China-Indian Silk Trade: Current Production and Future Prospects

Abstract

As an important traditional labor-intensive industry of both India and China, the cocoon silk industry has long made great contributions to the ecological environment protection, rural economic development and the increase in export income of both countries. India is not only a very important cocoon silk trading partner, but an important production competitor of China. In recent years, there has been a large increase in the production and trade of the cocoon silk between China and India; however, China relies heavily on Indian market, which leads to a tendency of further deterioration in the silk trade environment between both countries. The present article makes an empirical study of the cocoon silk resources of the two countries and the scale, product mix and market structure of China–Indian silk trade from 2001 to 2007. Overall silk trading volumes from China to India and market concentration rate are on the increase because of the superiority of Chinese cocoon silk production over that of India. Owing to scattered market share and export that mainly focused on raw materials product, there has been a phenomenon of price reduction and quantity increase. India carries out fierce competition with China in the international market and even imposes antidumping sanction on Chinese silk, which are key factors restricting further increase between China–India trade. Based on the abovementioned facts, the authors aim to put forward suggestions for steadily developing the production and trade of China’s silk.