Sourcing from India Main
Galina Zagumennova
by Galina Z.posted on 01.02.2018

Sourcing Suppliers From India: Everything You Wanted to Know

Sourcing  suppliers from India may seem tough. However once you make an effort to understand the market, and maybe work on your negotiating skills a bit, it won’t seem to be as hard as you initially thought. The export industry in India is dominated by small-scale manufacturers which tends to make importing from the country a complex process. Getting goods from suppliers on time, at the right quality, and in exact quantity, requires adept negotiating skills and an in-depth knowledge of relevant industries.

As a buyer, you have to spend a lot of time identifying the right product and the right supplier. Finding a supplier for your products in India takes time and doing proper research is crucial. There are a number of benefits to using an Indian supplier, but you also need to be aware of the risks and potential hurdles you might come across. Remember to consider many options before you select a supplier from India. Also, keep in mind you cannot ask your potential supplier too many questions. So, get all the information you possibly can before making a decision. Don’t forget to do Amazon research using our comprehensive tools as well.

Benefits of Indian Suppliers:

  • Considerably low price of raw materials.

  • Low labor cost. Labor is widely available and is usually well qualified.

  • Most manufacturers use good quality equipment.

  • Indian suppliers speak English. So all documentation and contracts are made in English.

  • Commercial laws are based on British common laws that are similar to the US legal system.

  • Many international banks have branches in India.

Risks Related With Sourcing From Indian Suppliers:

  • Quite expensive resources may lead to a considerably high price for the final product.

  • Risk of poor organization may lead to different mistakes with your order.

  • Risk of supply delays.

  • Pretty high risk to meet an irresponsible supplier.

Third Parties Help

There are Export Promotion Councils in India. These councils are industry-specific and act as middlemen for Indian manufacturers and foreign buyers. The role of these councils varies, but generally they are a good starting point for getting information on a specific industry and for directing foreign buyers to manufacturers. Organizations engaged in export promotion (export promotion councils, industry associations, chambers of commerce, etc.) also publish periodic newsletters and magazines. These cover a range of topics from general analysis of the India’s economy to market research for specific goods and services.

Internet Research of Suppliers in India

Of course, the first direction of your research should be on the Internet. You will definitely find tons of information on potential suppliers and get further insights into the process. There are few business 2 business (B2B) websites in India. Like Alibaba.com in China, there are Indian counterpart websites like TradeIndia.com and Indiamart.com. Be aware that certain suppliers listed in these directories are not always legitimate.

Trade Shows And Exhibitions

Furthermore, there are a number of trade associations and trade shows which operate in India. These are great for contacting suppliers and talking to them directly. Large industry trade shows in your country are likely to have Indian representatives as well. Most of the trade fairs take place annually and they are generally industry specific. A large number of these fairs typically take place in Mumbai, which is the center of Indian trade. You can also visit India to meet face-to-face with potential suppliers. If you are planning such a trip, remember to arrange these meetings before booking your flights.

Some examples of such exhibitions and events:

  • India International Garment Fair (IIGF)

  • India International Fashion Jewellery and Accessories Show

  • Home Expo India

  • Indian Handicraft & Gift Fair

  • Indian Houseware & Decorative Show

  • India International Mega Trade Fair

Preferable Manufacturer

If asked “From whom to choose - large manufacturers or small companies?” The choice is yours. Large companies have huge manufacturing capacity and there can be a minimum quantity to order. However they are certainly more reliable. With small companies it you might be able to negotiate an initial order quantity that you need. However if you chose to go this route make sure you have thoroughly researched your supplier beforehand. With a small company you can build a closer relationship and they might be able to adapt the product according to your individual needs.

Important Points  

During your research it is important to focus on two things:

  1. The quality of the product

  2. The quality of the service

If you are not at all satisfied with either the product or the service, DO NOT hesitate to walk away from the deal. You should see first if the supplier is responsive and is able to handle the small issues. It is the most important thing in sourcing Indian suppliers. DO NOT waste time with a non-responsive or non-cooperative partner.

If you are satisfied with the samples, you can follow up with the chosen supplier and finalize the deal! Good luck!

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