India Afghanistan Tibet Iran
Pakistan Nepal Bhutan
Bangladesh
Shipping Companies
Myanmar
Mumbai Jawaharlal Nehru
Chennai Cochin Tuticorin
Sri Lanka
Strengths
2nd largest labor pool in the world High levels of savings & investment Solid foreign exchange rate Moderate external debt WTO credibility Gov’t support of textile industry Bargaining opportunity
Political Deep-rooted democratic principles Respect for freedom of expression & the media High corruption
Economic
Current account deficit has improved considerably since 2012 High tax rates Infrastructure bottlenecks Delay in passage of key reforms High insolvency & debt recovery status
40” container to Long Beach, CA from Mumbai 30-60 days at $3,500
Weaknesses
High tariffs Poor infrastructure Political instability Corruption Weak public finances Rising debt of private companies Lack of sustainability
Social
New National Urban Health Mission launched in 2013 to improve health of urban population Public expenditure on education remains low Low literacy rates
24% House linens 7.1% Non-knit women’s suits 6.8% Non-knit women’s shirts 5.9% Knit sweaters
Volume $
$1.88 billion $567 million $536 million $465 million
Well-maintained competitiveness in IT sector Industry poised to be worth $225 billion by 2020 Slow on securing patents
Apparel: Achiever Apparels Pvt. Ltd.
Customers: Chico’s Retail Services, Inc., Destination Maternity, Italian Connection
Government Support
Faathi Scheme Rise in overall wage rates Multi-Fibre Arrangement Technology Upgradation Fund Scheme As of June 2017, the central government is planning to finalize and launch the new textile policy, which aims to achieve US $300 billion worth of textile exports by 2024-25 and create an additional 35 million jobs.
Business Etiquette
Factors Impacting Production
Small talk is encouraged; avoid politics, religion, the caste system, the Kashmir region Send along a proposed agenda or supplemental materials in advance of the meeting Dress conservatively; jeans and business casual attire not recommended Do not disagree publicly with members of your negotiating team Arrive at meetings on time even though you may be kept waiting Defer to the most senior person in the room Remain calm even if tensions escalate
Kelly Murphy
FASM 420 Global Sourcing for Fashion
18,000 rupees ($281.19) per month
Customers: Ikea Distribution Services, Warehouse 460 Ikea Supply Ag, Michaels Stores Procurement
While there is still a duty on textile/apparel from India, participation in WTO raises credibility United States is one of India's largest trade and investment partners, good relations; see this continuing
Government support of industry New textile policies Advancement in technology Huge labor pool
65.17 Indian rupees (INR) per US dollar Good exchange rate for sourcing
Labor Costs
Textile: Mol Consolidation Service Ltd.
Bilateral Trade and Investment Agreement with the US Part of World Trade Organization
Political and social instability Lack of trade agreements Lack of sustainability Corruption
Currency Exchange Rate
Poor performer on Environmental Performance Index Dependence on thermal energy has resulted in host of environmental problems High share of greenhouse gas emissions
Customers: Homegoods, JC Penney Purchasing Corp., Newton Buying Corp.
6302 6204 6206 6110
Benefits
Ranked 130/189 in terms of World Bank’s 2016 Doing Business report Introducing more effective legal and administrative framework
Environmental
Textile: Damco India Pvt., Ltd.
Trade Deals
Risks
Legal
Main Suppliers
HTS
ID ID ID ID
Terrorism Natural disasters such as flooding & earthquakes Companies sourcing from countries with cheaper wage rates or trade deals with US
Technological
31-37 days at $3,500
HS92 HS92 HS92 HS92
Threats
Technological advancements for more efficient & cost effective production Trade deals Increased sustainability efforts
40” container to Savannah, GA from Mumbai
Exports to the United States Key Apparel/Textiles
0pportunities
National holiday: Republic Day, 26 January Terrorism: Indian Mujahedeen Droughts, flash floods, widespread and destructive flooding from monsoonal rains; severe thunderstorms; earthquakes
Strategies
Work with factories to improve sustainability Lobby for trade agreements Take advantage of labor pool
Suitable Apparel and Textile Productions House linens Non-knit women’s suits Non-knit women’s shirts Knit sweaters
Professor Donald Levy
Winter 2018