India has a rich history of manufacturing from the past many years. So much so that in the current supply chain landscape, India is enjoying one of prime spots for companies who want to increase their supply chain and get a wide range of products at a cheaper price.

Now, even after centuries of experience in producing hardwoods, textiles, and other products, there are still a large group of challenges that buyers should keep in mind while sourcing from India.

This guide below will give you insights into the whys and hows of sourcing from India.

India’s Manufacturing Horizon

India’s manufacturing landscape plays a very crucial role in the overall economic development of the country. Recently, the “Make in India” initiative has been a great boost to make the country the center of manufacturing. This transformative initiative is mainly focused on crucial sectors within the Indian manufacturing landscape such as Automobile and Components, Construction, Chemicals, Electronic Systems, Textiles, Renewable Energy, and more.

But what is it that really makes India stand out in the manufacturing ecosystem? It is India’s regions that are specialized in producing different products. Let’s have a look at them one by one:

North India

From Ludhiana for textiles to Haryana for automotive and machinery, the Northern part of the country is a hub of many traditional industries, textiles, etc. As an example, leading companies like Maruti Suzuki, Hero MotoCorp, and Honda Motorcycle and Scooter India have established their production units in this region.

West India

From Gujarat for chemical and machine tools, Mumbai for textile and pharma, Pune for automotive, and Gujarat again for textile, the western part of the country has gained so much popularity for its manufacturing capabilities in certain areas.

East India

From Jharkhand for coal mining, handicrafts, and textiles to Jamshedpur for steel and Assam for tea, East India is a rich source of natural resources in the country. The ideal climatic conditions are a plus for this region.

South India

From Bangalore (“Silicon Valley of India”) for computer and electronics, Chennai for automotive and hardware, to Coimbatore for textile, South has seen a rapid growth in manufacturing from the past few years.

Major Benefits Of Sourcing From India

A plethora of Industries, a skilled workforce at lower rates, and a large population make India one of the prime destinations for product sourcing. Here, we will unveil some of the major benefits of sourcing from India:

1. Economic Advantage

Economic advantage is one of the main reasons why India is a preferred destination of many across the globe to source goods and services. It’s attractive how skilled labor in India are capable of producing quality products at a lower price.

2. A Vast Variety of Products

Considering India’s size and the country’s rich resources, it’s no surprise that India has something to offer everyone. You can connect with a large group of suppliers and find products in a plethora of categories. From handicrafts, textiles, bags, shoes, and whatnot, you name it and get it.

3. No Communication Barrier

Though English might not be the first language here, you can find English-speaking people. As a result, it makes communication easier when compared with China or Vietnam.

4. Trade Agreements

In the past few years, the country has entered into several bilateral free trade agreements, which include the India-UAE Comprehensive Economic Partnership Agreement, India Africa Trade Agreement, and India-Australia Economic Cooperation Trade Agreement. Countries with agreements can get huge benefits.

Disadvantages Of Sourcing From India

Along with all the benefits, there are some disadvantages that must be considered too while sourcing from India.

• Currency fluctuations: The fluctuating nature of the currency needs to be considered as it can impact profit margin while sourcing from India.
• Potential Shipping Delays: Factors like Geographical distance and logistical complexities can lead to shipping delays, affecting supply chain timelines and customer satisfaction.
• Cultural Differences: Cultural differences like differences in business practice and norms might lead to communication problems.

Effective Strategies for Managing Quality Control in India

The consistency challenges in quality management makes it a must for importers to manage quality control when sourcing from India.

Two effective methods to ensure quality are:

• Conducting Factory Audits: Factory audits are extremely helpful in identifying risks and ensuring engagement with legitimate and quality-compliant suppliers.
• Engaging Reliable Partners like HQTS: HQTS supplier audits include multiple checkpoints like company legality, exportation capability, and production processes. By implementing these measures, businesses can navigate the Indian manufacturing landscape and maintain superior product quality.

Guide to Sourcing Suppliers in India: Identifying & Selecting

When sourcing from India, one thing must be kept in mind: it might be a little difficult to come into contact with suppliers in India because many of them have little or no online presence. Therefore, you must be vigilant about finding the right partner.

1. Online Directories

India has a couple of online directories where you can contact and connect with suppliers. But you must be careful with your research because the suppliers listed there might not have an export license, as most of them are domestic dealers.

2. Trade Shows

Trade shows are one of the best ways to find and deal with credible suppliers and interact with their products firsthand. In fact, so many big trade shows happen in India, like Delhi Spring, to have the most fruitful face-to-face interactions with suppliers.

3. Associations

Associations hold so much importance in the Indian manufacturing industry. Being members of such associations means larger businesses with well-established quality control practices and experience in dealing with foreign buyers.

The Zoglix Advantage

Zoglix is a leading sourcing partner in India, making it extremely convenient and hassle-free for importers. With a great deal of experience and expertise in meeting all sourcing requirements from India, Zoglix also ensures quality control through factory audits and connects buyers with reliable suppliers. The comprehensive approach is an added bonus, which maximizes the advantages and minimizes the challenges of sourcing from India.

To Conclude

Sourcing from India presents vast opportunities with its diverse manufacturing landscape and skilled workforce. However, challenges like currency fluctuations and cultural differences must be considered.

Partnering with reliable sourcing companies like Zoglix and implementing strategies like factory audits ensures superior product quality. Use these insights for a successful sourcing experience in 2023 from India.