ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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India-Pakistan Relations

December 5, 1981 untouched. The industry has blamed increasing protectionism in the West, China's entry into the cotton piece moods export market etc, for its failure to fulfil the export quotas. These alibis will convince no one. While the lndian textile industry has year after year failed to fulfil the quotas allotted to it, even relative newcomers in the field like Thailand and Pakistan have not been affected by the supposedly adverse developments in the export market that the Indian industry makes so much of. The problem with Indian piece goods export is more basic. It is that given the large domestic market, the pressure on the Indian textile industry to export is relatively weak. This is reflected in the industry's lackadaisical attitude, with the exception of some units, to modernisation, despite the availability of loans on specially soft terms from the IDBT. It is also reflected in the lack of quality consciousness and the absence of determined efforts on the part of the industry to push up exports. The combined result has been that Indian cotton textiles have lost their competitive edge over better quality fabrics of other exporting countries. Viewed against this background, the projected increase in export subsidies on cotton piece goods is likely to serve little purpose.

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