admin – UK India Trade Project https://ukitp.org UK India Trade Project Wed, 13 Sep 2023 11:34:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.1.4 Indian Handmade Carpets in the UK Market: Prospects and Pitfalls https://ukitp.org/indian-handmade-carpets-in-the-uk-market-prospects-and-pitfalls/ https://ukitp.org/indian-handmade-carpets-in-the-uk-market-prospects-and-pitfalls/#respond Thu, 22 Jun 2023 15:12:59 +0000 https://ukitp.org/?p=532 Indian Handmade Carpets in the UK Market: Prospects and Pitfalls Read More »

]]>

The Nehru Centre in London, the cultural hotspot of The High Commission of India in the UK, hosted the ‘Woven Gems by Jocelyn Burton’ exhibition in May 2023. The collection showcased a range of handwoven carpets from India designed by Jocelyn Burton, a London-based jewellery designer, in collaboration with Jaipur Rugs (henceforth JR), a well-established carpet-manufacturing firm based in Rajasthan with over 40,000 artisans working for it.

The silk carpets on display were woven by over thirty carpet-weavers, mainly women from Rajasthan and Uttar Pradesh. The labour-intensive process of making carpets involves the work of many hands – from carding and spinning yarn, dyeing the yarn in an array of colours, weaving/ hand-knotting patterns on looms with meticulous precision, washing the carpets to enhance the underlying strength of the design, and subsequently finishing the process with a method called ‘Gultarash’, a technique that translates as ‘finding the flower’. This final stage involves assiduously trimming parts of the carpet to create a textured effect in order to accentuate the motifs and flower patterns in the design.

Take, for instance, the carpet named ‘Tapestry’ (image below). Drawing inspiration from Jocelyn Burton’s iconic Jerwood Necklace, this hand-knotted 6’6 ft x 10 ft carpet costs over £15,000 including import duty and haulage charges. The hefty price tag has to do with the nature of the fabric (silk) and the number of knots per square inch. The denser the knots, higher the price. The ‘Tapestry’ has 121 knots per square inch, hand-knotted by three female weavers on looms installed in their homes by JR over a period of six months.

This exhibition provided an analytical window into exploring the value chain for Indian handcrafted carpets in the UK market: from the hand-knotting artisans and contractors based in carpet-exporting regions in India to buying gents and customers in the UK.

From the perspective of Indian carpet-manufacturing firms, a number of sticking points emerge as far as trade with the UK is concerned. A high import duty on Indian hand-knotted carpets – a 20% VAT – has inhibited sales in the UK. Buyers who might be interested in purchasing Indian carpets are hard to access. They tend to be architects and/or interior designers based in the UK. They, in turn, recommend Indian carpet-making firms to their own clientele.

Indian carpet-making firms have found it difficult to woo UK-based buyers. Instead, they have turned to recruitment agencies to hire their ‘A&D Manager’ (Architects and Designers) who acts as an anchor point ‘on the ground’, connecting the firm with interior designers in the UK.

But, two problems arise. First, recruitment agencies tend to charge a double commission from both ends – employer and potential employee – often holding back on ‘good applicants’ at the first instance. The potential candidates for the job, based in the UK, tend to ask for a higher pay package compared to their Indian counterparts. Furthermore, some firms require their A&D Manager to undergo training in India in order to accurately represent the brand to foreign buyers. This has proven to be both costly and unproductive. Second, marketing strategies such as ‘cold calling’ designers for an appointment has proven to be ineffective.  More prospective methods include giving promotional ‘goodies’ to potential buyers; ‘constant engagement’ through social media channels (e.g. sharing catalogues on Instagram and LinkedIn); organising all-expense-paid brunches and dinners for interior designers to showcase the firm’s products.

There are additional challenges associated with promotions in the foreign market. Often, Indian firms rely on Public Relations (PR) agencies to make recommendations on social events to promote the brand in the UK market. This too poses challenges. For instance, privately hosted exhibitions do not necessarily generate the kind of ‘buzz’ and foot-fall of designers that a firm might be expecting, as is common in international trade expos such as ‘Salone in Milan’, that brings together designers and exporting businesses from across the world. Privately hosted  exhibitions can incur unanticipated expenses and overhead charges — building and dismantling frames on which expensive carpets are mounted, for instance, often entail hidden costs.

Well-established carpet-manufacturing companies in India that have an annual turnover of over two hundred and fifty crore Indian rupees (24 million pound sterling) are big players in India’s growing economy, both in terms of export and employment, especially for women, based in rural settings.

