This study aims to examine whether export competitiveness (EC) in the two groups of the Indian textile industry i.e. “textiles” and “textile products” group differ.,The study examines how exchange rate (ER), real effective exchange rate (REER) and EC of both the groups are related in the long run over the period 1991-1992 to 2018-2019 using Granger causality test and Johansen and Juselius co-integration test.,The study confirms that EC is a challenge that needs to be addressed to sustain in the international market, as the volatile trend can be found for EC in both groups. The econometric framework shedding light on both groups of the textile industry suggest that select determinants have different relationships with the EC for two groups. The findings of the Granger causality test reveal that the presence of unidirectional causality running from ER to EC in the case of both the groups. Also, the select variables are found to be co-integrated in the long run. However, in the case of REER, no causality is found running from REER to EC.,ER is a vital determinant of EC and exporters can sustain competitiveness in global markets by reducing their profit mark-up in the face of an appreciating currency.

中文翻译：

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为什么印度纺织业的出口竞争力有所不同？决定因素和经验证据

这项研究旨在检验印度纺织工业这两个类别（“纺织品”和“纺织品”）中的出口竞争力（EC）是否不同。该研究探讨汇率（ER），实际有效汇率（REER）使用Granger因果关系检验以及Johansen和Juselius协整检验，从长期来看，这两个群体的EC和EC在1991-1992年至2018-2019年之间都是相关的。研究证实，EC是一个需要解决的挑战可以在国际市场上保持稳定，因为在这两组中欧共体都可以找到波动的趋势。计量经济学框架对纺织工业的两个群体都有所启示，这表明选择的决定因素与两组的EC有不同的关系。Granger因果关系检验的结果表明，在两组之间，从ER到EC都存在单向因果关系。而且，从长远来看，选择变量被发现是协整的。但是，就REER而言，没有发现从REER到EC的因果关系。ER是EC的重要决定因素，出口商可以通过面对货币升值而降低利润幅度来维持其在全球市场上的竞争力。