India Vs. China: Which Country Is Better For Sourcing Readymade Garments In 2025?


Key Factors to Consider When Choosing Your Sourcing Destination

Cost & Labour

China undoubtedly has an unmatched number of highly efficient labor and therefore is considered a manufacturing powerhouse. However, in recent times, the labor cost has been on the rise due to stricter environmental compliance requirements and tariff pressures. On the other hand, India has been consistently offering high-volume outputs with consistent quality control at lower labor costs. Especially for the labor-intensive garment categories like cotton garments and casual wear, India is known for offering better cost efficiency. 

Raw Materials & Supply Chain

For large-scale production, China is well-suited as the country’s strengths lie in the well-established and vertically integrated supply chains. Multiple inputs together help make the final product, like fabric mills, accessories, dyeing units, and packaging, which are readily available in China. The availability of these supply chains allows for easier coordination for large-scale productions and faster turnaround times. 

India holds a large domestic textile base for cotton and other natural fibers. Therefore, the availability of raw materials for natural fibers is impressive in the country. However, for man-made fibers and performance fabrics, China is a step ahead. India is addressing this gap by investing in new manufacturing capabilities to strengthen its synthetic raw material segment. 

Infrastructure & Lead Times

China’s infrastructure is best in the world, with its ports, logistics systems, and cluster of factories. Large-scale readymade garment manufacturers here can handle production, sampling, and shipping with impressive speed, as export procedures have been streamlined over the years. On the other side, India, with its initiatives like the Production Linked Incentive (PLI) scheme, has been upgrading its modern textile parks and logistics. India's lead times are also steadily improving with notable progress in recent years. Therefore, both India and China are great options for apparel manufacturers in today's time in terms of sampling, production, infrastructure quality, logistics, and lead times.

Scale & Production Capacity

In terms of scale and production, China is ahead of every other country. If your brand requires large-scale productions, maintaining consistent quality delivered within a tight deadline, China should be your choice for your readymade garment manufacturer. However, small and medium-sized companies may need flexibility and customized production, and that is exactly what India’s garment industry offers.  If you are starting out in the apparel industry and need value-added work done from your apparel manufacturer, like hand-finishing and embroidery, then India should be your choice. One of the best garment exporters in India, like CheerSagar, is adept at handling both large-scale and smaller units of production that may appeal to premium and sustainable brands. 

Trade Policies

Although China’s expansive trade network speaks volumes for its efficiency and experience in export compliance. But their relationship with major Western markets like the US has become complicated due to tariffs and trade restrictions. Meanwhile, with the global “China-Plus-One” strategy, companies outside are diversifying their sources, and India, as the top choice after China, is benefiting from it. The Indian government’s various incentives for textile exports, favorable trade terms with several countries, make India lucrative for the apparel industry in the West.

Conclusion

As a small business owner interested in cost efficiency, sustainable sourcing, and order flexibility, investing in Indian private label manufacturers can be a strategic choice. Apparel manufacturers and garment export houses like CheerSagar can take you through the entire process before you make the first order. Visit CheerSagar’s website today for more information on readymade garment sourcing and establish your clothing business.