Abstract

The textile industry has significant social implications in India, Bangladesh, Singapore, and Vietnam. In India, Bangladesh, and Vietnam, the textile industry is a major employer of women, providing economic opportunities and promoting gender equality. However, it also raises concerns about wage disparities, sexual harassment, and poor working conditions. In Singapore, the industry is shifting towards high-tech production and hiring skilled workers, which may lead to unemployment among low-skilled workers. Economically, the textile industry plays a vital role in each country’s GDP and employment rates. India is a major exporter of textiles, while Bangladesh is a significant player in the global market. Vietnam has seen rapid growth in its textile industry and has become the third-largest exporter. Singapore has a smaller textile industry but is a key player in the global trading hub.

Introduction

The textile industry serves as a vital component of the global economy, acting as a significant driver of trade, employment, and economic development in various regions. Among the countries that will be included within this comparative study – India, Bangladesh, Vietnam, and Singapore – the impacts of World Trade Organization (WTO) regulations on textile manufacturers’ income present an intriguing area of comparative study. With distinct economic landscapes, industry structures, and approaches to trade, these four nations showcase diverse responses to the challenge and opportunities posed by international trade regulations.

The textile sector in Bangladesh has burgeoned into the world’s second largest garment producer, largely due to WTO agreements that have encouraged trade and lowered tariffs. This impressive growth has resulted in a rapidly expanding workforce and a significant contribution to their national GDP, although the industry also grapples with challenges, including sustainability concerns and compliance with international standards that may affect the income levels among manufacturers.

Similarly, Vietnam has emerged as a significant player in the global textile industry, fueled by foreign direct investment and favorable WTO conditions, that have enhanced their market access. Despite soaring export values, the country faces its own set of challenges, including environmental compliances and economic disparities that impact income distribution within the sector.

In Singapore, the textile industry is distinct in its focus on high-end fashion and niche markets, operating on a smaller scale with an emphasis on design and branding over mass production. Here, WTO regulations play a critical role in export performance and income levels as local manufacturers navigate international labor and environment standards while being in a competitive global market.

Meanwhile, India’s vast and diverse textile sector illustrates a complex relationship with WTO regulations, influenced by varying state-level policies and compliance issues that shape manufacturers’ income dynamics. As they contend with international competition and evolving consumer preferences, Indian textile manufacturers are increasingly focused on innovation and strategic positioning to enhance their income despite the challenge of meeting the global standard.

Through this comparative study, the aim is to examine how WTO regulations influence income levels among textile manufacturers throughout South Asia. A common ground shall be found by analyzing the economic and social impacts, qualitative factors, and the role of external influences.

Literature Review

The textile industry in South Asia, particularly in countries like India, Bangladesh, Vietnam, and Singapore, usually has a large impact on the country’s socio-economic status. The industry consists of exports, imports, garment manufacturing, employment, etc. The World Trade Organization’s new regulations and policies have had profound impacts on these industries, influencing trade patterns, competitiveness, and overall economic development. This review will be a quick summary of the negative and positive outcomes using existing research.

Impact on India

The textile industry in India, a cornerstone of the country’s economy and a significant employment generator, has faced mixed outcomes due to the changed WTO regulations. These have opened new opportunities in the global market, increasing competition, which could be detrimental to smaller countries like Bangladesh or Vietnam. A study by Aziz Elbehri, Thomas Hertel and Will Martin (2003) assesses that some sectors may benefit tremendously, while those sectors/industries that are more niche and less competitive may suffer from pressure due to increased demand. In India specifically, the textile industry has been profoundly influenced by several policies of the WTO. Among these, three specific policies stand out for their impact: the Agreement on Textiles and Clothing (ATC), the Agreement on Subsidies and Countervailing Measures, and the Trade-Related Intellectual Property Rights (TRIPS) Agreement.

The Agreement on Textiles and Clothing (ATC), implemented on January 1, 1995, marked a pivotal moment for the global textile and apparel trade. This agreement aimed to phase out the Multifibre Arrangement (MFA), which had imposed quota restrictions on textile imports from developing countries to developed countries. The ATC mandated a gradual integration of textiles and clothing into the GATT rules, promoting a more liberalized and competitive global market. For India, a key textile exporter, the ATC promised greater access to international markets and the elimination of restrictive quotas. In practice, however, while the agreement did provide increased access, it also led to increased competition. Indian firms such as Raymond Limited and Vardhman Textiles had to adapt rapidly to the intensified global competition. The impact on these firms was mixed: while larger, well-established firms were able to leverage new market opportunities, smaller enterprises struggled to compete effectively, leading to significant market consolidation.

