tirupur crisis

Case Study of Tirupur
Contents
1. Prelude:
2. Tamilnadu – a Brief
3. Comibatore – Industrial District of Tamilnadu
4. Tirupur – Banian City
4.1 History (Supported by Video)
4.2 Industry around Tirupur
4.3 Composition of Industrial Growth
4.4 Infrastructure
4.5 Growth Factors (Supported by Video)
4.6 Incentives & Resources
4.7 Role of Support Institutions (Supported by Video)
4.8 Issues of Governance (Supported by Video)
4.9 Environment Issues (Supported by Video)
4.10 Innovations Achieved & Planned (Supported by Video)
4.11 Access to Venture Capital
4.12 Overall Assessment
4.13 Future Outlook
References

1

1. Prelude:
The Multi-Fiber Arrangement (MFA) and other earlier agreements through quantitative restrictions govern the International trade in textiles and clothing for more than three decades now. One of the major milestones of the Uruguay Round was the Agreement on Textiles and Clothing (ATC) which provides for the dismantling of these restrictions. Under the ATC, the MFA restrictions are to be phased out over a ‘ten year’ period and are scheduled to end by the year 2005.
The Global textile and clothing trade has increased by around 60 times, from less than $6 billion in 1962 to $395 billion in 2003. Of the total trade, more than 57 percent is trade in clothing and the rest in textiles. As world textile trade has increased by 30 times and trade in apparel has grown by more than 100 times, apparel trade has taken the lion’s share of total world Textile and clothing trade.
Asia is a major player in the clothing sector which accounts for more than 27 percent of trade in Western Europe and North America. In fact such a hold in these markets by Asia in spite of Quota Restrictions highlights the opportunities for
Asian Region in the Post MFA regime.
In general, it is seen that the developing countries have a comparative advantage in textiles and clothing trade. This advantage helps them to look beyond exports of
traditional

References: 1. ‘Reality of Sustainable Trade’,Edited by Nick Robins and Sarah Roberts, IIED, U.K., 2000 2. Industrial Clusters and Networks: Case Studies of SME Growth And Innovation, Khalid Nadvi, UNIDO SME Programme, 1995 Environment and Health, Chennai, India, 15-17 December, 2003. Bangalore, October, 2000 6 7. Duttagupta R. and Panagariya A., 2001, Free Trade Areas and Rules of Origin : Economics and Politics, pp 9. Kathuria S., Martin W. and Bhardwaj A., 2000, Implications of MFA Abolition for South Asian Countries, Paper presented at the 10. Kathuria Sanjay and Bhardwaj Anjali, 1998, Export Quotas and Policy Constraints in the Indian Textile and Garment Industries, 12. Krueger, A. O., 1993, Free Trade Agreements As Protectionist Devices : Rules of Origin, NBER, Working Paper 13. Ministry of Textiles, Government of India, Annual Reports, 2001, 2002, 2003 & 2004. 14. Nordas, Hildegunn Kyvik, 2004, The Global Textile and Clothing Industry Post the ATC, Discussion Paper 5, WTO Geneva. 15. Rangarajan, K., 2004, Rules of Origin under GSP as a Market Access Barrier to Indian Textiles and Clothing Exports, 16. The IMF and the World Bank, 2002, Market Access for Developing Country Exports- Selected Issues, Washington (September 26, )