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Current News
Railway Budget 2016: In Poll Season, A Tough
Balancing Act for Minister Suresh Prabhu
Rail Minister Suresh Prabhu will walk the tightrope as he
presents the Railway Budget at noon today. With elections
due in five states, he has to balance populist measures with
the cash-strapped Railways urgent need for finances to fund
modernisation and better passenger facilities.
The question being asked hours before the Railway Minister
presents his annual budget - will he bite the bullet and raise
passenger fares and freight?
Junior Rail Minister Manoj Sinha would only say on Thursday
morning, This is the budget to transform the Indian Railways.
You have to wait for some time.
This will be the second Railway Budget presented by Mr
Prabhu, a 62-year-old Chartered Accountant hand-picked by
Prime Minister Narendra Modi to script a turnaround for the
Indian Railways, the worlds fourth largest.
Last year, he did not raise fares but made headlines by
announcing not a single new train.
Two senior government officials told Reuters that raising freight
tariffs significantly is not on the cards today, and that a steep
rise in passenger fares in Thursdays railway budget is also unlikely as fewer-than-expected travellers catch the train and an
industrial slowdown crimps the growth of freight.
-Shuchi Shukla

Country Traits
India: Located in South Asia

Capital: New Dehli

Population: 1,276,267,000

Government: Federal Repbulic

Prime Minister: Narendra Modi

Minimum Wage: 93.75 Rupees/Hr

Main Languages:
Hindi - 41.03%
Bengali - 8.11%
Tamil - 5.91%
Urdu - 5.01%
Gujarati - 4.48%
Nepali - 0.28%
Sindhi - 0.25%

Gender Breakdown Ratio:

Birth - 1.12 Male/Female

01-14 - 1.14 Male/Female
15-24 - 1.09 Male/Female
25-64 - 1.06 Male/Female
65 - Up - 0.908 Male/Female
Total: 1.08 Male/Female

Religions:

Hindu - 80.5%
Muslim - 13.4%
Christian - 2.3%
Sikh - 1.8%
Buddhists - 0.8%
Jains - 0.4%
Others - 0.8%
Median Age:
25.1 Years

Ethnic Composition:

Indo-Aryan 72%
Dravidian 25%
Mongoloid & Other 3%

Import and Export Volume

Exports: $311 Billion
Imports: $448 Billion
Countries India Exports To:
United States, United Arab Emirates, Singapore, China, Hong Kong,
Saudi Arabia, Netherlands, United Kingdom, Germany, Brazil
What does India Export?
Petrolium, Gems & Jewelry, Pharma Products, Machinery & Instruments,
Readymade Garments, Electronics, Rubber/Glass Products, Cotton, Yarn &
Fabrics.
Countries India Imports From:
China, United Arab Emirates, Saudi Arabia, United States,
Switzerland, Iraq, Qatar, Kuwait, Germany, United Kingdom
What does India Import?
Petrolium Crude, Gold & Silver, Electronics, Pearls & Precious Stones,
Organic & Inorganic Chemicals, Coal/Coke/Briquettes, Iron & Steel

Economic Overview
GDP Per Capita: 1,820
Labor Force: 502.3 Million
-Agriculture: 495
-Industry: 20%
-Services: 31%
Unemployment: 4.90%
Inflation Rate: 2.0%
Budget Deficit: 3.9% of GDP
Public Debt: 64.9% of GDO
Exchange Rate: 1 Indian Rupee = 0.015 USD
Main Industries of India:
Software, Petroleum Products, Chemicals, Pharmaceuticals,
Agriculture, Transporation Equipment, Machinery, Leather,
Cement, Mining, Construction

Country Stability
Political
Narendra Modis win as Prime Minister was a major win for the Bharatiya
Janata Party. Young Indians are very frustrated with the poor government in
India and Modis goal is to ensure the minorities that they will be safe, secure,
and successfu in his India.

Economic
In the year 2015, Indias economy grew at an even faster pace than Chinas.
The rupee has gained value against the US dollar while other countries, like
South Africa and Brazil, have lost value. Oil imports are rising and prices
falling, which proves to be a big win for businesses and consumers.

Social
India increased the attendance rate and expanded the literacy rate of the
7-10 age group over the last few years. As far as healthcare, Narendra Modi is
working to grow the pharmaceutical sector in the healthcare industry.

Technology
Indias IT industry cost competitiveness is 3-4 times cheaper than the US.
India is gaining prominence in the IT world by setting up global firm centres
throughout the country. This has gained the attention of major countries that
want to make investments in Indias IT industry.

Environmental
Transportation and fuel economy standards need major attention in India
as road, air, and railway travel is heavily used throughout the country. Also
energy costs are high so they are developing mini-power stations to address
the situation.

Political Stability Factors

India and the US
India and the United States hold a strong relationship. In 2015, President
Barack Obama became the first US President to be the chief guest of the
66th Republic Day celebrations of India. India and the US held their first
ever bilateral dialogue on the UN and multilateral issues in the spirit of the
Delhi Declaration of Friendship that strengthens and the expands the
relationship between these two countries.

