If you’re sourcing products on a regular basis for your business, India is the place to look. It provides a diverse range of goods at fantastic prices.
Indian-based entrepreneurs can reap big benefits by tapping into a steady source of goods from local suppliers. They can then sell these goods at an attractive profit in the vast Indian market.
Sourcing products has never been a problem in India; a large number of small businesses have benefitted from selling in the Indian market.
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Local products in India and the potential to source them
The business wonder finds India's booming marketplace to be the most appealing of the country's numerous attractions. As far as product sourcing is concerned, India offers limitless opportunities. The country's offerings span the gamut of traditional handicrafts to state-of-the-art technology, satisfying the needs of both local and international consumers. Companies all across the globe are showing a growing interest in Indian goods because of their high quality, uniqueness, and reasonable prices.
The textile, pharmaceutical, electronics, and automotive sectors rank high in terms of GDP contribution.
What makes the country’s entrepreneurial ecosystem are Startups and small and medium-sized businesses. The SME sector accounts for over 40% of India's industrial output and exports. It produces almost 8,000 unique products, spanning from daily necessities to cutting-edge innovations.
When it comes to sourcing from India, a few key sectors stand out. One of which is the textile products. Textiles and apparel accounted for 10.33% of India's total exports in 2021–22.
With a spike in demand for consumer electronics and smart gadgets, the electronics sector in India is predicted to surpass $400 billion by 2025. According to statistics from 2022, India is also the fourth-biggest market for automobiles globally in terms of both output and revenue.
COVID-19 disruption
Severe disruption hit the supply chain system during the COVID-19 lockdown, affecting many small businesses in the local market.
The long closures hurt a large number of businesses across segments.
However, the good news is that supply chains have started witnessing a visible and pronounced bounce back. There have been many concerted efforts to help revitalize the supply chain across sectors like:
- Auto
- Electronics
- Food processing
- Gems and jewelry
- Information technology
- Leather
- Medical devices
- Metals
- Pharmaceuticals
- Retail and eCommerce
- Textile and apparel
Slowly, these sectors have started to rejuvenate, revitalize and reenergize the Indian supply chains.
Supply chain bounce back
There’s no denying that the Indian supply chains are recovering.
Based on the data trickling in from the market, sales of fast-moving consumer goods (FMCG) witnessed a 23% jump in the first three weeks of June 2021.
This signals a healthy revival in consumer demand and a noticeable bounceback in supply chains. It is particularly apparent in healthcare products like:
- Chyawanprash
- Honey
- Other immunity-boosting products
These products are seeing a growing consumer demand, particularly in rural India.
Despite the pandemic, or perhaps because of it, there’s been significant growth within the Indian eCommerce sector. Supply chains have accordingly realigned with the Indian warehousing sector and are expected to attract more investment as time progresses.
For example, major Indian eCommerce players like Grofers and Big Basket are rapidly rising in the online groceries market.
Recent reports show a five-time growth in sales during the initial phase of lockdown.
As a result, these companies are looking to maximise efficiency by storing large proportions of their inventory closer to where their customers live.
Related: Learn about supply chain risk management
Why source for products in India?
India is a popular country to source products from because of its fast rise to prominence as a global manufacturing center. By 2025, India's manufacturing industry might be worth $1 trillion.
Here are a few good reasons why sourcing from India might be a great move for your company:
Easy to make small quantity orders
Handicrafts abound in India, enabling sellers to meet even the most basic of demands. The local vendors are often flexible with smaller orders. In general, suppliers need 200-500 units as a minimum.
A 50-piece order is frequently acceptable, as long as there isn't a lot of customization and detailing required.
Safeguarding your IP
IP protection is a major point of dispute in the US-China trade war. Imports manufactured in India, however, mitigate this issue. When it comes to protecting their customers' IP, Indian suppliers often go above and beyond other vendors.
Availability of raw materials
Cotton, silk, jute, stone, metal, bamboo, and wood are just a few of India's plentiful native resources. India gets these commodities from inside the country, unlike Vietnam, which imports them from China. Of the total cotton produced worldwide, almost 26% comes from India. India offers products made from these natural resources at very affordable costs.