Another important policy, the Agreement on Subsidies and Countervailing Measures (SCM), implemented on January 1, 1995, sought to regulate the use of subsidies that could distort international trade. The SCM Agreement classified subsidies into three categories: prohibited, actionable, and non-actionable. For the textile sector, which had historically benefited from various government subsidies in India, this policy meant that some domestic support measures were scrutinized and challenged. This agreement forced Indian textile firms to adjust their operational strategies and financial practices to comply with international norms. For instance, textile giants like Arvind Limited faced pressures to revise their subsidy-based pricing strategies, leading to increased operational costs. The impact of the SCM Agreement was twofold: it fostered a more level playing field globally but also increased compliance costs for Indian businesses, potentially reducing their competitiveness in the short term.

The Trade-Related Intellectual Property Rights (TRIPS) Agreement, which came into force on January 1, 1995, introduced significant changes to intellectual property laws, including those affecting the textile industry. This agreement required member countries to adhere to strict intellectual property standards, including patents, trademarks, and copyrights. For Indian textile companies, this meant the need to protect their designs and innovations more rigorously. Firms such as FabIndia faced challenges in navigating new intellectual property regulations, as the enforcement of such standards required substantial investment in legal and administrative processes. On the positive side, the TRIPS Agreement helped Indian firms to secure their intellectual property, thereby protecting their innovations from counterfeiting and piracy. However, it also led to increased costs associated with compliance and enforcement.

Evaluating the overall impact of these WTO policies on India’s textile industry reveals a complex picture. While the policies generally aimed at creating a fairer and more competitive global market, they also introduced challenges for Indian businesses. The liberalization of trade under the ATC opened new markets but also exposed Indian firms to greater competition. The SCM Agreement’s restrictions on subsidies necessitated operational changes that could be costly for some companies. Meanwhile, the TRIPS Agreement provided better protection for intellectual property but also increased the regulatory burden on businesses.

In summary, while WTO policies have played a significant role in shaping the Indian textile industry, their impact has been nuanced. For large, competitive firms, these policies have often provided opportunities to expand and secure global market positions. For smaller or less competitive entities, however, the challenges and costs associated with compliance have sometimes outweighed the benefits. Thus, while WTO regulations have generally aimed to foster a fair-trade environment, the specific outcomes for Indian textile businesses have varied, reflecting a broader balance of opportunity and challenge in the global marketplace.

Impact on Bangladesh

Bangladesh’s textile industry has flourished and emerged into a leading exporter of clothing and garments. Due to their low cost of labor, they have become very attractive to Western countries. The World Bank (2005) reported that the rapid growth in Bangladesh’s textile industry and economic status has led to favorable trade policies, thus entering global demand. However, in their 2013 study , Mazedul Islam and Adnan Maroof Khan highlighted many problems caused by rapid growth, such as a tight monetary policy, lack of investment, removal of subsidy on the textile sector, and the effect of inflation. This could cause several problems in the future regarding Bangladesh’s economy and the global garment industry.

The textile industry in Bangladesh, a vital component of the nation’s economy and a major global supplier, has been significantly shaped by several WTO policies. Among these, three key policies stand out for their profound impact: the Agreement on Textiles and Clothing (ATC), the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and the Agreement on Subsidies and Countervailing Measures (SCM).

The Agreement on Textiles and Clothing (ATC), implemented on January 1, 1995, was a critical policy shift for the global textile and apparel market. Prior to the ATC, the Multifibre Arrangement (MFA) had imposed quota restrictions on textile imports from developing countries to developed nations, including Bangladesh. The ATC aimed to phase out these quotas over a ten-year period, integrating textiles and apparel into the General Agreement on Tariffs and Trade (GATT) framework. This transition was designed to promote a more competitive global market by reducing trade barriers. For Bangladesh, a major exporter of textiles, the ATC initially offered substantial opportunities. Firms such as Beximco Textiles and Square Fashions benefited from greater access to developed markets. However, while the removal of quotas expanded market access, it also exposed Bangladeshi firms to increased competition from other low-cost producers. This shift prompted both growth and challenges: while larger firms could capitalize on expanded export opportunities, smaller firms struggled to compete effectively, leading to a consolidation of the industry.

