The Textile-Clothing Value Chain in India and Bangladesh : How Appropriate Policies Can Promote (or Inhibit) Trade and Investment
There are significant value chain linkages between India and Bangladesh, particularly in the textile and apparel sector. India specializes in the upstream segment, supplying such intermediate inputs as silk, cotton, yarn, and fabrics to Bangladesh....
| Main Authors: | , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2019
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/101321549556073308/The-Textile-Clothing-Value-Chain-in-India-and-Bangladesh-How-Appropriate-Policies-Can-Promote-or-Inhibit-Trade-and-Investment http://hdl.handle.net/10986/31263 |
| Summary: | There are significant value chain
linkages between India and Bangladesh, particularly in the
textile and apparel sector. India specializes in the
upstream segment, supplying such intermediate inputs as
silk, cotton, yarn, and fabrics to Bangladesh. Bangladesh
specializes in the downstream final apparel segment,
exporting worldwide as well as to India. Tariffs and
nontariff barriers in both countries inhibit the growth of
value chain linkages. In addition, subsidies and other
industrial policies in India distort incentives away from
the natural pattern of specialization. The results of a new
survey of textile and clothing firms in both countries
corroborate these findings. Reforms in trade policy
(including rules of origin), trade facilitation,
trade-related standards, and institutions could help both
countries better take advantage of value chain linkages. |
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