Sourcing from India to build on competitive advantages
25 Mar 2022
Given recent global events like the pandemic and military strikes, the world is seeking new sourcing destinations and India has the opportunity to reaffirm itself as an attractive and alternative source of high quality manufactured goods.
Sourcing from India
is a growing trend in recent years and the benefits are undeniable. The world’s largest democracy and one of the fast-growing economies, India has a lot to offer and is positioning itself as an attractive sourcing destination for a wide range of products and commodities.
India has already achieved its stated target ahead of schedule, i.e. $400 billion goods export, for the financial year 2021-22 (till March 22, 2022). The initiatives introduced by the Government like Make-in-India are helping the country to increase and diversify its manufacturing base and therefore boost its trade. Popular exports from India include petroleum products, leather goods, gems and jewelry, vehicles, machinery, iron and steel, chemicals, pharmaceuticals, cereals and apparel. Communication is markedly easier with Indian manufacturers as English is the Common Business Language, thus helping in global partnerships and collaborations. The country also offers a highly skilled and creative workforce that can design and create innovative and original products.
Availability of raw materials, labour cost advantage, quality equipment, rich cultural heritage and continual GDP growth are primary reasons for foreign and domestic firms choosing to conduct procurement operations in India. Among competing geographies, the labour cost in India is comparatively cheaper and therefore many companies from Europe and the USA are now increasingly turning to India as their sourcing destination to lower procurement costs which ultimately mean higher profits. India is a large producer of raw materials and rich in natural resources like cotton, silk, jute, metal, wood, marble, bamboo and others. The vast pool of trained technical manpower are aware of the advanced operational techniques and implementation of the latest equipment in their production operations. Leading global brands and retailers like IKEA, Gap, Walmart, Ralph Lauren and many others have been procuring products in India for a long time. With a focus on the quality over quantity approach Indian manufacturers are well capable of producing eco-friendly products ensuring sustainable manufacturing processes.
There are plenty of benefits of sourcing in India and only a few are covered above. Industry Experts, a
B2B sourcing platform
, helps in finding relevant contract manufacturers in select industry verticals according to the business needs as also facilitate in setting up business operations in India.
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