Comparative Study Of Competitive Advantage Of Chinese And Indian Textile And Clothing Industry

In China, textile and clothing industry is one of the traditional industries which have a certain degree of comparative advantage and a strong international competitiveness. However, competitiveness is a dynamic concept, China's having an advantage does not mean that the advantage will be maintained and expanded. In India, the textile and clothing industry is also regarded as a traditional industry, they seize the opportunity when European Union and the United States - the major importing country of textiles and clothing took measures to monitor China's textile and clothing exports and restraint China's textile and clothing exports in disguised form to gain the benefits, to attract large numbers of foreign enterprises in China's production or procurement of raw materials shift from China to India. At the same time, they further increase their support intensity for the development of native textile and clothing industry, expand production scale, enhance the support capability, and use lower labor costs to compete with China. It has become one of the major competitors of China's textile and clothing exports. Comparing the competitiveness between China and India's exports of textile and clothing industry has important practical significance for China to cope with the international challenges to achieve sustainable development.The paper is divided into six parts, the first part of the article puts forward the backgrand and the significance of topics, introduces the research results at home and abroad, as well as the contents of the paper study, methods, difficulties and innovation. The second part describes the theoretical basis for competitive advantage analysis of textile and clothing industry. Comparative advantage is the basis of competitive advantage, only turning comparative advantage into competitive advantage, can form a real competitive advantage in the industry. The third part uses the relevant data of import and export to make quantitative analysis of export of textile and clothing competitive edge of China and India. Uses of international market share,trade competitveness index,revealed comparative advantage index,export structure, export unit price index and the transfer of share analysis methord to make a more comprehensive comparision of export of textile and clothing competitive edge of China and India. Reveals the advantages and disadvantages of the textile and clothing industry of China and India. The fourthly part analyzes the influcncing factors of export of textile and clothing competitive edge of China and India. The fifth part bases on the front comparative analysis, makes corresponding countermeasures and suggestions. The sixth part concludes the conclusion, inadequacy and prospect of the research.The paper analyzes the impact factor of export competitive advantage of China and India's textile and clothing industry on the basis of a more systematic comparision of the competitive adavantage of Chinese and Indian textile and clothing industry. Porter not only examined the four key factors of the"diamond model"and two secondary factors, but also made in-depth comparative analysis on the aspects of Chinese and Indian using of foreign capital and foreign investment, less common in the current study. This paper argues that, despite the competitiveness of Chinese textile and clothing industry is in general advantage, however, in comparision with India, China's labor costs, export price are at a competitive disadvantage; Compared with developed countries, the high-level ownership of factors of production, product value-added and technological innovation capacity of China and India needs to be strengthened. Therefore, this paper proposes to cultivate high-quatity workforce, to adjust the structure of export products, strengthen the R&D investment, and improve enterprise's technical equipment, technical innovation, the export market diversification, focusing on brand marketing, attention to overseas investment, developing e-commerce and several other specific recommendations, and hopes that the China shifts from"big country"to"powerful country"in the textile industry as soon as possible.