Indian textile sector faces high costs post-WTO reforms, benefits from domestic changes.
The article discusses how changes in global trade policies will affect India's cotton and textile sectors. By removing quotas on textiles, India will face more competition in the market. The study shows that India's current policies, like export quotas and restrictions on foreign investment, are holding back the sector's productivity. The researchers used a model to analyze the impact of these policies in a free trade environment. They found that reforming these policies will benefit India significantly when there is global free trade in textiles and apparel.