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), enforced from January 1, 1995, introduced stringent intellectual property regulations, including patents, trademarks, and copyrights. The aim was to create a uniform standard for intellectual property protection across member countries. For Bangladesh, which had previously enjoyed relatively lax intellectual property enforcement, this posed significant challenges. The TRIPS Agreement necessitated substantial changes in the domestic legal framework to comply with international standards. Firms like Ha-Meem Group, known for its large-scale garment production, faced increased costs associated with protecting intellectual property and adapting to new regulations. Although the TRIPS Agreement provided better protection against counterfeiting, it also imposed additional compliance costs on Bangladeshi businesses, particularly affecting small and medium-sized enterprises (SMEs) that struggled with the financial burden of adhering to new standards.

The Agreement on Subsidies and Countervailing Measures (SCM), also effective from January 1, 1995, aimed to regulate the use of subsidies that could distort international trade. This agreement classified subsidies into various categories, with certain types deemed actionable if they were found to negatively impact other member countries. For Bangladesh, which had historically relied on government subsidies to support its textile industry, this policy brought significant changes. The SCM Agreement led to the reduction of certain subsidies and increased scrutiny of trade practices. Prominent companies such as the DBL Group, which had benefited from various government incentives, had to adjust their strategies to comply with the new regulations. While the reduction of subsidies aimed to create a more level playing field, it also resulted in higher operational costs for Bangladeshi firms and reduced their competitive edge in the global market.

In evaluating the impact of these WTO policies on Bangladesh’s textile industry, it is evident that the changes have had mixed consequences. The ATC initially provided valuable opportunities for growth, but it also intensified competition. The TRIPS Agreement offered better protection for intellectual property, but imposed additional costs. The SCM Agreement aimed to foster fair trade practices, but led to increased financial pressures on firms reliant on subsidies. Overall, while these policies have contributed to a more competitive global market, they have also introduced significant challenges for Bangladeshi textile firms. Larger, well-established companies have generally adapted better to these changes, while smaller businesses have faced considerable difficulties. Thus, while the WTO regulations have largely been beneficial in fostering a fairer trading environment, the adjustment process has been uneven, reflecting both the opportunities and pressures of a more integrated global market.

Impact on Vietnam

Like Bangladesh, Vietnam has also turned out to be one of the fastest growing garment exporters, harboring the attention of countries in Western Europe and Japan. Sheng Lu (2022) highlights that Vietnam’s success is partially due to its ability to maintain high standards in production and logistics, making it an attractive sourcing destination for international brands. However, Khalid Nadvi and John Thoburn argue that the constant complaints are mostly about the quality of local fabrics. The Vinatex director said “the limitation in the supply of high quality fabric and accessories has weakened remarkably our competitiveness”.

The textile industry in Vietnam, a crucial sector of the nation’s economy and a major player in global markets, has been significantly influenced by various WTO policies. Three specific policies have had notable impacts: the Agreement on Textiles and Clothing (ATC), the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), and the Trade Facilitation Agreement (TFA).

The Agreement on Textiles and Clothing (ATC), which came into effect on January 1, 1995, was a pivotal policy aimed at phasing out the Multifibre Arrangement (MFA) that had previously restricted textile imports from developing countries. The ATC intended to integrate textiles and apparel into the General Agreement on Tariffs and Trade (GATT) framework, thereby promoting a more liberalized trade environment. For Vietnam, a significant exporter of textiles, the ATC initially presented considerable opportunities. Companies such as Vinatex and Thanh Cong Textile Garment were able to expand their exports to major markets, like the United States and Europe, due to the removal of quotas. However, while the ATC opened up new avenues, it also increased competition from other low-cost textile producers. This heightened competition put pressure on Vietnamese firms to improve efficiency and scale, resulting in a mix of growth and operational challenges. While some companies thrived, others struggled to maintain their market share amid the intensified competition.

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), which became effective on January 1, 1995, introduced rigorous intellectual property regulations, including patents, trademarks, and copyrights. This agreement was designed to standardize intellectual property protections across member countries, aiming to foster innovation and reduce piracy. For Vietnam, which had previously had relatively weaker intellectual property enforcement, the TRIPS Agreement required substantial legal and administrative changes. Firms such as Garment 10 and Dong Nai Garment had to adapt to new intellectual property laws, which involved significant investments in compliance and enforcement. While the TRIPS Agreement offered better protection for innovations and designs, it also imposed additional costs on Vietnamese businesses, particularly impacting smaller enterprises that found it challenging to meet the new requirements. The increased protection against counterfeiting was beneficial in securing intellectual property, but the added compliance costs posed challenges for many companies.

