Exchange rate and export behaviour of India textiles & clothing sector : an enquiry for major destination countries

Abstract

The paper analyses the role of exchange rate in determining the export behavior of Textiles and Clothing (T&C) Sector. From the panel regression analysis of eight major exporting partner countries of Indian T & C sector, the study found an inverse relationship between the rises in exchange rate and exports. This suggests that the devaluation of Indian rupee has not helped to boost the exports of T&C sector. The findings further indicate the significant role of demand factor in determining the export growth. Key words: exports, exchange rate, prices, & WTO JEL Classification: F13, F32 & F41.

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