For Micro, Small and Medium Enterprises (MSMEs) in India’s carpet industry, however, the problems and prospects in exporting to the UK market are far more pronounced. Indian MSMEs have been at the forefront of bolstering India’s economic growth. Can MSME’s engaged in carpet-making in India overcome the export barriers? Does access to credit enable Indian MSMEs to successfully connect to global markets? And what role does social networks play in facilitating trade ties between MSMEs in India and the UK, especially in the context of the carpet industry. These questions are at the heart of ‘The Enablers and Obstacles for UK-India Trade’ project jointly undertaken by academics at King’s College London, Indian Institute of Management Bangalore, and non-academic partner Federation of Indian Chamber of Commerce and Industry (FICCI).

By Dr Humaira Chowdhury, Postdoctoral Research Associate at King’s India Institute, King’s College London.

Source: https://www.jaipurrugs.com/eu/rugs/sps-30-medium-sky-blue-blue-tapestry-rug

]]>
https://ukitp.org/indian-handmade-carpets-in-the-uk-market-prospects-and-pitfalls/feed/ 0
Guest lecture by Dr Sunil Mitra Kumar and Dr Kamini Gupta on ‘Enablers and Obstacles to UK-India Trade’, 3 March 2023. https://ukitp.org/guest-lecture-by-dr-sunil-mitra-kumar-and-dr-kamini-gupta-on-enablers-and-obstacles-to-uk-india-trade-3-march-2023/ https://ukitp.org/guest-lecture-by-dr-sunil-mitra-kumar-and-dr-kamini-gupta-on-enablers-and-obstacles-to-uk-india-trade-3-march-2023/#respond Fri, 03 Mar 2023 10:00:51 +0000 https://ukitp.org/?p=703 Dr Sunil Mitra Kumar and Dr Kamini Gupta delivered a guest lecture on 3 March 2023. This lecture was followed by an interactive session with 50 MBA students from the Indian Institute of Management Kozhikode who were taking part in a residential programme at King’s College London.

]]>
https://ukitp.org/guest-lecture-by-dr-sunil-mitra-kumar-and-dr-kamini-gupta-on-enablers-and-obstacles-to-uk-india-trade-3-march-2023/feed/ 0
Lecture by the Indian High Commissioner to the UK, His Excellency Vikram K Doraiswami on “India’s Foreign Policy and Trade Relations”, 9th February 2023. https://ukitp.org/lecture-by-the-indian-high-commissioner-to-the-uk-his-excellency-vikram-k-doraiswami-on-indias-foreign-policy-and-trade-relations-9th-february-2023/ https://ukitp.org/lecture-by-the-indian-high-commissioner-to-the-uk-his-excellency-vikram-k-doraiswami-on-indias-foreign-policy-and-trade-relations-9th-february-2023/#respond Thu, 09 Feb 2023 12:00:08 +0000 https://ukitp.org/?p=713 Lecture by the Indian High Commissioner to the UK, His Excellency Vikram K Doraiswami on “India’s Foreign Policy and Trade Relations”, 9th February 2023. Read More »

]]>
Against the backdrop of India’s presidency of the G20, and UK-India negotiations on a free trade agreement, King’s India Institute hosted India’s High Commissioner to the UK, His Excellency Vikram K Doraiswami for a lecture on “India’s Foreign Policy and Trade Relations” on 9th February 2023.

Following the lecture, a Q&A session was held, led by Dr Kamini Gupta (Lecturer, King’s Business School) and Dr Walter Ladwig (Senior Lecturer in International Relations, Department of War Studies). The lecture was introduced by King’s Principal and President, Professor Shitij Kapur.

The event was hosted in conjunction with the Economic and Social Research Council and Indian Council of Social Science Research funded grant Enablers and Obstacles for UK-India Trade: Banks and Diasporas (UKIT- Enob). UKIT-Enob aims to understand key enablers and obstacles to UK-India trade from the perspective of small export-oriented firms in India. The project is led by Dr Sunil Mitra Kumar (King’s India Institute) and Dr Kamini Gupta (King’s Business School) in collaboration with Dr Prateek Gupta (IIM, Bangalore) and Dr Param Shah (FICCI, UK).

Event details can be found here: https://www.kcl.ac.uk/events/indias-foreign-policy-and-trade-relations

]]>
https://ukitp.org/lecture-by-the-indian-high-commissioner-to-the-uk-his-excellency-vikram-k-doraiswami-on-indias-foreign-policy-and-trade-relations-9th-february-2023/feed/ 0
Expanding India’s global stamp: FTAs are the way to go if gaps are plugged https://ukitp.org/expanding-indias-global-stamp-ftas-are-the-way-to-go-if-gaps-are-plugged/ https://ukitp.org/expanding-indias-global-stamp-ftas-are-the-way-to-go-if-gaps-are-plugged/#respond Mon, 31 Oct 2022 14:11:30 +0000 https://ukitp.org/?p=683 Expanding India’s global stamp: FTAs are the way to go if gaps are plugged Read More »

]]>
This Op-Ed published in the leading Indian financial newspaper, Business Standard, argues for the potential of Free Trade Agreements in supporting growth in the long run, provided India can better integrate with Global Value Chains, and the challenges posed by complex ‘rules of origins’ that need to be overcome to do so.

