Import from China or India?
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Many companies outsource customer service and other mid-level operations to India, due to the high numbers of english-speaking job seekers, however, China reigns supreme in manufacturing, due to its long-time investment in industrialization. In recent years, India has also attempted to break into the manufacturing market to employ a higher percentage of the population.
Benefits of Outsourcing
Moving production overseas gives businesses a lower expense line on the production of goods. Labor in both India and China is less expensive, since both countries have excess population and fewer jobs. The currency exchange rate also works in favor of domestic businesses. The dollar compares very favorably to both the yuan and the rupee. In China's case, this is deliberate, with the government working to keep the exchange rate low to continue to provide incentive to American businesses.Where to Move Production?
When looking at both of the world's largest population centers for manufacturing opportunities, China stands above the competition. India has a comparable labor pool, but the infrastructure is only in the beginning stages. In China, manufacturing plants are well-established, with the latest technology available. The government stands behind industry to such a degree that it offers subsidies to companies which employ more than a set number of workers.China is the single largest exporter worldwide, with a vast number of different plants, producing a wide array of products. Everything from food to high-end technology comes from Chinese factories. In the techonology sector alone, top companies like Hewlitt-Packard, Apple, Sony, Microsoft and Amazon, among others, use Chinese factories for their consumer products. High-end shoe retailer, ColeHaan, also moved much of its production to Chinese factories.
If the top companies are choosing China, there must be a reason. Even India chooses Chinese manufacturers. When looking at the comparative import numbers, India imports $43.5 billion dollars worth of Chinese products each year. China imports less than $20 billion in products from India. So it would seem that India has recognized the superiority of Chinese manufacturing.