How to Start Silk Business in India? Steps, Process & more

. 5 min read
How to Start Silk Business in India? Steps, Process & more

Silk Business Plan

The silk industry is regarded as one of India’s oldest industries and is also an important part of the Indian textile segment. The industry engages about 60 lakh workers of the Indian population. Silk weaving is done through sericulture or the rearing of mulberry plants, nurturing the silk insect, and eventually developing cocoon by procedures like twisting, dyeing, weaving, printing, and finally finishing off the product. Indian states like Andhra Pradesh, Karnataka, Tamil Nadu, Jharkhand, Madhya Pradesh, and Assam are known as the country’s largest silk producers. The silk industry is considered a heavy industry as it has a vast production capacity and involves many resources and infrastructure for its production. The silk industry captures a majority of the domestic market.

However, in recent years, it has been observed by industry experts that the silk industry in India is experiencing particular challenges. Some of them are listed below:

  • The high cost of production
  • Use of outdated technology in production
  • Occurrence of droughts
  • Competition from other fabrics
  • Inflation and the rise in prices
  • Difficulty in managing huge manufacturing plants
  • Lack of knowledge about scientific and modern techniques in production

But, we have also observed that the demand for silk in India is still rising, and the onset of social media platforms like Facebook and Youtube is also paving the way for the silk business. To start a silk business, entrepreneurs need to explore the market thoroughly. For starting a silk business in India, we should keep the following pointers in mind:

  • The first step to start the silk business requires an in-depth knowledge of the market.
  • Demographics, habits, and patterns of the potential customers
  • The location of the store or outlet should be in an immediate locality or the market area.
  • Finding direct suppliers of silk
  • Making use of the internet to grow one’s silk business

Current Scenario for Starting One’s Own Business

In the current situation of the COVID-19 pandemic, people worldwide are wary of starting their own business. There are certain apprehensions and fears stopping people from starting their ventures in these tough times. However, the Government is making maximum efforts to support owners in these testing times. Some supporting schemes for business owners during this crisis are mentioned below:

SBI COVID-19 funding scheme

The State Bank of India has a funding initiative to support small and medium business owners.

SIDBI for Start-Ups

The Small Industries Development Bank of India has also introduced financial support schemes for the business owners.

Atal Bimit Vyakti Kalyan Yojana scheme

This Government aided project supports people who have incurred loss in business or are affected by layoffs during COVID- 19 crisis.

The above programs and many other programs ensure that the small business owners are well aided and supported even during this COVID contingency.

Parameters for Silk Business Owners to start their Business

Certain pertinent factors are important for an owner to keep in mind while starting a particular business. For any business venture, parameters like Marketing, finance, advertising, and logistics are of utmost importance for the company to flourish.


Over the years, the definition and paradigm of marketing have undergone a sea-change. Silk as a product has got immense ancient value. It is a product that is always in demand by the Indian diaspora. With the onset of social media, handling of silk sarees and other products have also become easy. It is easy to advertise one’s product through various social media handles like WhatsApp, Facebook, and youtube. Apart from this, digital marketing also plays a key role in garnering more and more audience.


Finance is the primary step to open one’s business. Nowadays, there are several loans and funds devised by banks to help entrepreneurs and small business owners. Many Governments aided schemes and loans are also crafted to help the owners kick start their business. Schemes like MSME Business loans, MUDRA loans, National Small Industries Corporation Subsidy, Credit Guarantee Fund Scheme for Micro and Small Business support the small business owners to start their business. Besides, many venture capital firms also help business owners to start their business. Moreover, due to advancements in technology, many digital gateways and payment methods have cropped up in recent years to aid the owners.


The manufacturing process in the silk industry has also witnessed a transformation in recent years. Nowadays, instead of setting up huge plants, many owners establish cost-effective plants with low and minimum resources that yield the best results. Moreover, instead of manufacturing themselves, many owners are also engaging in outsourcing of silk products from other sellers.

Strategy and Business

Though the silk industry is in an idle state, there are ways in which the silk business can be profitable. The owners can indulge in various PR and Advertising activities by using digital platforms to popularise the silk industry. The silk business owners can also rely on word of mouth and other conventional advertising forms to reach the audience. Moreover, they can also deploy the best of modern and scientific techniques in producing silk.


One of the most critical factors for business success is awareness and knowledge. The owners must be aware of the latest technology and its usage and profitability for their business. The owners must also be digitally equipped with terms like digital gateways and internet banking. The owners must also be able to open their PPF Account. Almost all Indian banks offer PPF account services. A particular sum is locked for 15 years. You can also open it through online banking methods.


The silk industry, one of the prime industries of the Indian textile sector, has been exhibiting slow growth over a certain period. Due to a lack of resources and infrastructure, the silk business was sluggish in recent years. Due to advancements in technology and the onset of digital platforms, the industry can be revived and restructured in the best way. Owners can make use of the latest technology in attracting consumers to their products.

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Q. How can I use a digital platform for increasing my customer base?

Ans: Digital platforms like Facebook, WhatsApp, and Youtube can be fruitful for displaying one’s latest products. Here people across the globe can view the product, and this way, you can increase the target audience.

Q. E-Commerce a threat for traditional Silk Business Owners?

Ans: E-Commerce is a one-stop joint for many retail joints. Traditional silk stores can also utilise E-commerce for the profitability of their products.

Q. Does the location of the store affect the sales and profitability of the products?

Ans: The store’s location is directly proportional to the increase in sales and the profitability of the product. If the store is located in a market hub, the number of customers coming to the store will be huge.

Q. Is a hybrid model profitable for a traditional product like silk?

Ans: A hybrid model of sale ( a combination of offline store and online store) can yield results for a traditional product like silk because it will ensure that more and more customers are visiting the store either physically or through online shopping.