Tariff-Free Imports
India has emerged as a top destination for Chinese imports. Despite recent changes to India's trading status, which mostly impact industrial and chemical commodities, e-commerce merchants are still allowed to source products from India, making it a viable option.
Easy communication in English
English serves as a unifying force in India, despite the fact that the nation is home to 22 distinct languages. Since English is the second official language in India, you should expect most of the personnel you deal with at your Indian supplier to be fluent in it. Speaking the same language can help a lot in coordination and understanding your requirements.
When it comes to sourcing from India, a few key sectors stand out. One of which is the textile products. Textiles and apparel accounted for 10.33% of India's total exports in 2021–22.
With a spike in demand for consumer electronics and smart gadgets, the electronics sector in India is predicted to surpass $400 billion by 2025. According to statistics from 2022, India is also the fourth-biggest market for automobiles globally in terms of both output and revenue.
Where to source products in India online?
Despite the years-long headwinds, Indian businesses are still sourcing products at relatively reasonable prices from Indian supply chains. This is especially true when compared with sourcing products from abroad. Oftentimes, certain product categories are made better and cheaper in the country than elsewhere.
Let us take a look at where one might be able to find the best suppliers in India.
Global Sources
Global Sources is an all-inclusive online marketplace where you may purchase goods from vendors all around Asia, including China. It allows users to communicate directly with vendors. It also covers a wide variety of categories just like Amazon and Flipkart.
In addition to products, they also provide services such as Help Center, Import & Export Services, Magazines, VIP Buyer, and others.
IndiaMart
This happens to be one of India’s most popular online marketplaces for domestic suppliers and manufacturers. If you plan on sourcing products from them, you would be well advised to carry out some research first.
However, it’s best to check the legitimacy of the suppliers listed on the IndiaMart website.
A good idea would be to use the location filter to ensure that the suppliers you source from are based in India.
Without the filter, you might encounter trading companies that pass on goods imported from China.
That being stated, IndiaMart is the definitive online marketplace for sourcing products and has a diverse range of Indian-made products at fair prices.
Power2SME
Founded in 2012, Power2SME positions itself as a buying club for small and medium enterprises (SME). Here are some categories of materials one can acquire from them:
- Abrasives
- Adhesives
- Power tools
- Plumbing
- Hand tools
- Power transmission
- Security
- Medical supplies
- Office supplies
- Electrical
- Hardware
This supplier affords SMEs a great opportunity to procure raw materials at reasonable prices.
IndustryBuying.com
IndustryBuying.com is an online marketplace that’s par excellence for buying industrial goods and services. What’s more, regular buyers can even avail on credit.
Among the products that one can procure from there are:
- Lab supplies
- LED and lights
- Cleaning
- Electronics and robotics
- Industrial automation
- Furniture
- Lubricants and oils
- Powder and coatings
All in all, they sell goods belonging to more than 40 different categories.
Related: Business B’hai is back with a message about Make in India
Other in-person suppliers to consider
There are also in-person suppliers catering to diverse needs of businesses big and small. One could find them in places like the biannual India Handicrafts and Gifts Fair.
This event is held in Delhi, where one can source the best of:
- Home decor
- Furnishings
- Apparel
- Gifts and accessories
As a matter of fact, there are a large number of trade fairs and exhibitions organized throughout the year in different parts of the country. You can visit these events to source supplies of all kinds.
It’s best to consult a calendar, which can be obtained from TradeFairDates.com.
Trade Shows Relevant to the Indian Market
When companies attend or participate in trade exhibitions (domestically or internationally), they get a leg up in finding Indian suppliers. These shows are also great for sourcing products that meet your specific requirements.
If you want to go to a trade show, here are some options to consider:
YARN Expo 2024: The Southern Gujarat Chamber of Commerce is putting on this show to help the textile sector in Surat grow faster and to educate business owners on the most recent innovations in yarn manufacturing. More than 80 exhibitors will be present at the show. In 2024, it will be held at the Surat International Exhibition and Convention Centre in Sarsana, Surat, from August 9th to the 11th.
India Expo Mart: This trade show hosts many events throughout the year that feature goods from a wide range of businesses, such as home decor, textiles, and automobiles.
