Sourcing from India: A Complete Guide for Businesses

India has long-been seen as a low-cost option for sourcing products for your business. In recent years, though, the country has emerged as a strategic choice due to its global supply chains and wealth of technical talent.

In this blog post, you’ll learn more about the supplier scene in India. We will also look at best practices to keep in mind when sourcing products from the country, and dealing with international exchange rates.

Is Sourcing from India a Good Option for Your Business?

India is, and has been, a popular location for finding suppliers. It's popular for sourcing products because it’s widely viewed as a hotbed for technical talent and

Global sourcing from India can be a good choice due to several factors. Here are some of the main cost-based benefits of sourcing from India:

• Tariff advantages - Due to section 301 duties which were first imposed on China from the U.S. in late 2024, India has emerged as one of the most favorable locations for sourcing consumer goods. Indian consumer goods can enter the U.S. with normal MFN (Most Favored Nation) rates, making them hard to beat from a cost angle.

• Aggressive incentives - As of March 2025, the Indian cabinet has approved a plan worth $2.68 billion¹ which is set to increase consumer goods manufacturing. This move is set to bring tens of thousands more jobs to the country, and make it easier to source electronic components from the U.S.

• Low-cost solutions - India has long offered economical outsourcing and sourcing options for U.S. companies. This is due to lower factory wages and a lower cost of living. This makes it an attractive option for hiring and for finding suppliers that will help you keep costs down.

• A tech-savvy talent pool - Many Indian companies are seeking to capitalize on emerging technology trends. This includes AI, which means there’s an emphasis on more technology-based skills training. In 2024, prime minister Narenda Modi set out to make India a digital leader, offering overseas companies more options when it comes to technical and technology-based products.

Key Industries and Popular Products

When sourcing products from India, it’s important to know where to look for certain goods based on your industry.

Here’s a brief overview of industries and popular products:

Different regions in India are known for different types of products, too. For example, a lot of textiles and auto parts are fabricated in the northern regions. Many chemicals and pharmaceutical products are often found in the western regions.

Cost Advantages of Indian Suppliers

Product sourcing from India can be a cost-effective solution for your business for some of the following reasons:

Lack of section 301 duties

The lack of section 301 duties makes India one of the most cost-effective options for suppliers. With MFN duty, a textiles product such as a cotton tote bag coming from India will typically clear customs with a small duty fee. In contrast, the section 301 surcharge China pays adds a sizable percentage on top of that fee.

Lower MOQs

With lower minimum order quantities than other countries, ordering a small pilot order from India means you can test demand before you add a large number of products to your inventory.

Favorable currency strength

The Indian rupee has dropped to its worst value in a while in 2025, strengthening the value of the U.S. dollar by comparison. This means you can get more value for your money when dealing with Indian suppliers.

Tips for Finding Reliable Suppliers in India

To find reliable suppliers in India, it’s worth paying attention to various channels and being as thorough as possible with your vetting process.

How Do I Find Suppliers in India?

Here are a few ways to find the best suppliers in India:

• Trade fairs - At trade fairs, you’ll often have the opportunity to meet with Indian suppliers and sample their products. The India International Engineering Fair in New Delhi and the India ITME trade show.
• Use Export Promotion Councils - You can use Export Promotion Councils such as the EEPC, FIEO which maintain verified directories where you can find reliable suppliers.
• Visit industrial areas - If you want to get boots on the ground and meet with suppliers yourself, you could visit some of the more industrial areas known for producing products in India such as Tirupur which is known for knitwear.
• Hire sourcing agents - If you’re looking to outsource the process of hiring reliable suppliers, you can hire sourcing agents to do the heavy lifting for you and present you with some best-fit options.

Using B2B Marketplaces

Another way to find reliable suppliers is by using B2B marketplaces. These platforms check suppliers to some extent and give you a wide range of vendors in one place.

