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Sourcing from India

India, an expanding middle class, a higher disposable incomes and proactive Government policies have underlined the explosive growth of the Indian industries. Over the last decade (since 1991), the market has opened up to global majors and today, the Indian industries rivals some of the countries in terms of potential growth and market size.

India offers global industries an opportunity to buy quality products at an extremely competitive prices and in a healthy business climate. The economic policies, regulatory environment and the taxation system has become more of foreign-buyers-friendly. Particular attention is given to the industry-related logistical issues.

This section will discuss about some of the useful guidelines for sourcing from India.

The Basic Steps Involved in Sourcing
For a firm or individual, before sourcing from India take into consideration the following few tips:

Pick product which is to be sourced.
Define your supplier and the product criteria.
Search for relevant suppliers.
Research the supplier's qualifications.
Evaluate the samples received.
Audit factories.
Test the order.
Choose supplier.
Establish reliable quality control through dependable agent.
Establish communications.
Establish supply chains.
Monitor patent protection.
Enforce long-term cost reductions.
Repeat the process as needed.

Why Source from India
The question arises about why to source from India. What are the advantages to source from India and what is the infrastructure which will support for easy sourcing. The following briefing will answer all the related questions:

Among Top 10 economies of the world.
Vast manufacturing base including aircraft, locomotives, ships, cars, power plants, capital machinery, chemicals, consumer electronics, textiles and food products.
Top destination in the world for low-cost, high-value software services and R&D.;
Largest concentration of English speaking educated workforce in Asia.
The 2nd largest railway network in the world, together with vast coastline & sea ports.
A free market society with advanced legal, financial systems and a free press/media.
Business and cultural linkages with neighbouring countries Bangladesh, Sri Lanka, and Nepal provide a platform for sourcing from them as well.
The country has an abundant, low-cost base of labour which has long-term sustainability and very high skill.
Foreign companies are seen more as partners in building domestic manufacturing capabilities rather than a threat to Indian businesses.

Sourcing Agent
To overcome with the problem of initial capital, management outlay, and the complex operational and regulatory environment, buyers can take the service of sourcing firms in the country. Some of the sourcing agents covers the entire process, from finding suppliers to transferring of the design specifications to setting up the supply chain and conducting quality control. These sourcing agents are good for small companies or for those companies which has limited management resources. These firms usually charge a commission between 3 to 12 percent.

Other sourcing agents operate like a matchmaker. They gather providers of high-value manufacturers according to client specifications and offers order coordination, trade financing, and limited delivery services. These firms are useful for those companies who are comfortable at handling their own supply management and are willing to take a more hands-on approach.