Silk Industry in India and China - A Comparative Business Environment Analysis

Topics: Silk, Silk Road, History of silk Pages: 22 (6500 words) Published: July 2, 2009

Silk Industry in India and China
-A Comparative Business Environment Analysis

Goa Institute of Management

Submitted by-
Kanishka Belani-2008017
Mariam Noronha – 2008021
Neha Gupta – 2008026
Parikshit Bhinde -2008028
Soutik Sarkar - 2008052

Silk Industry in India and China
-A Comparative Business Environment Analysis

Group Members (5A):
Kanishka Belani-2008017
Mariam Noronha – 2008021
Neha Gupta – 2008026
Parikshit Bhinde -2008028
Soutik Sarkar – 2008052

Submitted on 18th February 2009

Goa institute of management
ribandar – 403006

contact person:
Parikshit bhinde
Room 90,
Admin Block,
Goa Institute of management,
Phone: 9011607930
The objective of the paper is to provide a comparative analysis of the Business Environment factors to be taken in to account while starting up a small sized Silk Industry in India (Kancheepuram, Tamil Nadu) as against starting one in China (Guangzhou, Guangdong). There are some factors such as permissible Foreign Direct Investment and Export Policy that are same for all regions in the countries and others such as Labour Laws that are specific to the regions chosen within the countries. The bases of comparison2 are: a.Cost of labour and related factors.

b.Current technology and related factors.
c.Government support and Policies.
d.Credit Policy.
e.Export policy (Duties, Taxes, and Rebates etc.)
f.Foreign Direct Investment (FDI)
As per SWOT analysis, we conclude that India is the preferred choice for setting up the facility. Contents
Country Profiles 7
1.1 China8
1.2 India 8
Technology and Related Factors:8
1.3 India8
1.3.1 Role of the Central Government:8
1.4 China9
Labour Wages and Related Factors10
Getting Credit (World Bank, 2009)10
1.4.1 India10
1.4.2 China11
1.5 Investors Security11
1.5.1 External Factors11
1.6 Anti-dumping12
Foreign Direct investment12
1.7 India12
1.8 China13
1.8.1 Comparative analysis14
Government support and Policies14
1.9 India14
1.9.1 National Textile Policy14
1.9.2 Schemes for Powerloom Sector (Ministry of Textiles)17 1.9.3 Tamil Nadu Citizens’ Charter – 200518
1.10 China19
Export policy19
1.11 India19
1.12 China (Ministry of Commerce, People's Republic of China)20 1.12.1 Adoption of Preferential Policies20
1.13.1 Strength 21
1.13.2 Weakness21
1.13.3 Opportunities21
1.13.4 Threats21
1.14 CHINA 22
1.14.1 Strengths22
1.14.2 Weaknesses22
1.14.3 Opportunities22
1.14.4 Threats22
Works Cited23

a.Sector of operation: Silk industry (Silk Fabrics from yarn) for exports b.Type of production unit: Powerlooms based silk fabric manufacturing unit c.Startup: Private Limited Company
d.Local partners: None
e.Nature of organization: Profit
f.Production centre:
a.Kancheepuram3(Silk City) in Tamil Nadu, India
b.Guangzhou in Guangdong, China
g.Planned global market for output: United States of America h.Planned source of inputs and capital:

Yarn from domestic suppliers
Bank Loans, Bank Guarantees
Yarn from China
Bank Loans, Bank Guarantees
Table 1 : Sources of Capital and Inputs
Silk accounts for only 0.2% of world’s total textile production, but is labor intensive and high value product generating high income. Hence, it could be seen as a tool for employment generation in rural areas as well as a means to generate foreign exchange. (Central Silk Board) Rank

  (Int $1000)
Table 2: Top Cocoon Producers (2005) (FAO STATISTICS, 2006)
Country Profiles
China is the largest producer of silk (Table 2), accounting for approx. 80% of the silk by Weight. Sericulture Industry in China currently gives employment to...

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Central Silk Board
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Central Silk Board
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Guangdong to boost infrastructure
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