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Current Issue / Comparative Analysis of Textile and Apparel Export Competitiveness Between India and Bangladesh Using RCA, TCI, and CMS Indices

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Comparative Analysis of Textile and Apparel Export Competitiveness Between India and Bangladesh Using RCA, TCI, and CMS Indices


Abstract

The present study makes a comparative analysis of the export competitiveness of textile and apparel sector of India and Bangladesh using the Revealed Comparative Advantage (RCA), Trade Competitiveness Index (TCI) and Constant Market Share (CMS) frameworks. It looks at the global positioning of each nation and the structural factors that determine competitiveness. Bangladesh has a considerable comparative advantage with high RCA values focusing on ready-made garments, as reported in the document (RCA increased from 3.82 in 2010 to 4.70 in 2024). Diversification in technology textiles, fabrics, yarns and textiles enhances competitiveness of India. “Bangladesh leads in exports, while India has good exports and consumption,” says TCI. Bangladesh’s export development is driven by competitiveness and India’s by international demand and product diversity, a Constant Market Share report said. India has a “higher world demand effect (32%) than Bangladesh (25%)” The paper presents a comprehensive comparison and policy-relevant insights for long-term competitiveness.

Keywords

Apparel, Bangladesh, Competitiveness, India