Sourcing in India

  • 1st December, 2022

India is known for its vast and diverse culture. It's also a major source of goods and services for the rest of the world. But what many people don't know is that India is a powerhouse when it comes to sourcing. Sourcing, or finding suppliers for goods and services, is an essential part of doing business both in India and abroad. And India has a lot to offer businesses looking for quality suppliers at competitive prices.

The history of sourcing in India

The history of sourcing in India can be traced back to the days of the British East India Company. The company sourced a variety of goods from India, including spices, textiles, and coffee. In addition to providing valuable goods to the British market, the company also helped to create jobs and stimulate economic growth in India. After the company was dissolved in 1858, Britain began to source goods directly from Indian manufacturers. This direct sourcing continued until 1947, when India gained independence from Britain. Today, India is one of the world's leading sourcing destinations, with a wide range of products being sourced from its factories and suppliers. Thanks to its vast pool of skilled labor and its competitive cost structure, India has become an essential part of the global sourcing landscape.

The benefits of sourcing in India

Sourcing in India has many benefits for businesses. The country has a large population, which means that there is a large pool of potential workers to choose from. In addition, India has a fairly low cost of living, which can help to keep business costs down. Additionally, India has a rapidly growing economy, which provides opportunities for businesses to expand their operations. Moreover, the Indian government is supportive of foreign investment and offers a number of incentives for businesses that set up operations in the country. Finally, India is home to a number of world-class universities, which produce highly skilled graduates that can meet the needs of businesses. Consequently, sourcing in India can offer considerable advantages for businesses looking to reduce costs or expand their operations.

The challenges of sourcing in India

Sourcing in India can be both exciting and challenging for foreign companies. On the one hand, India offers a wealth of opportunities for businesses looking to tap into a fast-growing economy. With its large population and rapidly expanding middle class, India is an increasingly attractive market for many products and services. However, sourcing in India can also be fraught with challenges. Infrastructure constraints, bureaucratic red tape, and language barriers can all make it difficult to do business in India. In addition, intellectual property rights are often not well protected, making it risky to transfer technology or know-how to Indian partners. Despite these challenges, however, many companies find that the potential rewards of sourcing in India are too great to ignore. With careful planning and execution, businesses can overcome the challenges and reap the benefits of sourcing in India.

How to get started with sourcing in India

There are a few things to keep in mind when sourcing in India. First, it is important to be aware of the country's business culture. Indians tend to be relationship-oriented, so building trust is essential. It is also important to be patient; decisions are often made slowly, and negotiations can be lengthy. Additionally, it is helpful to have a local partner who can provide insights into the market and help you navigate the cultural differences.

Once you have a good understanding of the business culture, you can start to look for potential suppliers. There are a few great resources for finding suppliers in India, such as the India Sourcing Center and the Confederation of Indian Industry. You can also search online directories, such as Once you have found some potential suppliers, it is important to vet them carefully before committing to any business relationships. Make sure to check references and examine their manufacturing facilities to ensure they meet your standards. By taking the time to do your homework, you can source successfully from India and get the quality products you need at a great price.

Tips for successful sourcing in India

India is a vast country with a rich culture and history. When it comes to sourcing, there are many things to consider. Here are a few tips to help you successfully source in India:

1. First, it's important to have a good understanding of the local market. This includes knowing which products are in demand and where to find reliable suppliers.

2. It's also helpful to build relationships with local businesses. This can give you an inside look at the market and make it easier to find trustworthy suppliers.

3. Finally, be prepared to bargain. In India, haggling is part of the culture and can help you get the best price for your products.

Following these tips will help you navigate the Indian market and successfully source the products you need.

Case studies of successful sourcing in India

Numerous case studies demonstrate the success of sourcing in India. In one study, an apparel company was able to source garments from India at a fraction of the cost of sourcing them domestically. The company was able to source fabrics and trims at a lower cost, and also benefit from lower labor costs. As a result, the company was able to significantly increase its margins. In another study, a furniture company was able to source wood from Indian suppliers at a much lower cost than domestic suppliers. The company was also able to benefit from skilled craftsmen who were able to create high-quality furniture at a fraction of the cost of their counterparts in developed countries. As these studies demonstrate, sourcing in India can be an extremely successful strategy for companies looking to improve their bottom line.

Final thoughts on sourcing in India

Sourcing in India is a complex process, but with the right help it can be incredibly successful. If you’re looking to get started sourcing in India, our team at Relloe has the experience and expertise to make sure your venture is a success. Contact us today for more information.