GLOBAL COUNTRY

STUDY REPORT ON
COTTON TEXTILE
INDUSTRY

GROUP MEMBERS
DIP ZALAVADIYA
HEMLATA KESHWANI
PRAKASH GABU
AAMIR HUSSAIN
RIDDHI GAJJAR

OVERVIEW OF HONG KONG

Hong Kong officially known as Hong Kong Special
Administrative Region of the People's Republic of
China.
It is an autonomous territory on the southern coast
of China at the Pearl River Estuary and the South China
Sea.
Hong kong is Asias world city.
Hong kong is worlds second biggest source of FDI
after U.S.
The world's 8th largest trading economy.

ECONOMY OF HONG KONG

Currency: Hong Kong dollar (HKD)

Fiscal years: 1 April-31march
Trade organizations: - APEC and WTO
Statistical
GDP: $ 381.3 billion (2013 EST.)
per capital rank: 8th
Nominal per capital rank: 25th (2010)
GDP growth: - 7.2% (2011)
GDP by sector: - agriculture :( 0.1%)
Industry :( 9%)
Service :( 90.9%)
Inflation (CPI):- 3.6% (2014)
Labour force :- 3.2343 million (end 2010)
Unemployment:- 3.4%

 External
Exports: $528.2 billion (2014)
Main exports partners: - china 54.8%
United States 9.3%
Imports: $560.2 billion
Main imports partners: - china 47.8%
7.1%
Singapore 6.1%

Japan

IMPORT AND EXPORT TRADE INDUSTRY IN

HONG KONG

TRADE RELATIONS BETWEEN INDIA AND

HONG KONG
India is a compelling trading partner of Hong Kong. In 2010, India was
Hong Kong's 7th largest dealing partner; 15th largest market for national
exports and 5th largest market for re-exports; and 9th largest source of
imports.
The average yearly growth rate in bilateral trade between Hong Kong
and India was 25% from 2006 to 2010. The bilateral trade between
Hong Kong and India increased by 39% from HK$104.9 billion in 2009
to HK$146.2 billion in 2010 (vis--vis an increase of 24% for Hong
Kong's total trade in 2010 against 2009).

LATEST NEWS AND DEVELOPMENT

Beijing pledges support for Hong Kong in 'One Belt, One Road'
regional economic plan.
Hong Kongs economy expanded by 2.8% year-on-year in real terms
in the second quarter of 2015, up from 2.4% in the previous quarter
of 2015, which was mainly attributed to the resilient house demand,
while the external sector remained weak.
For 2015, Hong Kongs external demand is normal to be constrained
by the unsteady global trade environment and unhurried recovery of
most economies
Yet the labour market surroundings remain tight. The seasonally
adjusted unemployment rate stood at 3.3% for July-September 2015,
close to the lowest level in 17 years.

JUSTIFICATION OF SELECTING TEXTILE

INDUSTRY
Following a 9% fall in 2014, Hong Kongs textile exports decreased
by 6% in the first five months of 2015
Experienced a decline of 6%, while domestic exports plunge by 41%.
With 75% of the textile re-exports originate from the Chinese
mainland, Hong Kongs re-exports of textiles of China origin
registered a decrease of 3% in January-May 2015.

STEEPLED ANALYSIS OF TEXTILE INDUSTRY

IN HONGKONG &GUAJRAT
HONGKONG

Political factors

- The political parties of Hong

Kong are at the initial stage of
their development.
-Political parties were illegal
until 1990.
- Out of its 60 members, only 20
members are directly elected by
popular votes.

Demographic factors

- The overall population of Hong

Kong is planned to increase to
7.15 million and 7.45 million in
2011 and 2012 respectively.
- The overall population increase
is mainly qualified to natural
births in Hong Kong and the
inflow of residents
- Average annual growth rate of
about 5%. By the end of 2011

GUJARAT
1) Tax incentives:A weighted tax deduction is
given under Section 35 (2AA) of
the Income Tax Act.
2) State incentive:-.
3) Export incentives:- Export
Promotion Capital Goods system
(PCGS).

-demographic changes are taking

place in india.
-Rural population in india in 1991
is thrice that in 1901, while urban
population in 1991 is 8 times that
in 1901.
-About 400 million Indians
comprise the working population
2001 as against 314 million in
1991.

Legal factors

Technological factors

-Hong Kong follows the economic

policies of free enterprise and free trade.
- There are no import tariffs, and revenue
duties are levied only on locally artificial
or imported tobacco,
- alcoholic liquors, methyl alcohol and
some hydrocarbon oils.
- There is also a tax payable on first
check of motor vehicles.

- It is important that apparel must also

give enough attention to its economic
stability.
- The financial goal of a certain industry
is like an axis in which other objectives
or goals are revolving.

- Hongkong also have invested heavily in

the most recent technology to increase
their product offerings.
- According to ITMF, Hong Kong textile
producers in 2013 added 4,826 flatknitting machines
- the largest investment in that category
and 7,656 false-twist spindles
ranking third behind China and India.

- Technology Upgradation Fund Scheme

has infused investment of more than INR
2500 Billion in the industry.
- Support has been provided for
modernisation and upgradation by
providing credit at reduced rates and
capital subsidies.
- Scheme for included Textile Parks
provides world class infrastructure to new
textile units.

- The economic factor involves the

context in which an industry belongs.
- the active demand of the products,
general economic condition of the nation
or area.

Ethical factors

Economic factors

-Fashion&development.
Fashion&awareness.
Standardsandlabelling.
Fastfashion,cheapfashion.
Childlabourissues.

- Ethical fashion can be defined as

the production of textile items
with a sense of right and wrong.
- The concept of ethical fashion is
old; however, it is gaining more
and more popularity in the modern
times.
-:- The production of cotton
entails the use of a large amount
of pesticides, which is harmful to
the environment and to people.

