The textile sector is the backbone of Indian and Pakistan economy by virtue of its size, contribution to export earnings, GDP and employment. Despite being traditional sector, it is yet to tap its full potential. EU is an economic giant and a major market for India’s and Pakistan’s exports of textiles. Recently there have been significant changes in the trading environment affecting trade in textiles. Implementation of WTO Agreement on Textiles and clothing (ATC), growing intra-regional trade, increasing in-cidences of NTBs, enlargement of EU market in comparative framework. The study rigorously analysis the export performance and assess the supply dynamics in domestic textile industry. While outlining the Changing policy environment and their on these countries exports of textiles, it also estimates and compares competitive advantage of India and Pakistan applying number of tools such as RCA, ECLAC, Potential export products have been identify using Cosine measure and Trade Intensity indices. It also probes the scope for increasing FDI in this sector using IIT index. The study gives some policy initiatives that emerge out if an extensive analysis of data to enhance exports to EU in changing policy environment. Providing extensive analysis of textile export of India, Pakistan and China, this book will be of interest to policy makers, textile exporters, researchers and all other stake holders in the Industry.
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