the United Nations to a wide range of fora where India seeks to influence issues that affect its security and development. Yet, there has been no serious exploration of how India concretely negotiates international rules. In this book, Karthik Nachiappan investigates how India negotiated four key multilateral agreements: The Framework Convention on Tobacco Control, The Framework Convention on Climate Change, The Comprehensive Test Ban Treaty, and the Uruguay Round Trade Agreement. Based on untapped primary sources including archival documents detailing how negotiations transpired, official records of the Lok Sabha and Rajya Sabha, a series of interviews with former Indian negotiators, and newspaper sources, Does India Negotiate? demonstrates that India’s multilateral behaviour is fundamentally strategic—working to shape and ratify international rules that advance core interests while resisting rules that harm those interests.

This book is designed to clarify India's interests in the World Trade Organization's Doha Development Agenda and to provide a blueprint for its strategy in multilateral negotiations. The focus is on facilitating domestic and external policy reforms that can serve to bolster India's participation in the multilateral trading system and to enhance the effectiveness of India's trade and related policies in achieving developmental goals. Individual chapters address the economic effects on India of the Uruguay Round Negotiations and the prospective Doha Agenda negotiations; the implications of the abolition of the Multi-Fiber Agreement; services issues and liberalization; telecommunications policy reforms; foreign direct investment; intellectual property rights; competition policy; government procurement; standards and technical barriers; trade and environment; and, finally, a comprehensive analysis of the major issues coupled with concrete proposals to guide India's participation in the Doha Development Agenda.

In light of the elimination of import restrictions under the WTO at the end of 2004, this book identifies the most recent market developments throughout the entire supply chain and outlines the policy and regulatory challenges that are arising.

This book explores India's rise on the global economic stage from the perspective of both international and domestic interests and activities. Sinha argues that the impact of globalization on India since 1990 needs to be understood not just in terms of national policy, but also in terms of changing trade capacities and private sector reform.