Here are a few B2B marketplaces you could use to find suppliers based in India:

How Do I Verify an Indian Manufacturer?

There are various ways to verify an Indian manufacturer.

Here’s what you’ll need to pay special attention to:

• Corporate registration - First, you’ll want to verify the company legally exists. You can do this by confirming the company’s CIN (Corporate Identification Number) on the Indian MCA (Ministry of Corporate Affairs) portal.
• GST compliance - Verify that the GSTIN (Goods & Services Tax Identification Number) matches the supplier’s legal business name and the state in which they are registered.
• Certifications - To make sure you’re working with a reliable supplier, there are certain certifications to look out for. For example, the ISO 9001, ISO 14001, BIS certification, and there are some industry-specific certificates such as the IATF 16949 for the automotive industry.
• Factory audit - If you want to go the extra mile to vet your suppliers, you can bring in a third-party inspection company to carry out a factory audit before you place a large order. Companies like SGS and Intertek have offices and audit teams across India’s main industrial hubs.

What Are the Best Products to Source From India?

There are very few products you can’t source from India, but the country is known for certain types of products.

Some of the best products to source from India include:

• Organic & recycled textiles - With the world’s largest organic cotton acreage and the facilities to produce recycled textiles, sourcing organic cotton from India can be relatively straightforward.
• Sustainable home decor - Brands like Anuprerna have built a reputation offering artisanal furnishings with low MOQs, which you can trace back to village cooperatives.
• Hand-crafted metal decor - Regions like Moradabad and Jaipur offer low MOQs on hand-crafted metal ornaments like candleholders and planters.
• Generic pharmaceuticals and wellness ingredients - India is a popular place to source wellness products. It offers popular ingredients and botanicals like ashwagandha and ibuprofen. The country also has FDA-inspected plants and cost-effective prices.

Challenges and Best Practices When Sourcing From India

Sourcing from India, like anywhere else, comes with challenges. However, if you take the right approach, you can get the best deals on products and find exactly what you’re looking for from a supplier.

Managing Quality Control

In India, manufacturing is mostly carried out by micro-enterprises, with most factories hiring fewer than 100 workers. As such, quality control can vary significantly from one supplier to another.

One of the best ways to guarantee the level of quality you’re looking for is to request a reference sample and AQL checklist in the purchase contract, so you know what to expect.

Using accredited inspection companies like SGS or Intertek can also be a good option if you want to be 100% sure of the quality of the products you’ll receive.

Handling Logistics and Shipping

While trucks may move slowly around India’s inland territories, which could cause delays, there are several things you can do to expedite logistics.
For example, you can use the country’s Dedicated Freight Corridors (DFCs), which are railway superhighways, to speed up delivery of your products. This only applies if your containerized goods originate from certain regions, though.
It’s also important to digitize paperwork as ICEGATE e-BLs and electronic Certificates of Origin can reduce instances of custom holds.
Remember to build a 10-day buffer into lead times during monsoon and Diwali seasons.

Managing International Payments and Exchange Rates

Traditional SWIFT wires to India can soon get expensive, as you’re paying a flat fee each time. Additionally, in many cases a percentage FX fee (a hidden fee built into the foreign exchange rate by some banks and payment processors).

Wise Business offers a solution to reduce the fees you’ll pay when paying overseas suppliers in India and beyond, as you won’t deal with hidden fees. You can also use rate alerts to track live currency rates and find out when the market hits a level you’ve pre-set so you can convert currency when the deal is cheapest.

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Sources used:

1. Reuters
   Sources last checked on 25-April- 2025.

	Editor & Business Expert:
	Panna is an expert in US business finance, covering topics from invoicing to international expansion. She creates guides and reviews to help businesses save time and make informed decisions. You can read more useful business articles on her author profile.

	Author:
	Sam is a UK-based copywriter with 4+ years of experience writing for SaaS and eCommerce brands. He creates comparison guides, informative blog posts, and covers other finance-based topics.