While a lungi is more like a wrap around, wearing the dhoti involves the creation of pleats by folding it. A dhoti also passes between the legs making it more like a folded loose trouser rather than a skirt.
A lungi is similar to a wrap-around garment, whereas a dhoti requires the creation of folds by folding it. Furthermore, a dhoti has a distinct feature of passing between the legs, which sets it apart from a skirt and makes it more comparable to a folded, loose-fitting pant.