Authors: Ketan Reddy, Subash S, Badri Narayanan Gopalakrishnan.

Read the full article here: https://www.business-standard.com/article/economy-policy/expanding-india-s-global-stamp-ftas-are-the-way-to-go-if-gaps-are-plugged-122103100688_1.html

]]>
https://ukitp.org/expanding-indias-global-stamp-ftas-are-the-way-to-go-if-gaps-are-plugged/feed/ 0
Innovative efforts and export market survival: Evidence from an emerging economy https://ukitp.org/academic-output-1-this-one-is-test/ https://ukitp.org/academic-output-1-this-one-is-test/#respond Sat, 29 Oct 2022 05:51:21 +0000 https://ukitp.org/?p=339 Innovative efforts and export market survival: Evidence from an emerging economy Read More »

]]>


Abstract:

We examine the role of innovation on the export market survival of Indian manufacturing firms. To achieve this objective, we source information on 1424 firms from the CMIE-Prowess database over 2001–2018. We find that firms investing in R&D experience a lower probability of exiting from export markets. In addition, multiple sub- sample analyses indicate the significance of R&D for small and medium firms export market survival. The findings are robust to endogeneity concerns.

Authors:

Ketan Reddy (Department of Economics and Public Policy, Indian Institute of Management Raipur, Raipur, India).

Subash Sasidharan (Department of Humanities and Social Sciences, Indian Institute of Technology Madras, Chennai, India).

Read the full article here: Innovative efforts and export market survival: Evidence from an emerging economy

]]>
https://ukitp.org/academic-output-1-this-one-is-test/feed/ 0
Female Entrepreneurship and the Digital Divide https://ukitp.org/female-entrepreneurship-and-the-digital-divide/ https://ukitp.org/female-entrepreneurship-and-the-digital-divide/#respond Thu, 06 Oct 2022 14:16:16 +0000 https://ukitp.org/?p=687 This Op-Ed published in Business Standard argues for the critical importance of female entrepreneurship and how access to digital technology can overcome long-standing barriers to female participation in entrepreneurship.

Authors: Ketan Reddy, Subash S, Badri Narayanan Gopalakrishnan.

Read the full article here: https://www.business-standard.com/article/economy-policy/female-entrepreneurship-and-the-digital-divide-122100600958_1.html

]]>
https://ukitp.org/female-entrepreneurship-and-the-digital-divide/feed/ 0
Public lecture by Professor Raghuram Rajan on “Why liberal democracy is needed for India’s economic development?”, at King’s College London on 6 July 2022. https://ukitp.org/public-lecture-by-professor-raghuram-rajan-on-why-liberal-democracy-is-needed-for-indias-economic-development-at-kings-college-london-on-6-july-2022/ https://ukitp.org/public-lecture-by-professor-raghuram-rajan-on-why-liberal-democracy-is-needed-for-indias-economic-development-at-kings-college-london-on-6-july-2022/#respond Wed, 06 Jul 2022 10:00:11 +0000 https://ukitp.org/?p=711 Public lecture by Professor Raghuram Rajan on “Why liberal democracy is needed for India’s economic development?”, at King’s College London on 6 July 2022. Read More »

]]>
Professor Raghuram Rajan is the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth. He was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016. Between 2003 and 2006, Dr. Rajan was the Chief Economist and Director of Research at the International Monetary Fund.

The lecture was co-organised by ‘Enablers and Obstacles to UK-India Trade’ project team and NISAU (National Indian Students and Alumni Union UK). It was followed by a panel discussion with project co-investigators Kamini Gupta and Sunil Kumar, followed by Q&A with the audience. A recording of the lecture was later broadcast by India’s leading English TV news channel, NDTV, in India.