Future Government Plans

Prime Minister Narendra Modi has many plans to improve India. Modi plans
to revamp Indias restrictive business regulations and plans to improve the
national infrastructure. If all goes well with Modis plan, India could become
the next leading player economicaly, financially, and politically.

State of the Textile and Apparel Industry

India is one of the worlds largest producers of the textiles and
apparel industries.
India is the largest cotton producer in the world and the second
largest textile manufacturing capacity globally.
The Indian textile industry accounts for about 20% of the worlds
spindle capacity and 10% of global rotor capacity.
India accounts for about 13% of the worlds production of textile
fiber and yarn and is the largest producer of jute and cotton, and
the largest producer of silk.
The Textile Association of India expects textile and apparel
exports to reach $80 billion by the year 2020.
In India, the textiles sector is teh second largest provider of
employment after agriculture.
India has a significant lead in terms of labor cost per hour over
countries like the US, Hong Kong, Taiwan, South Korea, and China.
India and China are currently competing the same premium
segment of apparel and home textiles. Given Indias established
prescence in the segment, this could gain India a large market share
in US apparel imports.

Trade Agreements
Signed and In Effect

Date Signed

Entry into Force

APTA

07/31/1975

06/17/1976

India-Sri Lanka FTA

12/28/1998

12/15/2001

Indo-Nepal Trade Treaty

12/06/1991

03/06/2002

03/06/2003

05/13/2003

India-Singapore CECA

06/29/2005

08/01/2005

SAFTA

01/06/2004

01/01/2006

India-Afghanistan PTA

India-Bhutan Trade Agreement 07/28/2006

07/29/2006

India-Chile PTA

03/08/2006

09/11//2007

India-MERCOSUR PTA

01/25/2004

06/01/2009

India-Republic of Korea CEPA 03/23/2006

01/01/2010

ASEAN-India CECA

08/13/2009

01/01/2010

Malaysia-India CECA

02/18/2011

07/02/2011

Japan-India EPA

01/31/2011

08/01/2011

Trade Agreements
Signed and In Effect

Negotiations Launched

India-Egypt PTA

10/01/2002

India-Israel PTA

01/01/2006

India-EU FTA

06/28/2007

India-SACU PTA

10/06/2007

India-EFTA FTA

01/26/2008

New Zealand-India FTA

04/07/2010

India-Canada EPA

11/16/2010

India-Austrailia FTA

07/28/2011

India-Indonesia CECA

10/04/2011

India-Customs Union
of Russia, Belarus, and
Kazakhstan FTA

04/03/2013

RCEP

05/09/2013

Country Transportation
BY SEA:
India has 13 majors ports and 199 minor and intermediate ports along the
coastline. These ports play a significant role in improving foreign trade in
a growing economy. Ships transporting cargo from India to North America
generally has a lead time ranging from three to five weeks.

BY AIR:
India has 128 airports throughout the country. The growth of passenger
and cargo air traffic has caused a strain on the major airports throughout
India. The aviation industry in India is currently the 9th largest in the world.

BY LAND:
In India, roads are the most dominant mode of transportation. 85 percent
of the countrys passenger traffic and 60 percent of freight is moved via
the roads. Along with Indias highways, there is also a major railway.The
Indian railways plays a leading role in carrying passengers and cargo across
India.

Main Suppliers
Orit Apparels Lanka (Pvt) Ltd.

Damco India Pvt, Ltd.

07-02, East Tower, WTC, Echelon Square,

Colombo, Sri Lanka, India

Peetal Basti Rampur Rd Moradabad

U P 244001

Telephone: +91 9411234670

Telephone: +91 912233088200

Customers:
Levi Strauss & Co.
Goodys Ms, L.P.
Jones Jeanswear Group Inc.

Customers:
Damco Usa Inc.
Homegoods Inc.
JC Penny Purchasing Corp.

Top Products:
Pants, womens wvoven, woven denim pants,
mens woven denim pants

Top Products:
Cotton, glass, bottles

Classic Knits

Eastman Exp. Global Clothing (P)

Alangadu Mangalam Rd Tirupur

Tamil Nadu 6410604 Teindia

591, Sri Lakshmi Nagar, Pitchampalayam

Pudur, Tirupur, Tamil Nadu, India 64603

Telephone: +91 914212247488

Telephone: +91 914214301234

Customers:
Hanesbrands Inc.
Espirit US Distribution Ltd.
Hanesbrands Inc. Outerwear Division

