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

2/18/2009
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
Goa

contact person:
Parikshit bhinde
Room 90,
Admin Block,
Goa Institute of management,
Ribandar-403006
Goa
Email: parikshit.bhinde08@gim.ac.in
Phone: 9011607930
Abstract1
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
Introduction7
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
Conclusion20
1.13 SWOT ANALYSIS OF INDIA20
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

Introduction
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:

Inputs
Capital
China
Yarn from domestic suppliers
Bank Loans, Bank Guarantees
India
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

Country
Production   
Production   
  (Int $1000)
  (MT)
1
China
978,013
290,003
2
India
259,679
77,000
3
Uzbekistan
57,332
17,000
Table 2: Top Cocoon Producers (2005) (FAO STATISTICS, 2006)
Country Profiles
1.1China
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...

Cited: Adsale industry portal. (2009, 02 09). New Policies taking shape to support chinese textile industry. Retrieved 02 16, 2009, from China Textile and Apparel: http://textile.2456.com/eng/feature/details.asp?fsiid=4&fsid=3039&e=1
CCCT
CCPIT TEX. (2006, 11 20). The Eleventh Five Year Plan for the Chinese Textiles Industry. Retrieved February 15, 2009, from CCPIT TEX: http://www.ccpittex.com/eng/texInfo/7624.html
Central Silk Board
Central Silk Board. (n.d). CSB Services. Retrieved February 15, 2009, from Central Silk Board: http://www.indiansilk.kar.nic.in/csb_services.html
Central Silk Board
Central Silk Board. (n.d.). Silk. Retrieved 02 16, 2009, from Central Silk Board: http://www.indiansilk.kar.nic.in/body_silk.html
Chen and Co
China. (n.d.). Retrieved February 15, 2009, from 2009 Index of Economic Freedom: http://www.heritage.org/index/Country/China
China Internet Information Center
China labour laws not right for India. (n.d.). Retrieved February 15, 2009, from TOI: http://timesofindia.indiatimes.com/articleshow/754805.cms
Craig Doidge, G
Emerging Textiles. (2008, 05 23). Apparel Manufacturing Labor Costs in 2008 . Retrieved 02 16, 2009, from Emerging Textiles: http://www.emergingtextiles.com/?q=art&s=080523-apparel-labor-cost&r=free
Ernst & Young, China
Franklin Towers Enterprise. (n.d.). Executive Summary. Retrieved February 11, 2009, from Franklin Towers Enterprise site: http://www.franklintowersenterprises.com/Qiluo-ExecutiveSummaryv12.pdf
Guangdong to boost infrastructure
Henley, J. S. (2004, October). Chasing the dragon: accounting for the under-performance of India by comparison with China in attracting Foreign Direct Investment. Journal of International Development , 1039-1052.
Heritage Foundation & Wall Street Journal. (2009). Heritage Foundation & Wall Street Journal. Retrieved 02 16, 2009, from Heritage Foundation & Wall Street Journal: http://www.heritage.org/index/Country/China
India Mart
IndiaMart. (n.d). Exim Policy. Retrieved Feb 10, 2009, from India Finance & Investment Guide: http://finance.indiamart.com/exports_imports/exports_from_india/
Indian Silk Export Promotion Council
Jianmo, H. (2002, 11 08). Seminar. Retrieved January 29, 2009, from Thai Textile Institute Site: http://www.thaitextile.org/data/seminar/021108silk/
Man, T
Ministry of Commerce and Industry. (2008). Foreign Trade Policy. New Delhi: Directorate General of Foreign Trade.
Ministry of Textiles. (n.d.). Policies / Schemes. Retrieved February 10, 2009, from Ministry of Textiles site: http://texmin.nic.in/policy_scheme.htm
National Development and Reform Commission, Ministry of Commerce
Policy Note 2006-2007, Handlooms and Textiles, Tamil Nadu. (n.d.). Retrieved Feb 15, 2009, from Government of Tamil Nadu Website: http://www.tn.gov.in/policynotes/archives/policy2006-07/hhtk.htm
POWERLOOM DEVELOPMENT & EXPORT PROMOTION COUNCIL
RBI. (2009, 02 16). Reserve Bank of India. Retrieved 02 16, 2009, from Reserve Bank of India: www.rbi.org
Silk Department
What India must do to modernise. (n.d.). Retrieved February 15, 2009, from VOX: http://www.voxeu.org/index.php?q=node/868
Wikipedia
Wikipedia. (n.d.). Silk Industry in China. Retrieved Feb 10, 2009, from Wikipedia site: http://en.wikipedia.org/wiki/Silk_industry_in_China
Wikipedia.org
World Bank. (2009). Doing Business in India. Washington: World Bank.
World Bank. (2009). Doing Bussiness in China. Washington: World Bank.
Zhiming, X. (2008, 12 22). China Daily. Retrieved 02 16, 2009, from China cuts benchmark interest rate by 27 basis points: http://www.chinadaily.com.cn/bizchina/2008-12/22/content_7328966.htm
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • how do business in china Essay
  • Business Environment
  • Business Environment Analysis Essay
  • the business environment Essay
  • India and China Comparative Economic Analysis Essay
  • India- China BUSINESS Environment shift Essay
  • International Business China And India Essay
  • Essay on Poverty: Comparative Analysis of China and India

Become a StudyMode Member

Sign Up - It's Free