India is the second-largest producer of clothing and textile products in the world, and the only country with the ability to compete with China in the textile and garment industry.
Influenced by COVID-19, India textile orders have been transferred to China. India’s textile mills and garment factories may be permanently closed, and 10 million or 25% of them will be laid off. Due to the epidemic situation in India and the inertia of supply chain management, order transfer will last at least for two or three years.
What are the differences between Indian garment manufacturing and Chinese garment manufacturing?
- The scale economy effect of China’s textile and clothing industry is greater than India
China is the largest textile and garment producer in the world, with a series of complete industrial chains of textile, printing, and dyeing, and finished product production. The overall supporting capacity of textiles and clothing is strong, and the raw material supply of mechanical equipment parts and clothing accessories can be solved in the main processing industrial zones. China’s textile and garment industry has obvious characteristics of product nationalization. Dozens of production and sales bases of textile fabrics, clothing, and household textiles have been formed in China originally.
India’s textile industry has the longest history and the largest scale. It is the pillar industry of India. India’s spinning, weaving, printing, and dyeing industry has a good foundation for development and is a strong competitor of China. However, due to the small scale of Indian textile enterprises, insufficient and scattered investment, backward production equipment, and technology, the production capacity of Indian textile industry is limited compare with China.
- China’s cotton production is huge, but India’s cotton cost is low
China is the largest cotton producer in the world, but at the same time, China also needs to import a large amount of cotton, so the average price of cotton in China is on the high side. Since 2015, the Chinese government has proposed the “new normal” to promote development. Therefore, China has increased the investment in cotton planting technology and the development of planting tools, so that the single yield of cotton has increased steadily.
India’s domestic cotton planting area is wide, and the labor cost is low, therefore the price of cotton is low, and it is also an exporter of cotton,
Compared with India, China has obvious advantages in cotton output, while India is a big cotton exporter with low cost.
- India has advantages in labor cost
The textile and garment industry is a labor-intensive industry. Its nature determines that the competition of textile and garment industry in various countries mainly depends on labor cost and employment scale. Compared with other countries, China and India have abundant labor advantages.
In the textile and clothing manufacturer industry labor costs. The labor cost of China’s textile and garment industry is increasing year by year, and India’s textile and garment industry has comparative advantages in labor force population and labor cost.
Comparison of international trade competitiveness
As the world’s largest exporter of textile and clothing, China accounts for one-third of the world’s textile and clothing market. India’s textile and clothing export industry is developing rapidly, but there is a big gap with China. Compared with India, China is gradually losing its cost advantage in labor and raw materials. In the era of textile integration, the highly competitive international market environment has put forward higher requirements for the development of China’s textile industry.
Comparison of factory automation
China upgraded manufacturing equipment to automatic machines. The current garment hanging system includes CNC machinery, robots, automatic warehouse, automatic transportation, and other automatic processes. After a finished product is cut, it goes through about 17 processes, which are completed at one time from the beginning to the end. The system can shorten the processing time, improve production efficiency and ensure product quality. The biggest advantage of the hanging system is that all the information goes through the computer to ensure a smooth process. Therefore, it can also support the production of small-batch clothing orders.
At present, India is still dominated by manual production and has not started mechanized automatic production yet.
We can get a conclusion, in the future, the garment manufacturing industry will replace low-end worker manufacturing with automatic production system.