A recording of the lecture is also available on YouTube:

 

]]>
https://ukitp.org/public-lecture-by-professor-raghuram-rajan-on-why-liberal-democracy-is-needed-for-indias-economic-development-at-kings-college-london-on-6-july-2022/feed/ 0
Does servicification of manufacturing increase GVC activities of firms? Case of India https://ukitp.org/showcasing-data-with-only-a-headline-6/ https://ukitp.org/showcasing-data-with-only-a-headline-6/#respond Wed, 29 Jun 2022 11:05:00 +0000 https://ukitp.org/?p=251 Does servicification of manufacturing increase GVC activities of firms? Case of India Read More »

]]>
 
 
Abstract:

Does greater use of services’ inputs in manufacturing increase the global value chain (GVC) activities of the firms? In this study, we analyse the effects of servicifica- tion on the GVC activities of manufacturing firms in India. Using panel data of 4608 Indian manufacturing firms from 2001 to 2018, we examine the effects of servicification of manufacturing firms on their decision to participate in GVCs. The study examines the overall service inputs in manufacturing activities and its impact on GVC activities of firms. The results indicate that servicification of manu- facturing tends to have a positive impact on GVC activities of firms. We also observe positive impact on Indian small and medium enterprises (SMEs) to participate in the GVC through the servicification of manufacturing. Further, the results also indicate the differential impact of servicifica- tion between high- and low-technology industries.

Authors:

Ketan Reddy (Postdoctoral Research Associate, King’s India Institute, King’s College London).

Subash Sasidharan (Department of Humanities and Social Sciences, Indian Institute of Technology, Madras, Chennai, Tamil Nadu, India)

Shandre Thangavelu (Institute of International Trade, The University of Adelaide, Adelaide, South Australia, Australia and Jeffrey Cheah Institute for Southeast Asia, Sunway University, Selangor, Malaysia).

Read the full article here: Does servicification of manufacturing increase the GVC activities of firms Case of India

]]>
https://ukitp.org/showcasing-data-with-only-a-headline-6/feed/ 0
Does digitalization spur global value chain participation? Firm-level evidence from emerging markets https://ukitp.org/showcasing-data-with-only-a-headline-8/ https://ukitp.org/showcasing-data-with-only-a-headline-8/#respond Mon, 04 Apr 2022 11:05:51 +0000 https://ukitp.org/?p=249 Does digitalization spur global value chain participation? Firm-level evidence from emerging markets Read More »

]]>

 

Abstract:

Does digitalization by firms spur participation in Global Value Chains (GVCs)? Rapid strides in informa- tion and communication technology (ICT) through cost-effective and reliable telecommunications have facilitated multinational firms to outsource complex production activities across borders over the years. While the rise of GVCs to prominence has coincided with the ICT revolution, there is very little sys- tematic empirical evidence at the firm-level documenting the nexus between digitalization of firms and their participation in GVCs. By using rich firm-level data for a sample of 24,839 firms across 52 countries spanning the period 2006–2018, we empirically test the importance of digitalization in deepening GVC participation. After correcting for potential biases arising from self-selection and reverse causality, our empirical analysis shows that digitalization by firms positively influences GVC deepening. Our results are quite robust to various measures of GVCs and digitalization. Further, we also document how digitalization boosts GVC integration of firms that are financially constrained.

Authors:

Sasidaran Gopalan (Assistant Professor in the Department of Innovation in Government and Society, College of Business and Economics at United Arab Emirates University (UAEU), Abu Dhabi, United Arab Emirates).

Ketan Reddy (Post-Doctoral Research Associate at King’s India Institute, King’s College London, UK).

Subash Sasidharan (Associate Professor of Economics at the Department of Humanities and Social Sciences, Indian Institute of Technology Madras (IITM), India).

]]>
https://ukitp.org/showcasing-data-with-only-a-headline-8/feed/ 0
Servicification and global value chain survival: Firm-level evidence from India https://ukitp.org/showcasing-data-with-only-a-headline-7/ https://ukitp.org/showcasing-data-with-only-a-headline-7/#respond Sat, 29 Jan 2022 11:05:36 +0000 https://ukitp.org/?p=250 Servicification and global value chain survival: Firm-level evidence from India Read More »

]]>

 

Abstract:

In this article, we study the role of servicification in sustaining global value chain participation. To empiri- cally analyse the role of firm servicification on GVC survival, we draw information from a sample of 1,227 Indian manufacturing firms over 2001–2018. We use a complementary log–log model and find that higher ser- vicification is associated with a lower hazard rate. Moreover, we account for the reverse causality in the model using a two-stage residual inclusion method and correct for self-selection using the propensity score matching estimator. Our finding of servicification aiding GVC survival remains robust to the endogeneity concerns. Further, our analysis also underscores the importance of servicification for sustaining GVC partic- ipation for firms with short-trading spells.

Authors: 

Subash Sasidharan (Department of Humanities and Social Sciences, Indian Institute of Technology Madras, Chennai, India).

Ketan Reddy (Postdoctoral Research Associate, King’s India Institute, King’s College London).

Read the full article here: Australian Economic Papers – 2022 – Reddy – Servicification and global value chain survival Firm‐level evidence from India

]]>
https://ukitp.org/showcasing-data-with-only-a-headline-7/feed/ 0