Changing Structure of The Textile Industry After the MFA Phase-Out: A Study of Kerala’s Traditional Handloom Sector

Abstract: The termination of the Multi Fibre Arrangement (MFA) in 2005 marked a significant shift in global textile trade dynamics, introducing a quota-free regime that intensified competition. While India capitalized on expanded export opportunities, traditional sectors like Kerala's handloom industry faced substantial challenges. This study examines the post-MFA structural transformations within Kerala's handloom sector, focusing on institutional frameworks, market integration, and socio-economic impacts on weavers. The study adopts a descriptive and analytical research design based exclusively on secondary data sources. Findings reveal that despite institutional support, the sector grapples with issues such as limited market access, inadequate technological adoption, and declining youth participation. The study underscores the necessity for targeted policy interventions to revitalize this traditional industry.