K.P. Ravichandar


Department of Textile Technology

K.S.Rangasamy College of Technology



P.Ganesan , S.Hariharan & M.Thirumoorthy


Department of Textile Technology

PSG College of Technology

ganeshg007@rediffmail.com & shariharan108@gmail.com



The textile industry is the largest industry of modern India. It accounts for over 20 percent of industrial production and is closely linked with the agricultural and rural economy. It is the single largest employer in the industrial sector employing about 38 million people. If employment in allied sectors likes ginning, agriculture, pressing, cotton trade, jute, etc. are added then the total employment is estimated at 93 million. The net foreign exchange earnings in this sector are one of the highest and, together with carpet and handicrafts, account for over 37 percent of total export earnings at over US $ 10 billion. Yarn, cloth, fabrics, and other products not made into garments. Alone, account for about 25 percent of Indias total forex earnings.


The need of management policies were to develop the economic growth of the country and to create a better working environment for the both workers and the management. In this paper certain management policies like Multi Fiber Agreement (MFA) and Agreement on Textiles and Clothing (ATC) were discussed and some suggestions are given for the future development also.



India's trade in textiles and its share in world trade at past can be categorized as follows:


After the successful conclusion of the Uruguay Round in 1994, the MFA was replaced by the Agreement on Textiles and Clothing (ATC), which had the same MFA framework in the context of an agreed, ten year phasing out of all quotas by the year 2005. The section that follows takes a brief look at the history of these protectionist regimes as also a more detailed look at the MFA and the ATC.