The Indian textile industry is only second in size to China. More than 50 percent of India’s textile exports are cotton based, but suppliers also manufacture synthetic fabrics, wool, and silk. The textile sector is one of the oldest industries in India, so Indian suppliers differentiate by implementing antiquated, quality-focused techniques in the production of goods like knitted custom clothing garments.
India’s factory wages are the lowest among Mexico, Philippines, Vietnam, Indonesia, and China. These kinds of wages can lead to 10-15 percent increase in savings for your eCommerce business, which in turn increases your profit margin.
Shipping from India is less costly compared to shipping from other countries in Asia. However, the total shipping cost includes the base rate as well as a CGST and SGST, which are both part of a Goods and Service Tax. These taxes are unique to India’s exports. The major share of revenue under CGST is meant for the central government and SGST tax revenue is meant for the state government.
Production Capabilities
On the whole, what makes India a competitive manufacturing location is the low cost of manpower and strong technical and engineering capabilities contributing to higher quality production runs.
India also poses a language advantage since English is an official language of India. It may be easier to communicate with Indian suppliers compared to suppliers in China or Vietnam, which will simplify negotiations.
COMMENT: India's connection to China is a worrisome one in that if the two countries unite they will have an enormous amount of manpower plus they can use the strength of their two economies to play off one another. Sometime in the near future possibly as early as 2030 almost 10 years away... this threat will become more apparent than it is right now but by then will it be too late for us?
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