Garments Industry in India: Lessons from Two Clusters

Satyaki, Roy (2009): Garments Industry in India: Lessons from Two Clusters.

Abstract

Garment industry worldwide is undergoing significant restructuring since the final phaseout of the Multi‐fibre Arrangement. The changes are taking place in terms of relocating production sites on the one hand and coping with the new competition on the other. In this context the paper tries to look into the status of garment industries in India and see how the assumed release of constraints in demand both through liberalization in domestic trade policies and by phasing out of multi‐fibre agreement has impacted upon the growth and size distribution of firms in the sector. The paper focuses on how the responses of individual firms are embedded in the evolving patterns of production organization, labour processes and institutional arrangements related to respective industrial sites.

• Item Type: MPRA Paper
• Language: English
• Keywords: size distribution; clusters; institutions; agglomeration
• Subjects: L - Industrial Organization > L6 - Industry Studies: Manufacturing > L67 - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R12 - Size and Spatial Distributions of Regional Economic Activity

References

Amsden, Alice (2001) The Rise of ‘The Rest’: Challenges to the West from Late Industrializing Economies. Oxford: Oxford University Press.

Berger, Suzanne (2006), How we Compete. New York: Currency/Doubleday.

Chari, Sharad (2000), “The Agrarian Origins of the Knitwear Industrial Cluster in Tiruppur, India,” World Development , Vol. 28, No. 3, Pp. 579–599, 2000.

Feenstra, R. C., 1998, “Integration of Trade and Disintegration of Production in the Global Economy,” Journal of Economic Perspectives, Vol.12; No.4, Pp.31–50

Imbs, J. and R.Wacziarg (2003), ‘Stages of diversification’, American Economic Review,93(1):63–86.

Kuznets, Simon (1971), Economic Growth of Nations: Total Output and Production Structure, Cambridge Mass.

Marshall, A. (1948), Principles of Economics, 8th.edition, Macmillan, New York.

Mazumdar, Dipak and Sandip Sarkar (2009), “The employment problem in India and the Phenomenon of the ‘Missing Middle’,” Indian Journal of Labour Economics, Vol. 52, No. 1, Pp. 43–55.

Nalbi, Mustapha K. and Jeffrey B. Nugent (1989), ‘The New Institutional Economics and Its Applicability to Development’, World Development, Vol.17, No.9, Pp. 1333-1347.

Schmitz, Hubert (1999), ‘Collective Efficiency and Increasing Return,’ Cambridge Journal of Economics, Vol.23, No.4, Pp. 465–483.

Sengupta, Nirmal (2001), A New Institutional Theory of Production: An Application, Sage Publications, New Delhi.

Sreenivasan, Kasthuri (1984), India’s Textile Industry: A Socio‐economic Analysis, Coimbatore: The South Indian Textile Research Association.

Tewari, Meenu (2006), ‘Is Price and Cost Competitiveness Enough for Apparel Firms to Gain Market Share in the World after Quotas? A Review,’ Global Economy Journal, Vol. 6, Issue 4, Article no. 5.

UNCTAD (2005),, ‘TNCs and the Removal of Textiles and Clothing Quotas’, United Nations, Geneva.

UNIDO, Industrial Development Report 2009, “Breaking In and Moving Up: New Industrial Challenges for the Bottom Billion and the Middle‐Income Countries.”

Williamson, Oliver E (2000), ‘The New Institutional Economics: Taking Stock, Looking Ahead’, Journal of Economic Literature, Vol.38, September, Pp. 595–613.

Williamson, Oliver E (2002), ‘Economic Institutions and Development: A View from the Bottom’ in Satu Kahkonen and Mancur Olson (ed). A New Institutional Approach to Economic Development, Vistaar Publications, New Delhi.