The Trade Facilitation Agreement (TFA), which came into force on February 22, 2021, marked a significant development in global trade policy. The TFA aimed to simplify and streamline international trade procedures, reducing trade barriers and enhancing customs efficiency. For Vietnam, the TFA represented a crucial opportunity to improve its trade infrastructure and reduce the bureaucratic hurdles associated with exporting textiles. Companies such as the Vietnam Textile and Apparel Association (VITAS) and many small and medium-sized enterprises (SMEs) in the textile sector benefited from the streamlined customs procedures and improved logistics. The TFA’s emphasis on transparency and efficiency helped reduce delays and costs associated with cross-border trade, contributing to increased competitiveness in international markets. However, the implementation of the TFA required significant investments in modernizing trade facilities and training personnel, which posed initial challenges for some firms.

In evaluating the overall impact of these WTO policies on Vietnam’s textile industry, the effects have been both positive and negative. The ATC provided increased market access, but also heightened competition, driving growth for some while challenging others. The TRIPS Agreement enhanced intellectual property protection, but introduced additional compliance costs. The TFA offered improvements in trade efficiency and reduced costs, though it required significant investment in infrastructure and training.

Overall, while WTO policies have contributed to a more integrated and competitive global market, they have also presented challenges for Vietnamese textile businesses. Larger and more established firms have generally adapted better, leveraging the opportunities presented by these policies. In contrast, smaller businesses have faced greater difficulties in adjusting to the new regulations and competing effectively. Thus, while the policies have fostered a more level playing field and offered opportunities for growth, the adjustment process has been uneven, reflecting both the potential benefits and the challenges of a rapidly evolving global trade environment.

Impact on Singapore

Singapore’s advanced infrastructure and strategic location have allowed it to capitalize on the new trade environment promoted by the WTO. The country plays a critical role in supporting the broader textile trade in South Asia, even though Singapore itself does not engage extensively in textile manufacturing​.

The textile industry in Singapore, known for its strategic role in the global supply chain and its significant contribution to the national economy, has been substantially influenced by various WTO policies. Three specific policies that have notably impacted this sector include the Agreement on Textiles and Clothing (ATC), the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, and the Trade Facilitation Agreement (TFA).

The Agreement on Textiles and Clothing (ATC), which was implemented on January 1, 1995, marked a major shift in global trade policy by phasing out the Multifibre Arrangement (MFA) that had imposed quotas on textile imports from developing countries. The ATC aimed to integrate textiles and clothing into the General Agreement on Tariffs and Trade (GATT) framework, promoting a more open and competitive global market. For Singapore, a significant player in the textile industry, the ATC had mixed repercussions. The agreement allowed Singaporean firms such as Textiles and Apparel Limited (TAL) and Hwa Hong Corporation to expand their export markets beyond the previously restrictive quotas. However, the increased market access also meant heightened competition from other low-cost textile producers. This shift necessitated that Singaporean firms innovate and improve their efficiency to remain competitive, leading to both growth opportunities and increased operational pressures.

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, enforced from January 1, 1995, was another pivotal policy affecting the textile industry. This agreement introduced stringent standards for intellectual property protection, including patents, trademarks, and copyrights, with the goal of harmonizing intellectual property laws across member countries. For Singapore, which had a relatively advanced intellectual property regime, the TRIPS Agreement required further adjustments to align with international standards. Firms such as Singapore Technologies and the textile division of Raffles International had to enhance their intellectual property protections and invest in compliance measures. While the TRIPS Agreement provided better safeguards against counterfeiting and intellectual property theft, it also imposed additional legal and administrative costs on Singaporean businesses. The increased protection of innovations was beneficial for safeguarding proprietary designs and technologies, but the associated compliance costs could be burdensome, particularly for smaller firms.

