INDIA
“India is the cradle of human race, the birthplace of human speech, the mother of history, the grandmother of legend, and the great grandmother of tradition. Our most valuable and most astrictive materials in the history of man are treasured up in India only!” -Mark Twain LOCATION Southern Asia, bordering the Arabian Sea and Bay of Bengal, between Burma and Pakistan Next to Indian Ocean trade route SIZE 3,287,263 sq km ,7th largest country by area CAPITAL New Delhi POPULATION 1.2 billion, 2nd populous country in the world POPULATION GROWTH RATE 1.24% LANGUAGES English, Hindi TIME DIFFERENCE +9hrs, 30 mins SCHOOL LIFE EXPECTANCY 12 years
CURRENCY Indian Rupee $1=Rs.63.60 Rs.1= $0.016 GOVERNMENT TYPE Federal Republic, Democratic country since 1947 HEAD OF STATE Prime Minister Narendra Modi RELIGIONS Hinduism, Buddhism, Christianity, Jainism, Sikhism UNEMPLOYMENT RATE 3.6% POVERTY 29.5% LITERACY RATE 74.04%
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COUNTRY STABILITY ECONOMICALLY
From April’14 to March’15, the exports have decreased to 1684.08 USD Million. In the long term, the exports in India, 5 years from now, are projected to trend around 38178.55 USD Million in 2020.
The GDP value of India represents 3.03 percent of the world economy. India last registered its GDP reaching an all time high of 1876.80 USD Billion in 2013. By 2020, it is predicted to be 1995 USD Billion.
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The inflation rate in India was recorded at 5.17% in March‘15. It averaged 8.69% from 2012-2015. In 2016, it is expected to decrease to 2.41%. In the long term, the inflation rate is projected to trend around 2.81% in 2020.
SOCIALLY
India has a sensitive conflict with Pakistan. Culturally, the caste system of India clearly indicates a person’s status in the society so their manual or exhausting works are meant to the lowest level of status only. A number of reforms have been taken to improve the conditions of minimum wages and disability discrimination, which directly affect businesses.
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POLITICALLY With its many languages, cultures and religions, India is highly diverse. This is also reflected in its federal political system, whereby power is shared between the central government and 28 states. However, communal, caste and regional tensions continue to haunt Indian politics. From the late 1980s India began to open up to the outside world, encouraging economic reform and foreign investment. It is now courted by the world's leading economic and political powers. Being one of the largest democracies in the world, India has a federal form of government. “The government is fairly determined and is introducing changes to ease the process of doing business and attract investments in India while trying to rationalise and lower taxes�, Finance Minister Arun Jaitley said in March 2015. The current political outlook in India is reasonably exceptional due to the comparatively strong position of the ruling coalition. The present government, reelected in May 2009, has not any sort of strong challenges to face to its position and the coalition seems fairly united on the majority of issues. Present political government is continuously pushing its reforms agenda in a cautious way. Although corruption runs deep within the government and there is a stark diversity of politics, the government is generally stable, the economic boom is raising living standards and regional stability, and the government is in no threat at current or in the near future to collapse.
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LEAD-TIME OF PRODUCTION
Natural disasters also termed as ‘acts of God’ have caused immense damage to life and property in India. It takes years to rehabilitate people. Droughts, floods, famines, earthquakesIndia has been a victim to every form of destruction by nature. India, being a culturally diverse and fervent society, celebrates various holidays and festivals. Apart from over 20 public holidays varying from state to state, India has 3 main national holidays (Independence Day, Mahatma Gandhi’s birthday and Republic Day). Tsunami 2004: With the magnitude of 9.1–9.3, it was the third largest earthquake of the world recorded ever. Almost 227,898 people died. The earthquake had the longest duration of faulting ever observed, between 8.3 and 10 minutes. The huge waves of tsunami killed lakhs of people in South India, Sri Lanka, Andaman and Nicobar Islands.
Mumbai Ganesh Visarjan (Immersion): In Mumbai alone there are more than 150,000 statues that are immersed and there are four main routes where the Ganesh statues get immersed. This may affect the lead-time of production for ocean shipping.