Auto Expo: Every two years, the Delhi-National Capital Region hosts a huge trade show for the automobile industry.
India International Trade Fair (IITF): One of the biggest trade fairs in India, the IITF takes place every year in New Delhi and features a diverse array of products from many different industries, including electronics, textiles, and handicrafts. This year's fair will be held from November 14th to the 27th in Pragati Maidan in New Delhi.
Canton Fair, China: This grand fair is China's biggest trade show and is a great place to find products from all major industries. That's why a lot of companies go there to find possible sellers to source the products.
Ambiente Frankfurt: AMBIENTE is definitely the best consumer goods expo in the world. At the festival, dinnerware, gifts, and home decor are the main attractions. For both exhibitors and trade visitors, it's a great way to meet new people in the industry and close big deals.
Sourcing products close to home
India is a fabulous place when it comes to sourcing a diverse range of products at very reasonable prices.
Despite the disruption to the Indian supply chain during the lockdown, a very large number of small businesses are still sourcing products locally.
This is especially true for the e-commerce sector, which has seen a marked uptick over the last year or so. Many of these companies are now looking at renting warehousing space nearer to where their customers live, benefitting local businesses even more.
Compared to sourcing products elsewhere, Indian businesses are at an advantage when procuring goods locally.
You can source high-quality goods at reasonable prices from leading online local Indian marketplaces. Besides convenience, these online marketplaces offer an extensive range of B2B products to a wide range of small businesses looking to boost their growth.
Which type of products can be sourced from India?
India's manufacturing or handicraft dominance is well-known but there are some other product categories that one must explore. If your company is interested in India's abundant supply of goods, here are some of the products to go for:
Authentic jewelry
India is a great spot to shop for trendy jewelry. The country's jewelry is traditional, elegant, and reasonably priced. Most of the pieces of jewelry are made of copper, brass, sterling 925 silver, and gemstones. In terms of global handcrafted silver jewelry exports, India and Thailand account for 35%.
Tea
India is the second largest producer of tea. Due to its abundance of world-class tea farmers and exporters, India is a veritable tea paradise for those who like the beverage. Tea is grown in fifteen states throughout India, but the four in the south—Assam, West Bengal, Tamil Nadu, and Kerala—are known for their prolific and high-quality harvests.
Marble
The finest marble in India is found in Rajasthan. e. The world has been enchanted by this magnificent stone with every gift. Marble accessories and home decor are all the rage and are the best products to source for your business.
Woven fabrics
Among the world's textile and garment traders, India accounts for 4%. India produces a substantial amount of wool, cotton, silk, and jute, and it also ranks first in the world for hand-woven textiles.
Cotton
When it comes to cotton, India has always been dominating the global market. When it comes to expected output during the cotton season, India stands in second position globally. As a result, you can expect to get competitive pricing, high-quality cotton, and a plethora of vendors. Countless organic cotton vendors in India provide chemical-free textiles, apparel, and household linens that are stunning on the inside and out.
Blends of spices
India produces more spices than any other country; in fact, more than 70% of the world's spices come from India. About 75 of the 109 kinds recognized by the ISO are made in this country. Indian spices are just fantastic; they are aromatic, flavorful, and quite affordable.
Artistic ceramics
India has sought global recognition thanks to its diverse ceramics. New statistics from World Export and Rank indicate that India accounts for 3% of the world's ceramic exports, making it one of the leading exporters of ceramic items.
East India's rich red terracotta and the North East's Longpi are unmatched in beauty and utility. North Indian Khurja pottery is inexpensive and ideal dinnerware. Rajasthan's earthenware has a rich lustrous blue and white finish that is hard to find anywhere else.
Ready to start your business?
Looking to start selling? Now you have an entire arsenal of potential suppliers in India that you can reach out to! Whether you're in India or around the world, getting the right product to sell is an important step when you first start your business.
Here are some guides to help you get started on your first business venture:
Whether you're looking to set up shop or start selling online, it is important to establish your brand and get the word out. Having a domain and website will help you spread the word about your business easily.
Good luck!
Editor's Note: This article was first published on Dec 10, 2021 and updated on Aug 1, 2024. It also contains content written by Aman Jha.