- GDP growth rate

- Exchange rate
- Raw material (cost and quality)

- Exchange rate:- GDP growth rate:- FDI and capital

-Labour:- Raw material

Environmental factors

- Textile production uses large

quantities of water and energy.
-- Chemicals
25% of chemicals produced
worldwide are used for textiles
Growing cotton: 8,000 45,000
litres / 1 kg cotton Finishing of
textiles: up to 700 litres of
freshwater / 1 kg textile
Wastewater in production: up to
600 litres / 1 kg textile.

Socio-cultural factors

- The chemicals that are used to

bleach and colour textiles can
harm the environment and peoples
health.
- Most of the textile machineries
cause noise, sound and air
pollution.
- Over-usage of natural resources
like plants, water, etc depletes or
disturbs ecological equilibrium.

- Structurally, one of the first

-Society and culture is an
laws to define people's
important factor that must be
relationships was the Hong Kong given emphasis by any business,
Matrimonial Ordinance passed in particularly those who are
1972.
operating in the global arena.
- There are also substantial
-Population growth rate
communities of Hakka, Fukien,
-Age distribution
Teochew and Shanghainese
- Career attitudes
people.
- Religion and culture itself

SWOT ANALYSIS OF TEXTILE INDUSTRY

IN HONGKONG & GUJARAT
Strengths

Hong Kong

GUJARAT

Rule of law
Efficient civil service
Service sector
Business friendly
environment including
low tax rate
Active and engaged civil
society
Free press
resourceful communication
and transport infrastructure
Lively retail and activity
sector

Gujarat is the biggest manufacturer of

the cotton.
Gujarat is biggest manufacturer of
cotton and produces yearly 1.50
million tonne.
Facility from raw material to
readymade garments.
Textile hub.
In Gujarat attendance of world class
mills like arvind, welspun.
Easily availability of labours.
Good professional skills & technical
skills.
Constant ease of use of power.

Weakness

Opportunities

Governments lack of
responsibility
Political gridlock
Legacy preference for vested
interests
Legacy barriers to mainland
visitors, students,workers,and
professionals
Fiscal dependence on
property revenues
disorganized urban training
Poor protection for air and
water.

The greeningof
Guangdong
Dominant position of
hongkong logistics suppliers
in Guangdong
Supply chain administration
for new industries
Drive to property values in
Guangdong
provider for creative finance
to mainland and global
markets
Creative industries

Cotton production of short and

medium staple.
Gujarat produces mainly short and
medium staple and depends on other
states or countries for finer varieties.
Lack of research and development.
Lack of knowledge up gradation.
Lack of skilled labours particularly
in weaving sector.
Short comings of small project.

Quota free regime.

Government schemes.
Technology Up gradation Fund
Scheme has infused investment of
more than INR 2500 Billion in the
industry.
Growing markets.
Presence of good entrepreneurs.
Implementation of appraisal parks.

Threats

Continued paralysis over

political reform
Pollution
Opposition to change by
vested interests
Structural unemployment as
major industries decline
Continued protection of
border barriers to Shenzhen

High power costs.

In Gujarat there is an Rs 6 per unit
price while in Orissa there is Rs 4 per
unit price.
High natural gas costs.
Changing trend of consumer.
Increasing rivalry from china as well
as countries like Pakistan etc..

OVERVIEW OF BIHAR
Bihar, the ancient land of Buddha, has witnessed golden period of Indian
history.
The state with its capital at Patna is situated on the bank of the river Ganga.

TOTAL POPULATION OF BIHAR

10,38,04,637
RANK: 3RD
(All India Census 2011)

LANGUAGE AND LITERATURE:

Bihari (Angika,Bajjika,Bhojpuri,Magahi, and Maithili), English, Hindi
Official language: HINDI

SWOT ANALYSIS OF TEXTILE INDUSTRY OF

BIHAR
Strength:
Availability of Low cost and Manpower provides spirited advantage to
industry.
All process of operation and cost chain.
Industry has diversified segments that supply wide variety of products.
Growing Economy and Potential domestic and worldwide market.
Industry has developed flexibility that helps to increase the productivity.

Weakness:

Textile industry is highly fragmented industry.

Lower productivity in various segments.
Lack of trade partisanship, which restrict to tap other potential market.
Lacking to generate economies of scale.
Very low investment on R&D
Less attention on man power training.
Poor quality standards.

 Opportunities:

Large, potential domestic and global market.

Product development and diversification to global needs.
The apparel, handicraft and other segment of the industry.
Supply chain management and information technology has a crucial role in
apparel manufacturing .

Threats:
Competition from other developing countries.
Continuous Quality development is need of the hour as there are different
demand patterns all over the world.
Forcing them for manufactured goods diversification.

FINDINGS

GUJARAT

HONG KONG

BIHAR

Gujarat is biggest
manufacturer of cotton and
produces yearly 1.50 million
tonne.
Good professional skills
& technical skills.
Constant ease of use of
power.
Lack of research and
development.
Lack of skilled labours
particularly in weaving
sector.
Technology Up
gradation Fund Scheme
has infused investment
of more than INR 2500
Billion in the industry.

Governments lack of

responsibility.
Poor protection for air and
water.
Dominant position of

Hongkong logistics suppliers

in Guangdong.
Supply chain administration

for new industries.

Structural unemployment as

major industries decline.

Pollution.

Lower productivity in various

segments.
Very low investment on R&D

Less attention on man power training.

Poor quality standards.

Supply chain management and

information technology has a crucial
role in apparel manufacturing .
Continuous Quality development is
need of the hour as there are different
demand patterns all over the world.

THANK YOU