The Trade Facilitation Agreement (TFA), which came into force on February 22, 2021, aimed to streamline international trade procedures and reduce trade barriers. The TFA focused on improving customs efficiency, enhancing transparency, and simplifying trade processes. For Singapore, known for its robust trade infrastructure, the TFA offered opportunities to further enhance its position as a global trade hub. Companies such as Singapore-based textile manufacturer BBA International benefited from the streamlined customs procedures and improved logistics. The TFA’s emphasis on reducing bureaucratic delays and lowering trade costs supported Singapore’s strategic goal of maintaining a competitive edge in global trade. However, the implementation of the TFA required significant investments in modernizing trade facilities and training personnel, which presented initial challenges. Despite these costs, the overall impact of the TFA was positive, as it reinforced Singapore’s role as a leading international trading center by improving trade efficiency and reducing transaction costs.

In evaluating the impact of these WTO policies on Singapore’s textile industry, it is clear that the effects have been both beneficial and challenging. The ATC facilitated market access, but increased competition, pushing firms to innovate and enhance efficiency. The TRIPS Agreement strengthened intellectual property protections, though it introduced additional costs. The TFA improved trade efficiency and supported Singapore’s trade hub status, despite initial implementation challenges. Overall, while the WTO policies have contributed to a more competitive and integrated global market, they have also required Singaporean textile businesses to navigate new regulatory environments and adapt to evolving market conditions. The policies have generally supported growth and competitiveness, particularly for larger and well-established firms, while presenting adaptation challenges for smaller businesses.

Comparative Analysis

The World Trade Organization (WTO) has impacted the textile industries of India, Bangladesh, Vietnam, and Singapore in many ways, albeit to varying magnitudes and levels of effectiveness. By examining the impact of key WTO policies on these countries, we can see how different strategies and circumstances have led to varied outcomes in terms of benefits and challenges.

Vietnam and Bangladesh have both thrived due to the WTO regulations. They are achieving high economic growth and flourishing in the textile industry. In contrast, the impact on India has been more double-edged, meaning that there have been great aspects but also implications that could be harmful to other industries. However, they all do share common challenges, such as imported raw materials, lack of technology, and an under-skilled labor force.

The Agreement on Textiles and Clothing (ATC) was designed to phase out the Multifibre Arrangement (MFA) that had restricted textile imports from developing countries. For Singapore, this agreement was a game-changer. Singaporean textile firms, such as Textiles and Apparel Limited (TAL), were already well-equipped to exploit the increased market access. The removal of quotas allowed Singapore to expand its presence in global markets more freely, bolstering its position as a major trade hub. This was less straightforward for Bangladesh. While the ATC opened new export opportunities, the increase in competition from other low-cost producers created challenges. Smaller Bangladeshi firms found it hard to compete, and the benefit was not evenly distributed across the industry.

India’s experience with the ATC was mixed. Large, established firms like Raymond Limited and Vardhman Textiles managed to grow by accessing new markets as quotas were removed. Although large firms benefited, smaller players in the industry suffered due to challenges arising from increased competition. This was also true for Vietnam: although the ATC allowed Vietnamese firms better access to international markets, the competition required them to rapidly enhance their efficiency and competitiveness.

The Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which was implemented starting January 1, 1995, introduced stricter intellectual property regulations. For Singapore, with its already strong intellectual property infrastructure, TRIPS reinforced protections and offered better safeguards against piracy and counterfeiting. This was advantageous for firms like Singapore Technologies, which could better protect their innovations, though the new regulations came with higher compliance costs, which particularly affected smaller firms. Bangladesh faced a tougher challenge. Companies like Ha-Meem Group had to invest heavily in adapting to the new intellectual property standards, putting a strain on their resources. Similarly, in India, while the TRIPS Agreement offered stronger protections, it also increased costs and compliance requirements, especially burdening smaller businesses.

The Trade Facilitation Agreement (TFA) aimed to simplify and streamline trade procedures. For Singapore, the TFA further strengthened its position as a leading global trade center. Companies like BBA International benefited significantly from improved customs procedures and reduced trade barriers, since it enabled them to operate with a higher degree of efficiency. Vietnam also benefited from the TFA, as a result of lower transaction costs – namely reduced trade costs and improved logistics. However, for Bangladesh, the initial costs of upgrading trade facilities and training staff were significant, and this slowed the full implementation of the TFA’s benefits. India faced similar issues, though larger firms were generally able to adapt more successfully than smaller ones.

