Sourcing from India

Advantages of Sourcing from India

The growing consumption and increased consumer demands are driving a more global approach towards sourcing specifically from the low-cost countries. India happens to be one of them. For this reason, it ranks amongst the leading destinations for sourcing and procurement services.

There are several other comparative advantages that India enjoys; including – high-quality products, low-cost labour, strong R&D sector along with technical expertise in various fields and experienced sourcing agents. Furthermore, a lingering us-china trade dispute offers a good opportunity for Indian exports. It is known that there is an opportunity in a crisis and that holds for relations among countries as well.

India could benefit from the ongoing us-china trade war but how?

Here’s the answer – Indian industries have urged the government to reduce overall tariffs to benefit from the trade war between the US and China. If the Indian exporter is competitive it can replace China in certain areas if not all. However, to turn this ambition into a reality the Indian government would need to formulate an effective trade policy.

In the wake of the trade war between the US and China, the detailed sector-wise strategy for import substitution in electronics, telecom, electrical equipment and pharmaceuticals has been recommended. Countries are already working on relocation to India in sectors like electronics, consumer appliances, consumer electronics, textiles, healthcare equipment and heavy Industry. Luckily enough, India is the leading manufacturer in some of these industries.

The high-level advisory group in India has submitted its report to the ministry of commerce, that explains the need to arrest and reverse a further rise in India’s average taxes. According to reports, India has drawn up a strategy to gain market access in China for its pharmaceutical products and exports. It also attracted foreign companies looking to shift out their manufacturing bases from China. 

Then the pandemic hits and the shutdowns were imposed nationwide…

It prompted the demand for supply chain resilience and redundancies. The national security priorities of states began to expand with sectors like health care and pharmaceuticals coming under that purview.

Moreover, China’s mass diplomacy added to the anxieties about the vulnerabilities of dependence on any single market along with the need to secure one’s innovations. The pandemic further accelerated the trend of deglobalization with politics and trust becoming imperative to economic decision making. This scenario has resulted in fresh opportunities for India as it holds good international relationships.

India’s strength also lies in it’s manpower. Its workforce can perform at a high level consistently at competitive wage rates. The skilled workers based in India have proved to be efficient with their efforts time and again. Another lucrative aspect to procurement from India is the unique story it offers. It owns certain products that are available nowhere else in the world. India is rich in natural resources and has an abundance of handcrafted products that often quote a higher price in the international market. 

India has shown a positive pattern of timely delivery of goods to international buyers. Another thing that attracts many investors and businesses to India is the official language spoken here i.e English. With the ease of communication and customer support, companies are more willing to shift their manufacturing base in India. 

With technical professional excellence, it coded and integrated some insanely complex business rule sets for various nations. If you want to take your project somewhere that you know it can be done accurately and with consistently high quality, India is the place for you.

Key benefits

  • Low cost & high benefits
  • Availability of skilled workforce
  • Advanced Technology
  • E-commerce solutions
  • Friendly outsourcing policies
  • Ease of communication
  • Better customer support


When it comes to business like sourcing and procurement, the risks are unavoidable. A few common risks that the industry faces are related to supplier risks, quality, intellectual property protection and reputational risks.

Hence, it is crucial to select the right sourcing agent/company that will help mitigate the risk in the supply chain and provide the best value to you, the client. Hence, companies are extra careful regarding their privacy, safety and more importantly, the financial aspect while dealing with an outsourcing company.