A Study on Export Potential of Cotton from India to USA

Kalpana Agrawal, Sandeep Gupta, Sharon Gill


Export of textiles used to occupy commanding heights in Indian economy. Cotton is an important fiber crop of India which plays a dominant role in the country’s economy by meeting the domestic and export demands and supporting the livelihoods of millions of poor households. India contributes as much as 8 per cent to total merchandise exports and more than 2 percent to total GDP. It contributes significantly to both agriculture and industry in terms of farm income, employment and export earnings. India, despite being the second largest producer of cotton in the world, the present level of exports is not consistent and exhibits high variations in volume and revenue earnings. Cotton the most important commercial crop of India, often referred as the White Gold consumes more than 45% of the total pesticides used in our country.  Exports of cotton have been restricted by quotas, and the mill industry has been subject to such regulations as the obligation to supply hank yarn for Indian handlooms. These interventions have led to stagnating cotton yields, rent-seeking activities, manipulation of cotton statistics, and low profitability in cotton mills offsetting the short-run benefits of inexpensive cotton in India. If the data of last ten years are seen, lot of fluctuations can be observed, though export of textile used to make a formidable presence in Indian economy. In this context, this paper analyzes the trend of export from 2001 onwards. This paper will help to know the changing patterns of India’s textiles exports. 

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ISSN : 2251-1547