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CONDUCTING BUSINESS IN INDIA Meetings should be arranged well in advance. This should be done in writing and confirmed by phone. Avoid meetings near or on national holidays. Punctuality is expected, although being 10 minutes late is acceptable. When entering a meeting room you must always aproach and greet the most senior figure first. Avoid commenting on matters like poverty or beggars.
Business dealings in India can be slow. Decisions are always made at the highest level. If owner or Director of the company is not present, chances are these are early stage negotiations. Listen carefully to Indians’ responses to your questions. Once terms have been agreed you will be expected to honor them. When negotiations end successfully continue the relationship building process with a celebration dinner.
If you are invited over to an Indian family’s home for food, take off your shoes/sandals and leave them outside Being 15-30 minutes late is considered good manners. In many Indian homes, women remain mostly in the kitchen. They see their contribution to be - making the guest feel at home in terms of the food they cook [or cooked under their supervision].
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INDIA’S APPAREL INDUSTRY HISTORY Indian textiles and apparel have a history of fine craftsmanship and global appeal. Cotton, silk and denim from India are highly popular abroad and with the upsurge in Indian design talent, Indian apparel has also found success in the fashion centers of the world.
CURRENT
India’s apparel industry has an advantage because it produces and exports stylish garments at economical prices due to cheap labor rates. Even because the technology is advancing, the manufacturers are being able to achieve better quality and well designed garments. Exports have been rising, as there is an increase in orders from global buyers. From all over the world retailers like Wal-Mart, Tesco, M&S, get attracted to India’s low production costs. China and Bangladesh are becoming costlier day by day, gradually garnering its share in apparel exports to the US. China is getting costlier because of its increased cost of production and Bangladesh is dealing with high rate of inflation and currency issues.“In the recent past, two major competitors of India, namely China and Bangladesh have drawn flak from global apparel importers, especially those from the US for increased cost of production and compliance issues. This has helped India garner increased favor among apparel importers which the domestic industry here is trying to make the most of,” said Rahul Mehta, president of Clothing Manufacturers’ Association of India (CMAI). The Indian government has included substantial investment in the textile and apparel sector in their 11th five-year plan. This includes investments in new textile parks and various investment incentives and training programs. A number of apparel retail brands such as Italian luxury brand Canali, British brand Superdry and American brand 7 Tommy Hilfiger have invested in long-term growth in India.
FUTURE OUTLOOK In the near future, India’s apparel exports to developed markets are expected to increase considerably. India has the potential to increase its textile and apparel share in the world trade from 4.5 % to 8% and reach US$ 80 million by 2020.
LABOR COSTS- APPAREL SECTOR Minimum wages of employees for different skill level are as following for the period of July 1, 2014 to December 31, 2014. Unskilled: Rs. 8,100 per month -($127.14) Semi-skilled: Rs 9,000 per month -($141.26) Skilled: Rs 9,900 per month -($155.39) Highly-skilled: Rs 11,000 per month -($172.65)
TRADE AGREEMENTS India does not have any free trade agreements with US. It is seeking new ones with the East Asian countries and the United States.
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INDIA APPAREL TRADE ORGANIZATIONS CLOTHING MANUFACTURERS ASSOCIATION OF INDIA(CMAI) The CMAI is the oldest and one of the most representative associations of the Apparel Industry in India. With a membership of over 20,000 manufacturers and retailers, CMAI branches in Pune/Bangalore/New Delhi. Established over 40 years ago, CMAI, has been acting as a catalyst of change, collaborating with the Government in matters of policy that impacts the future of the Apparel Industry. The CMAI also acts as a guide for its members on meeting various Government Regulations. www.cmai.in
TIRUPUR’S EXPORTERS’ ASSOCIATION INDIA The Tirupur Exporter’s Association was founded in the year 1990. This association exclusively caters to the exporters of cotton knitwear who have production facilities in Tirupur. The main aims of the association are growth in the exports of knitwear industry, development of infrastructural facilities in Tirupur and promoting cooperation among the workers. www.tea-india.org
GSP- India graduated from GSP in 2014. Indian textiles showed remarkable growth in value-added exports to India in the first three months of 2014. Indian knitted garment exports registered a quantitative increase of 25 percent, while its woven garment exports increased by whooping 50 percent in quantity.
