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Heard that salaries are higher in China than in India. Event though Chinese companies pay more for their employees, their products are much cheaper than Indian products. What could be the reason behind this phenomena?
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It is because of mass production. This is what I read in news papers.
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There are a few reasons why Chinese products may be cheaper than Indian products. One is that Chinese manufacturers often have access to cheaper materials and production costs due to economies of scale. They may also benefit from government subsidies or tax incentives. Chinese manufacturers may also have access to more advanced technology and production methods, allowing them to produce goods more efficiently and at a lower cost. Additionally, Chinese companies may be able to undercut Indian companies on price due to currency exchange rates, as the Chinese yuan is usually weaker than the Indian rupee.

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This is mainly because of economies of scale and low input costs.

When products are manufactured in large quantity, the fixed cost barely affects the product cost. Hence they can concentrate on marginal cost of the product and make competitive pricing by cost control. 

Also China can procure raw materials at low cost from other countries mainly because having exploration and extraction contracts with various poor nations.
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Comparing to India, China has less corruption. More work force, less production cost and less little labour cost. China has more natural resources, for example, less cost of electricity and transportation cost than India. China is a Communist country, on the other hand, India is a democratic country thus more freedom, more corruption.
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This is always a situation that can have something to do with two things and one of them is the business environment.

There is this saying that when a government of a country makes the business environment better for those that are looking at entering business, it is always better for them to thrive and do well.

Just like the situation that we are having in Nigeria where it is expensive to do business, you will notice that most business there will definitely struggle. I think that the government of China are doing everything within their powers to ensure that the business owners that are in the country enjoy good tax tariff, good infrastructure that aids the business and this is one thing that makes that cost of producing goods is not high.
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When you take a good look at how the world works today when it comes to production of goods and services, China is the highest producing country with a massive workforce behind each company over there.
There are thousands of companies that are available and fully active in the production of virtually any type of products that are purchased and distributed worldwide. There is no part of the world where Chinese products are not shipped to and sold with great speed. When it comes to quantity and quality of their products, everything depends on what you pay the Chinese companies to produce for you. When you pay for high quality products, they provide it for you and when you pay for low quality products, that is produced for you as well.


The competition over there makes their products cheaper.
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Technology in China is a bit more advanced than in India and they have a lot more factories there than they do in India. This makes it possible for China to mass-produce products at a much lower cost than they can do this in India. Plus there are more factory workers in China and they pay a much lower rate of money to these people to do their jobs. The people that live in China run the factories around the clock and they have plenty of people to work there and even more looking for work. 
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In China, their items are cheaper because the materials used are cheap, too. That's the reason why some countries love buying items from them. They can mark up the items.
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China has less corruption. More work force, less production cost and less little labour cost. China has more natural resources, for example, less cost of electricity and transportation cost than India. 
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Most of chinese products are made from waste recycled materials and hence do not involve alot of costs unlike Indians who produce from original raw materials making their products more quality.
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I think its more related to the "quality" of the materials they use compared to the materials we use to make the goods and they are able to produce it at a much cheaper rate 
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I guess it is about the quality of the products because China uses low-class quality on their products which is why they can sell them in bulk and in cheaper costs. China is known for mass production and the quality of its products. I think the products in India are still better with regard to quality. The materials are much even better even if they are sometimes rare in the market. 
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The main reason that Chinese products are cheaper than Indian products is because of the low cost of labor in China. Chinese labor is usually much cheaper than Indian labor, and Chinese businesses can therefore afford to produce their goods at a lower cost. Additionally, Chinese businesses often have access to more advanced production technologies than those available in India, which further reduces the cost of production. Finally, Chinese businesses may also benefit from subsidies and other incentives from the Chinese government, which can help them to produce goods at a lower cost.
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There are a number of factors that can contribute to the difference in price between Chinese and Indian products. Here are a few possible explanations:

Labor costs: China has a larger manufacturing base than India, and labor costs tend to be lower in China due to factors such as a larger workforce, more developed infrastructure, and greater economies of scale.

Raw materials: China has a more developed infrastructure for sourcing and processing raw materials, which can help to keep costs down.

Currency exchange rates: The relative strength of the Chinese yuan compared to the Indian rupee can make Chinese products cheaper on the global market.

Government policies: China has implemented policies to promote export-oriented growth, such as subsidies for export-oriented industries, which can help to keep prices competitive.

It's worth noting that these factors are complex and interrelated, and there are likely other factors at play as well. It's also important to remember that there are many high-quality products made in both China and India, and the relative price of products from each country can vary depending on the specific product and market.
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There are several reasons why Chinese products may be cheaper than Indian products, including lower labor costs, economies of scale, and government subsidies.
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The benefit accruising to Chinese manufacturers are essentially due to including factors ;lower cost of capital investment, higher labor productivity , lower transaction and transportation costs. 
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Chinese products are often cheaper than Indian products due to a variety of reasons such as lower manufacturing and labor costs, higher production efficiency, government subsidies, and a larger scale of production. Additionally, China has a more developed and efficient supply chain system, which helps reduce costs and improve efficiency.
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The benefits accruing to Chinese manufacturers are essentially due to seven factors: economies of scale in manufacturing, tariff differentials, lower cost of capital investment, higher labour productivity, lower transaction, power and transportation costs.
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Manufacturing Costs: China has a well-developed manufacturing infrastructure with a large and efficient workforce. The cost of labor and raw materials in China can often be lower compared to India, leading to lower production costs and, consequently, lower product prices.

Economies of Scale: China is known for its massive manufacturing capabilities and economies of scale. The country produces goods in large quantities, allowing manufacturers to take advantage of bulk purchasing, streamlined production processes, and cost efficiencies. This enables Chinese manufacturers to offer products at competitive prices.

Infrastructure and Supply Chain: China has heavily invested in building a robust infrastructure and supply chain networks that support manufacturing and export activities. This infrastructure, including transportation, logistics, and ports, enables efficient movement of goods, reducing costs associated with distribution.

Government Policies and Incentives: The Chinese government has implemented policies and incentives to attract foreign investment and promote export-oriented manufacturing. These policies often include tax benefits, subsidies, and other support mechanisms that help reduce production costs and make Chinese products more price competitive.

Currency Exchange Rates: Currency exchange rates between countries can impact the pricing of imported goods. Fluctuations in exchange rates can affect the relative cost of products, making products from countries with a weaker currency, such as China, relatively cheaper when compared to products from countries with a stronger currency, like India.
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