In comparing these countries, it is clear that Singapore has been the most successful in leveraging WTO policies. Its advanced trade infrastructure and proactive strategies allowed it to benefit greatly from the ATC, TRIPS, and TFA. Vietnam also saw notable benefits, especially from the ATC and TFA, but faced challenges in competition and modernization. Bangladesh and India, while benefiting from WTO policies, encountered more difficulties. Bangladesh struggled with competition and compliance costs, while India’s benefits were uneven, favoring larger firms over smaller ones.

The different outcomes can be attributed to how well each country adapted to WTO regulations. Singapore’s existing trade strengths and proactive measures enabled it to maximize benefits. Vietnam, relatively new to global markets, had to quickly navigate both opportunities and challenges. In contrast, Bangladesh and India faced more significant hurdles due to their need to adapt to new regulations and competitive pressures. These varied experiences highlight the complex nature of WTO policies and their diverse impacts on different economies.

Social Implications of the Textile Industry on India, Bangladesh, Singapore, and Vietnam

The textile industry has many profound social impacts on Bangladesh, India, Singapore, and Vietnam, shaping the socio-economic status of each country. Social impacts can relate to health, education, environment, and gender. All countries around the world have sociological responsibilities, defined as an obligation by decision-makers to pursue actions which protect and improve the welfare of society as a whole. However, sometimes these social responsibilities are not a big factor in developing countries, as they usually focus more on economic responsibilities. In this section we will discuss the social implications behind the textile industry.

India, Bangladesh, and Vietnam all have very similar social implications in relation to the textile industry. All of them are characterized by a large, significant, and uneducated female employment population, who are looking for low-skilled work (Bose 2024). This particular sector has been vital for women, offering crucial economic opportunities, financial independence (which plays a crucial role in women’s empowerment), independence, and promoting gender equality. The textile industry also encourages new training programs to help individuals (mostly women) gain more skills to further their education and skillset (Kaur 2018). However, there are many negative sides to women being the majority employed in TNCs and TNG factories; women often face wage disparities, sexual harassment, little to no opportunities for career advancement, and poor working conditions.

As well as having positive and negative implications for female employees, there are also horrible working conditions in these countries. Workers frequently face long hours and job insecurity, and the pay is very low. For example, in Bangladesh the average hourly rate is 150 BTO, which is $1.37 USD, around $28 lower than the US average hourly rate. Additionally, the working conditions in these factories are less than subpar because of inadequate health and safety regulations, which can cause many hazards, including safety, physical and chemical problems. Medical hazards may stem from prolonged exposure to toxic chemicals and dust, respiratory issues and injuries, which can cause a massive problem in the long-run for the health of these countries (Gupta et al 2015).

In contrast, the textile industry in Singapore reflects the economic transition from labor-intensive manufacturing to high-skilled, technology-driven processes. While the textile industry is not a key player in Singapore’s economy, it usually uses high-level capital technology, hires high-skilled employees, and has greater work opportunities for those who have the skills to enter (Cahyadi et al 2004). However, even though Singapore focuses on more ethical and sustainable ways of production, this may also lead to a shift in employment, with unemployment being more prevalent due to the reduction in low-skilled jobs in the industry, usually held by migrant workers, women, children, and those in poor households, which in turn could increase poverty and widen inequality.

Economic Implications of the Textile Industry on India, Bangladesh, Singapore, and Vietnam

The textile industry plays a pivotal role in the economies of India, Bangladesh, Singapore, and Vietnam, each with distinct characteristics, benefits, and challenges. In India, the textile sector contributes approximately 14% to industrial output and 4% to GDP, providing employment to over 45 million people, especially in rural areas. Government initiatives like the Technology Upgradation Fund Scheme (TUFS) and the Production-Linked Incentive (PLI) scheme aim to attract foreign investment and enhance competitiveness. However, challenges such as outdated technology, regulatory hurdles, and sustainability issues persist, alongside increased competition from countries like Bangladesh and Vietnam. India’s membership in the WTO has reduced tariffs and expanded global market access, but also increased pressure on domestic manufacturers to meet global quality and compliance standards (Joshi, IIFT’s).

Bangladesh’s economy heavily depends on its textile and garments industry, which accounts for about 80% of total exports and employs approximately 2.5 million workers. This sector has significantly contributed to poverty reduction and economic growth. However, compliance with international labor and environmental standards post-WTO has driven up production costs, and the economy remains vulnerable to global market fluctuations. Singapore, with a smaller textile sector focused on high-end fashion, technical textiles, and niche markets, leverages its strategic location and various Free Trade Agreements (FTAs) to boost exports. While the sector’s contribution to employment is less significant, its emphasis on innovation and sustainability offers competitive advantages in global markets, though compliance costs pose challenges (Mlachila, 2017).

