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India - Cotton and textile industries : reforming to compete : Main Text (English)

Only increased productivity and improved product quality can keep India's cotton textile industries competitive and expanding against goods from other major exporters both in foreign markets and at home--where apparel demand is due to grow along with the largely export-generated demand for intermediate textile inputs (i.e., yarn and fabrics). This report finds that measures to enhance productivity and quality will require massive modernization investments but a host of polices and regulations relating to firm size, product composition, labor and taxation, combined with inadequate export infrastructure and cumbersome customs procedures still limit firms' capacity and incentives to undergo adjustment and modernization. Discussing the challenges ahead, the first and second chapters of the main text (Volume 1) describe the structure, operation, and policy and regulatory constraints to growth and increased competitiveness in the sectors, drawing at all times on the strong linkages between manufacturing and agriculture. Chapter 3 proposes a program for action to meet these new challenges. Volume 2 presents more in-depth discussion of the textile and cotton policy environment; the structure and performance of the textile industry; the cotton production sector; cotton markets; the impact of the phase-out of the Multi-Fiber Agreement on the cotton and textile sectors; and short run, distributional consequences of domestic cotton and textile reforms.


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    Pre-2003 Economic or Sector Report

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    South Asia,

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    Main Text

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    textile industry;advantage of economies of scale;exchange need;cotton lint;supply of raw material;total labor force;life expectancy at birth;Social Costs of Transition;world market price;loss of competitiveness;gnp per capita;reliable water supply;agreement on textiles;export quota;cotton price;kind of investment;impact on yield;domestic cotton production;delegation of authority;hectares of land;poor water delivery;process of modernization;pest management technology;access to water;consumer price index;cost to taxpayers;access to import;policy on bankruptcy;exposure to risk;free market price;public extension service;central government official;competition from imports;rural headcount index;births per woman;total fertility rate;poor rural people;cotton price support;infrastructure and services;dual exchange rate;foreign exchange transaction;Food Price Index;primary school enrollment;gross domestic product;per capita gnp;high yielding variety;average exchange rate;incidence of poverty;absence of competition;agricultural support service;Integrated Pest Management;expansion of export;water user group;increase in income;import tariff;farmer;cotton marketing;improved seed;cotton export;rainfed area;live birth;cotton seed;export parity;merchandise export;future contract;labor regulation;Tax Exemption;apparel sector;cotton yarn;short supply;price advantage;tax concession;Exchange Rates;seed management;cultivated area;efficiency gain;employment opportunities;employment opportunity;customs procedure;future market;pesticide subsidy;higher grade;future trading;market information;cotton producer;technological advancement;product quality;cotton variety;private trader;export revenue;regulatory impediment;discriminatory taxation;implicit tax;grading procedures;domestic trade;price floor;irrigated area;export tax;edible oil;pesticide regulation;large enterprise;world price;Rural Poor;exclusive right;tax incentive;fiber strength;market rate;international standard;production cost;quality indicators;net capital;crude petroleum;on-farm water;grading standard;income population;price incentive;global trade;urban population;fiscal authority;moisture retention;support price;cotton exchange;textile mill;improved public;trade imbalance;sector fund;grade system;watershed program;trading operations;foreign sale;market management;government action;domestic price;pest damage;net importer;marketing cost;technological change;market activity;quota elimination;fiscal cost;Commodity future;productivity growth;institutional constraint;porous borders;import needs;foreign competition;pest control;cultivation practice;trade financing;market operation;soil management;pest resistance;private mill;research priority;social indicator;government revenue;social security;market infrastructure;safe water;immunization rate;market efficiency;cotton research;guarantee price;private research;purchase price;certification process;common market;child malnutrition;efficient market;competitive grant;discretionary interventions;research collaboration;budget speech;textile trade;Social Protection;rural folk;incentive problem;social obligation;man-made fibers;cotton textile;domestic production;domestic standard;domestic demand;adequate supply;export incentive;Tax Holiday;competitive segment;international consumers;efficiency loss;spare capacity;garment manufacturer;positive spillover;domestic reform;small fraction;displaced worker;fiscal constraint;government involvement;effective strategy;productive employment;handloom industry;income loss;compensatory action;million people;financial loss;Labor Union;exit policy;capacity utilization;Economic Policy;vertical integration;old machinery;production control;price relative;production process;state sector;reducing tariffs;industry structure;Labor Law;driving force;firm performance;synthetic fiber;production technique;human factor;remunerative employment;massive investment;smaller enterprise;dualistic structure;cost component;net profit



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India - Cotton and textile industries : reforming to compete : Main Text (English). Washington, D.C. : World Bank Group.