Textile exports to Non-Quota markets-impact of real exchange rate movements

Abstract

This paper reports some results of a larger study of the extent to which Indian export performance in the major OECD destinations by market share at disaggregated product level, relative to that of other exporters in the same arena, can be explained by the relative competitiveness of Indian exports as measured by real bilateral rates of exchange of the Indian rupee vis-a-vis the currencies of fellow exporters. The study covers the period 1974-87. This paper focuses on textile and garment exports to Japan and Australia, the major non-quota OECD ma.kets for India.