The ready-made garment industry is highly labour intensive. Hence labour cost per hour is an important factor in this sector to remain competitive. As per the global Statistics & data available, it reveals that labour cost per hour in India is substantially lower than the developed and developing countries in the world.
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| image courtesy: Denim experts limited |
However, there are few under developing/developing countries in Asia, where labour cost is lower than in India. Countries like Vietnam & Cambodia with lower labour cost are slowly making an inroad in the global market and the progress is very fast. It is a fact that labour cost per hour simply does not indicate the impact on garment manufacturing cost. It also depends on the value addition made by the individual per hour. It is reported that though labour cost is high in some countries but value addition made by labour, is substantially higher compared to other countries including India.
Table: Garments manufacturing labour costs (US$/hour) by Countries
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Asian Competitors
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US Regional Suppliers
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Mexico
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2.54
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Bangladesh
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0.22
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Honduras
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1.72-1.82
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Cambodia
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0.33
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Dominican Republic
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1.55-1.95
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Pakistan
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0.37
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Nicaragua
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0.97-1.03
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Viet Nam
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0.38
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Haiti
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0.49-0.55
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Sri Lanka
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0.43
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EU Regional Suppliers
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Indonesia
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0.44
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Turkey
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2.44
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India
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0.51
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Morocco
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2.24
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China(remote/inland areas)
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0.55-0.80
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Russia
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1.97
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China (other coastal/core areas)
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0.86-0.94
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Tunisia
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1.68
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China (Prime coastal areas)
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1.08
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Bulgaria
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1.53
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Malaysia
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1.18
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Jorden
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1.01
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Thailand
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1.29-1.36
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Egypt
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0.83
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About the Author: Chandan Saha is currently holding the position of Joint Advisor (CI), Planning Commission, New Delhi, India. He is a Fellow of Institution of Engineers India and Life member of various professional associations. He was engaged in R&D works for long. He has received Er. Sadanand Memorial Award from Institution of Engineers India, Orissa Circle for the significant contribution in the development of industry in the state of Orissa.

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