“Evaluating The Export Competitiveness of Indian Cotton Value Chain: A Dual Matrix Approach”
DOI:
https://doi.org/10.66635/qxyr9850Keywords:
Cotton value chain, Export competitiveness, Dual matrix approachAbstract
Cotton, termed as ‘White Gold’, is an important component of Indian agriculture and the industrial sector. While India has enjoyed advantages in cotton production and export for a long time, historical dominance does not ensure future competitiveness. This study investigates whether India’s export growth is supported by price competitiveness or structural market share across the value chain from raw cotton to cotton fabric. A quantitative research design was employed utilizing twenty years of secondary time series data (2004–2023). India’s overall competitiveness was evaluated using a dual matrix approach, cross-referencing price efficiency (Nominal Protection Coefficient - NPC) with global market performance (Revealed Comparative Advantage - RCA). India remains a competitive exporter of raw cotton and cotton yarn, maintaining both price efficiency (NPC < 1) and significant structural advantages (RCA > 1) due to a strong manufacturing base, competitive labour costs, and widespread adoption of high-yielding Bt cotton varieties. However, a price-performance gap was observed in value-added products like cotton thread and cotton fabric. These segments hold structural advantages (RCA > 1) but lack price competitiveness (NPC > 1) due to high domestic production costs and fragmented weaving units. Historical structural advantages alone cannot ensure future competitiveness against domestic price distortions and aggressive global competitors.
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