How India is squandering the global textile opportunity

The Chinese take-away The pace at which China’s textile exports jumped (a few hundred percent) in this first few months of 2005 has caused wider ripples in the world of international trade. The United States and the European Union have raised import barriers, and in response, China has discarded its self-imposed handicap. In sharp contrast, … Continue reading “How India is squandering the global textile opportunity”

Textile quotas cause an unusual split in the developing world

Emerging economies vs developing countries A club comprising of several small developing countries, led by Bangladesh, is making a last-ditch effort to protect their textile industries after next year’s trade liberalisation causes a tectonic shift. In this venture, the club finds itself with an unlikely ally — the United States. All fear that China’s unbridled … Continue reading “Textile quotas cause an unusual split in the developing world”

A tectonic shift in the global textile industry

India can become a major player, but the government must accelerate economic reform YaleGlobal has a series of articles on the coming tectonic shift in the global textile industry once the international export-quota regime comes to an end this year. The new regime poses the most serious challenges for countries like Bangladesh and Cambodia, whose … Continue reading “A tectonic shift in the global textile industry”

Textile industry needs reform

Large scale dogma about small-scale industry Against initial expectations, the lapsing in December 2004 of the multi-fiber agreement (MFA) that imposed quotas on textile exports from developing countries will not be all good news for the Indian industry. Government policy prevents companies from growing to enjoy economies of scale, and arcane labour laws are an … Continue reading “Textile industry needs reform”

Textile industry on a comeback path

Businessweek reports that India’s textile industry has already invested more than $700m in readiness for 2005, when global textile quotas expire. The industry expects to invest another $2.5 billion by 2005 to expand capacity in order to take India’s exports to more than $13.5 billion it earned last year. The article points to two factors … Continue reading “Textile industry on a comeback path”

$14b textile industry awaits its turn

The ten-year old contortion called the Agreement on Textiles and Clothing (ATC) will ease on the next New Year’s day. Under this multilateral protectionist racket, quotas were imposed on the textile exports of different countries leading causing great anguish in India, China, Pakistan & Bangladesh. These countries could manufacture quality textiles at low costs. It … Continue reading “$14b textile industry awaits its turn”

Bruce Riedel says appeasement doesn’t work

Aid is the enemy of clear thinking Back in March 2009, when the Obama administration unveiled its Af-Pak strategy (in the formulation of which Bruce Riedel played an important part), this blog wrote: The main issue in President Barack Obama‚Äôs just-announced strategy for Afghanistan and Pakistan boils down to this: just how is the United … Continue reading “Bruce Riedel says appeasement doesn’t work”

Realpolitik over nuclear fuel, sixty years ago

The story of Travancore’s thorium The overwhelming success of Sardar Patel & V P Menon in integrating the 500-odd princely state into the Indian Union in a few short years after independence masks rearguard attempts by the departing British to create small client states in the Indian subcontinent to serve their geopolitical interests. Here’s an … Continue reading “Realpolitik over nuclear fuel, sixty years ago”

Vidarbha whodunit

Farmers are killing themselves because the government has denied them economic freedom Scores of farmers in Maharashtra’s Vidarbha region have been driven to suicide over the last few years, mostly on account of their inability to pay their creditors. Commentators have been quick to blame everything from bad monsoons, to multinational corporations (selling genetically modified … Continue reading “Vidarbha whodunit”

A difficult time ahead for the Pakistani economy

Riots are exactly what the Pakistani economy does not need right now. Adroit economic management coupled with generous assistance from the United States and other western countries helped pull the Pakistani economy from the brink of collapse in 2001, to a ‘star performer’ in 2005. But even before riots erupted across Pakistan in response to … Continue reading “A difficult time ahead for the Pakistani economy”