The China Sourcing Blog has an interesting post, entitled, China and India: A Comparison in Sourcing Potential, on the similarities and differences between China and India when it comes to product sourcing:
There are many similarities between China and India in today’s global-economic climate. Both have over one billion citizens, both have experienced resilient growth in output, and both have greatly expanded their roles in international trade. The relatively inexpensive yet well educated workforces of these two countries have made them key prospects for the sourcing of manufactured goods. Yet differences remain in their supplier and logistical capabilities which must be taken into account by the sourcing professional.
The post sees both India and China as “capable of world class manufacturing processes.” The two countries are fairly close in terms of factory productivity, but (and no surprise here) China outperforms India on infrastructure and logistics which “may explain why India is a more common site for the outsourcing of services, particularly IT services, which do not require a physical good to be brought to market.” The post concludes that both are viable countries for product sourcing:
However, India should not be entirely discredited as a sourcing destination for manufactured goods. Both it and China have allocated over 10% of their GDPs toward infrastructure development which will enhance their future logistical abilities in bringing their products to the world’s consumers. The greatest similarity between China and India: neither can be ignored by the sourcing professional.
What do you think? I would particularly love to hear from people with sourcing/manufacturing experience in both China and India.