Customers:
The Gap Inc.
Old Navy, Lic
Ben Sherman Clothing

Top Products:
Cotton, knitted mens boxers, mens boxer
briefs

Top Products:
Womens clothing, mens clothing, kids
clothing

Shipping Resources
Asia Pacific Logisitcs

Maersk Line India Pvt. Ltd

Kukreja Plaza, Office No-107, A-Wing,

1st Floor, Sector 11, CBD Belapur,
Navi Mumbai, India 400614

Building 9 A Cybercity,
DLF Phase 3,
Gurgaon, Haryana, 122002

+91 9320204477

+91 783852448

Lead Time - India to Savannah: 29 Days

Lead Time - India to New York: 33 Days

Cost: $3,962 - $4, 2,40

Cost: $3,045 - $3, 460

ZIM World Freight Pvt. Ltd

Jumbo Shipping VOF, India

1211, 12th Floor, Ansal Tower, 38,

Nehru Place, New Dehli,
Dehli, 110019

S57 Vatika Business Centre, Supreme

Business Park, Mumbai,
Maharashtra, India 400076

+91 1151674046

+91 2242019139

Lead Time - India to LA: 21 Days

Lead Time - India to Seattle: 23 Days

Cost: $2,975 - $3,340

Cost: $3,155 - $3,780

Lead Time
Holidays

Independce Day - January 1st

Republic Day - January 26th
Mahshivratri - March 7th
Holi - March 22nd
Good Friday - March 25th
Easter Monday - March 28th
Mahavir Jayanti - April 20th
Buddha Purnima (Buddhas Birthday) - April 21st
Eid al-Fitr (End of Ramadan) - July 7th
Krishna Janmashtami - August 25th
Eid al-Adha (Feast of Sacrifice) - September 13th
Mahatma Gandhis Birthday - October 2nd
Muharram (Islamic New Year) - October 3rd
Dussehra (Vijaya Dashami) - October 11th
Diwali (Festival of Lights) - October 30th
Guru Nanak Jayanti - November 14th
Milad un Nabi (Birth of the Prophet Muhammad) - December 12th
Christmas Day - December 25th
Boxing Day - December 26th

Climate
India has a wide variety of climatic regions that range from tropical wet, tropical dry,
subtropical humid, and mountain climate. Winter lasts from December to March and this is
when India has its coldest weather. Summer, or pre-monsoon season, lasts from April to
June. Monsoon season is from July to September and humid temperatures go along with
the monsoon weather. Post-monsoon season lasts from October to November. Along with
the intense, varietys of climate changes, India does endure climate-related natural disasters
throughout the year. Floods and landslides are common disasters in India. These mainly
happen during the monsoon season. During the summer, cyclones can be a problem. The
intense heat and rising humidity and unstable air cause these cyclones. Also, India is known
to endure droughts and heat waves. These are mainly in the desert regions of India but have
caused many deaths, ruined crop fields, and caused water shortages.

Conducting Business
In India, it is seen as respectful to do a handshake as a way of
greeting. However, Indians typically use the namaste (bowing
of the head while the hands are palm facing at chest level). It
is better for those doing business in India to use the namaste
because it shows that they have knowledge of Indian business
ettiquette.
When dining with potential business partners in India, it is
important to remember to wash your hands before the meal, do
not sit until you are instructed, never use your left hand, only
eat with your right hand, and leave food on your plate.
When conducting business meetings in India, they should
be planned well in advance but also be done in writing and
confirmed over the phone. Remember to not plan meetings on
our around any of the national holidays.
When entering a meeting, puntuality is expected and always
greet the senior figure first. It is best to start off meetings with
casual conversation but be sure to avoid talking about personal
matters or commenting on the poverty and beggars in India.
As far as negotiations go, it is important to know that Indians
must feel like that can trust you before they agree to any kind
of negotiation. Make sure to avoid high pressure tactics, avoid
confrontation, and do no be forceful.
It is rude to just say no in India, so if they use the terms
possibly or well see, it is more than likely their way of
saying no.

Risks and Benefits

Risks
Lower productivity and cost competitiveness
Fragmented industry
Flucuation in rupee value
Competition from global players
Benefits
Low cost skilled labor
Abundant raw material availability
Growing domestic market
Presence across value chain

Works Cited
http://www.facts-about-india.com/transportation-in-India.
php
http://www.cci.in/pdfs/surveys-reports/textile-industry-in-india.pdf
http://www.makeinindia.com/sector/textiles-and-garments
http://web.worldbank.org/archive/website01291/WEB/0__
CO-21.HTM
http://fortune.com/2015/01/25/india-the-next-superpower/
https://www.equitymaster.com/research-it/sector-info/textiles/Textiles-Sector-Analysis-Report.asp
https://aric.adb.org/fta-country
https://panjiva.com/Damco-India-Pvt-Ltd/28295076?q=Women+Apparel
https://panjiva.com/Orit-Apparels-Lanka-Pvt-Ltd/1336729?q=Women+Apparel
http://www.freightnet.com/directory/p2/cIN/s1.htm

Works Cited
http://www.indexmundi.com/india/demographics_profile.
html
https://en.wikipedia.org/wiki/Demographics_of_India#Ethnic_groups
https://www.jahajee.com/shipping-companies/MUMBAI_
INDIA/
http://www.thehindu.com/data/what-do-indias-latest-export-and-import-figures-tell-us/article7326453.ece
http://www.tradingeconomics.com/india/exports
http://www.theguardian.com/news/datablog/2013/feb/22/
cameron-india-trade-exports-imports-partners
http://www.focus-economics.com/countries/india
http://www.ibef.org/industry.aspx
https://en.wikipedia.org/wiki/Economy_of_India
http://profit.ndtv.com/news/budget/article-railway-budget-a-tough-balancing-act-for-minister-suresh-prabhu-1281060?pfrom=home-lateststories

Global Sourcing
Chelsea Baldwin