Competitiveness of Indian Apparel Export Firms: An Analysis of Select Delhi-based Firms

Abstract

Indian apparel exporting firms have proved their competitiveness in some market segments in recent years. Global trade in apparel is likely to change significantly due to major changes in the international business environment. The paper takes a view that Indian apparel export firms will have the opportunity to increase their global market share provided they take the necessary steps to make themselves competitive in a quota- free world after 31 December 2004. The analysis is based on a survey of leading Delhi-based apparel exporting firms. Since the Delhi region accounts for India's largest apparel export trade, these firms are among the top firms in the country in terms of apparel export sales turnover. The paper studies select structural and operational parameters of Delhi firms that could impact their performance in future and brings out critical issues that require immediate attention. The paper also offers suggestions on how the government can facilitate better management practices in apparel exporting firms so that they become globally competitive.