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SUPPLIERS WITHIN INDIA DENIM BOTTOMS DENIM TOPS
ESJAY INTERNATIONAL PVT LTD
ATA SHANKAR APPARELS PVT LTD Urban Outfitters Inc, J Crew Group Salomi Robert +912225958065 atashankar@yahoo.co.in
ORIENT CRAFT LTD J Crew, Armani Exchange Sudhir Dhingra +91116812684 http://www.oclorp.com
RICHA GLOBAL EXP. PVT LTD Belk International Inc. Gaurav Uppal +91112817762 http://www.richagroup.com
Belk International Inc. Sunil Jhangiani +912224822300 http://www.esjayintl.com
INTIMATES BEST COOPERATION P LIMITED Hanesbrands Inc Rajkumar +914213980000 http://www.bestcorp.in
KNIT BOTTOMS SHAHI EXPORTS PVT LTD Kmart Cooperation, The Gap Inc. +911292273790 http://www.jaymeagh.com 10
TRANSPORTATION BERKLAY CARGO SERVICES
Average cost of shipping a container of garments from MUMBAI port to SAVANNAH port is $5000. If being delivered to a warehouse, then you will have to pay $300 additional. Customs Clearance Costs: ISF FILING and BOND: $175 US CUSTOMS CLEARANCE: $185 DUTIES: VARIABLE RANGING FROM 1%-40% CUSTOMS BOND: $12/$1000 Value HANDLING: $75 CONTACT INFORMATION: 14 Bond Street-Suite 233 Great Neck, NY 11021 516-872-3335 info@berklay.com
Lead time days:
15-25
SKY2C FREIGHT SYSTEMS INDIA PVT. LTD. NHAVASHEVA port to SAVANNAH port Container: 1x40GP Commodity: Apparels Ocean Freight: $3100 CONTACT INFORMATION: A-70 Ist Floor Synergy House Sector-2 Noida 201301 01204209130 gautam@sky2c.com
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BENEFITS
-High level of English -Growth of middle class -Experiencing growth due to economic liberalization -Inexpensive labor- hourly less than 5% from USA’s hourly wages
RISKS
-Tension with Pakistan -Developing infrastructure -Strikes leading to civic disturbances and violence
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WORKS CITED https://revivingindianeducation.wordpress.com/about/levels-or-stages-of-education-in-india-today/ http://www.bbc.com/news/world-south-asia-12557384_ http://www.ukessays.com/essays/economics/political-system-of-india-economics-essay.php#ixzz3ZbaSq12n http://www.answers.com/Q/How_stable_is_the_political_environment_of_India http://profit.ndtv.com/news/economy/article-indias-gdp-growth-rate-to-reach8-by-2017-world-bank-754785nd is expected to accelerate to 7.5% in fiscal year 2015-2016. http://www.academia.edu/9900523/ANALYSIS_OF_THE_FACTORS_AFFECTING_ THE_LEAD_TIME_FOR_EXPORT_OF_READYMADE_APPARELS_FROM_BANGLADESH_ PROPOSALS_FOR_STRATEGIC_REDUCTION_OF_LEAD_TIME http://www.kwintessential.co.uk/etiquette/doing-business-india.html http://www.indianmirror.com/indian-industries/garment.html). http://www.business-standard.com/article/economy-policy/india-pips-chinabangladesh-in-apparel-exports-growth-to-us-for-jan-sept-2014-114110600857_1. html http://apparel.edgl.com/news/opportunities-and-challenges-in-asia-s-apparel-and-textile-sector91123 http://www.ibef.org/exports/apparel-industry-india.aspx http://worldfreightrates.com/en/freight http://www.walesonline.co.uk/business/business-opinion/india-week-india-nowplace-7972227 http://cci.gov.in/images/media/ResearchReports/Apparel.pdf http://www.mbaskool.com/business-articles/marketing/5243-apparel-retail-industry-going-online.html
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PUNYA CHANANA