Ethnic Enterprise in the Decentralised Textile Industry of Surat, India

Abstract

The paper explores the role of ethnic networks in the contemporary art silk industry of Surat, Gujarat, India’s largest production centre of synthetic fabrics. It is argued that one of the secrets of its success is a system of ethnic entrepreneurship in which business people rely on informal networks based on ties of kinship, caste, sect and place of origin. Participation in these flexible networks gives merchants and manufacturers access to community resources, and allows them to minimise costs, adapt to market fluctuations and avoid government restrictions. Examples are given from four business communities to illustrate how the industry functions.