Vietnam’s textile industry has seen rapid growth, becoming the second largest in terms of export turnover, with exports reaching approximately $44 billion in 2022. The country’s WTO membership has streamlined access to global markets with lower tariffs, attracting substantial Foreign Direct Investment (FDI). This growth has created millions of jobs, contributing to poverty reduction, although issues like income inequality and fair labor practices remain. Across these nations, while the textile industry drives job creation, export revenue, and GDP contributions, challenges such as sustainability and international compliance standards persist, with each country addressing these based on their unique economic conditions and industry structures (WFX, 2023).

Exports and Imports in the Textile Industry in India, Bangladesh, Singapore, and Vietnam

The textile industry is an important factor in the economies of India, Bangladesh, Singapore, and Vietnam, contributing differently in each country through imports and exports.

I. India

India, one of the biggest exporters of the textile industry, has exported about 41.4 billion dollars worth of textile products in the year 2022. These textile products were exported to countries like China, Germany, India, and Italy. They have exported products such as silk, wool, carpets, and natural silk yarns. In terms of importing, India has imported 12.1 billion dollars worth of products, including raw cotton, wool, and synthetic fibers. The major countries they imported from were China, Bangladesh, the United States, and Vietnam. This made India the 20th largest importer in the world.

II. Bangladesh

The second largest country exporting textiles in the world in 2022 was Bangladesh. The country has exported 57.7 billion dollars in textiles, and it was the most exported product in the country the same year. Bangladesh manufactures clothes for brands like Gap, H&M, and Tommy Hilfiger. They also manufacture clothes for retail stores such as Walmart and Target. As a result, Bangladesh mainly exported its products to the United States, Germany, Canada, and European nations. As the industry has grown, Bangladesh has faced a problem with the supply and demand gap. The garment industry is not able to support the textile industry with its local products, so they import products from countries such as China, India, South Korea, and Thailand. They import raw materials from other countries, such as yarn and cotton.

III. Singapore

Compared to other countries, Singapore has a relatively small textile industry. It has exported 2.15 billion dollars worth of products. Companies such as Adidas and Xerox export textiles from Singapore to the United States. Their products are primarily exported to Malaysia, India, Indonesia, and Vietnam. In terms of imports, they have imported $4.88 billion products from China, France, Malaysia, Indonesia, and Vietnam.

IV. Vietnam

Vietnam is also one of the biggest textile industry importers. In 2022, the country exported 48.8 billion dollars of textile and became the third largest exporter. Products like footwear, garments and yarns were mainly sent to the United States, Japan, South Korea, and Canada. In importing, Vietnam imported $27.5 billion worth of raw materials/products from countries such as China, Taipei, South Korea, and the United States.

All the textile industries in India, Bangladesh, Singapore, and Vietnam play important roles in the global market. India and Vietnam are major exporters; they use their competitive skills in manufacturing capacity and competitive markets. Bangladesh is also a major country when it comes to the textile industry, but due to its supply and demand gap it relies on its imports. Singapore, on the other hand, is not a major country of the textile industry, but is one of the key factors in a trading hub. In conclusion, each country has different roles to play, yet they are all significant.

CONCLUSION

 In conclusion, this study looked at how World Trade Organization (WTO) rules affected the incomes of textile manufacturers in India, Bangladesh, Vietnam, and Singapore. The results show that the impact is different for each country.

In India and Bangladesh, textile manufacturers initially struggled because of the costs of following new rules and stricter labor standards. However, over time these rules helped improve quality and market access, leading to better incomes for manufacturers. Vietnam, with its strong ties to global markets and smart trade policies, used WTO rules to make its textile sector more competitive, resulting in significant income increases for manufacturers. Singapore, with its advanced economy and focus on high-quality textiles, found it easier to follow WTO rules. This helped keep incomes stable for its manufacturers through innovation and high productivity.

Overall, while WTO rules have been challenging, they have also pushed these countries to modernize and compete better globally. This study shows that flexible strategies, government support, and ongoing investments in quality are important to benefit from international trade rules and improve incomes in the textile industry.

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