Exporter's perceptions to obstacles faced in the EU: evidence from Indian textiles and leather goods firms

Firms encounter barriers to exporting activity in foreign and domestic business environments. In this paper, based on primary research, we analyse barriers faced by Indian textiles as well as clothing and leather and footwear firms, in exporting to the European Union (EU). First, we document the manifold types of barriers that impact on Indian firms exporting to the EU. Second, using interview data we explore the relationship between perceptions of barriers to exports and firm characteristics. We find those firms closer to ports report lower transport costs and less corruption than firms further away from ports. Firm size, exporting experience, and whether the firm is from the textiles or leather goods industry have no significant impact on firms' perception of export barriers. Finally, we assess the policy implications of econometric results to shed light on issues that need addressing within ongoing negotiations for a free trade agreement between the EU and India.