Sourcing Products from India: The Main Benefits

by Procurement Freelancers Team

Nowadays, sourcing is the most common phenomenon. A robust reason behind this is that sourcing allows organizations to focus on other essential sectors of their business and execute them with utter importance. Another reason behind organizations opting for this amazing option is sourcing allows companies to maintain product quality while lowering the production cost. But most of them do not know where they should source their products from? China is no more an option with the increased China-US differences and increased labor cost. Also, western nations have a high labor cost. On the other hand, Indian sourcing consultants have gained an upsurge in providing quality products to other nations in recent times. Cheap labor costs, easily available raw materials, skilled workforce, and superior infrastructure have made most organizations look forward to sourcing from India. So, sourcing products from India can be considered an efficient possibility.

Let’s read on to the benefits one can have from sourcing products to India. Because if organizations explore Indian markets and their possibilities, it will help them attain increased growth levels.

Raw material control

raw material availability in IndiaIndia is an ideal location for sourcing products as it is the hub of different types of factories. The diversity of factories in India makes it the place where one can find almost every product. These factories are sticklers about certifying raw materials and testing them. Also, India is known for having a wide variety of metal ore. Most organizations that deal with metal projects find it convenient to source metal products from Indian factories. These ways organizations can earn huge benefits by adding India to the respective global supply chain. In India, metal ores are found in abundance. An even better fact is that these metals are found at cheaper rates. So, it can be advantageous for organizations who deal with metal projects as they can source at lower prices and get quality in return. Business firms can easily lower their production cost and overall cost by outsourcing production operations to India procurement freelancers.

Labor resources

labor resources in IndiaUnlike every other Asian country in the world, India produces the maximum number of engineers per year. These engineers are given proper knowledge and training, while they complete their courses from renowned institutions in India. They are aware of the advanced technology and operational techniques. They are provided with proper training that helps them gain experience and makes them skilled in their work line. They are also taught the usage of advanced technologies so they can implement them properly in the production operations. What is more beneficial is that Indian engineers are bilingual. The majority of Indian citizens can speak English fluently according to a study. When companies conducted Asia sourcing activities, Indian engineers gained a distinctive spot. India also has a labor force of 500 million and among them, 90 percent is skilled with advanced technological knowledge and experience.

Read: Tips to Follow When Sourcing Products from India

Labor cost advantage

labor cost in India

Labor cost benefits are another reason why organizational firms prefer choosing India as a sourcing destination. When compared with western nations, the labor cost in India is comparatively cheap. Another solid reason behind organizations shifting from China to India is that the labor cost in India is lower than in China. There are only a few drawbacks that let India stay behind China when it comes to sourcing quality products. For example, the transportation facilities in India are very low. Another reason might be comparatively poor infrastructure than China. But a lowered labor cost is something crucial that attracts organizations from around the world. And the Indian government along with Indian sourcing consultants is taking necessary steps to mitigate the issues associated with transportation and infrastructural facilities. You can hope for an improvement in the scenario and you can trust the Indian sourcing organizations fully.

Overhead charges may be high but they are for your good

overhead charges in IndiaSome overhead prices are incredibly high, but you might want to include them in your services to attract potential clients and satisfy the old ones. These operation’s overhead costs might also expand the business model or help you compete in the market. If you find that handling such operations is becoming much expensive for you, choosing outsourcing to India as an option can be a good deal. Besides making the deal cheaper, outsourcing can also help cover up the entire process in less time and create competency in the business model.

Moreover, the hard-working and committed Indian procurement freelancers work professionally to satisfy you with the final product. They are also ready to put in some extra effort and time. A round-the-clock operating cycle enhances productivity and makes sure they can deliver the project before the deadline. Organizations can concentrate more on their key operations if they source products from India. All these benefits of sourcing products from India have added a different dimension to Asia sourcing activities.

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Michael Wang August 4, 2021 - 1:53 am

Indeed the points are correct existing there in India, but they are just the “surface” which won’t form a solid conpetitive force to make it substainable and stronger enough, the risks include:
1) Not good manufacturing management as Japan, China (mainland+Taiwan), and even worse than H.K. Seems is good in top management beyond manufacturing but it is not the topic we are talking about here about manufacturing sourcing;
2) Not good enough to strive. Chinese workers are willing to become slaves if necessary, they are willing to work for 20 hours through night, have a 4-hours of sleep in morning and come back to factory at 13:00 after lunch, hard to see that in India;
3) Not good enough in transportation. You can see that by comparing related data with China, i.e. the length & speed of railway and roads, the situation of ports and containers… this make India inefficient to deliver out even above 2 points are resolved;
4) Not a stable environment. Today India is facing problem of policemen shoot policemen, people are losing lives because the lost control in COVID, tomorrow India could face conflict between 2 races…
All above are risks for doing business in India, how can I take risk of my life just because I went to there for a supplier audit? So if it’s just for a temperary buying, India would be an option, if we are talking about long term and deep cooperation, I rather to Thiland or Vietnam, they’re better.

RAVIKUMAR November 30, 2022 - 6:20 am

Agree that India needs to have good infrastructure to serve global level orders and mass production.
but pl. note India is safe bet for the foreign customers and Global sourcing of engineering products, Highly complex parts and we own the what we agreed and never run way from the situation.
Covid -19 FULL WORLD WAS BEHIND INDIA FOR VACCINE SUPPLIES AND Our proud govt did it and saved world.
Also note no country came forward to supply and the vaccine, But India did it.
Still chian and western countries struggling to come out of Covid -19 , but India is upright in this situation.
India is reliable source for Technology , software and India can be trusted for the Supplies of all mechanical commodities.

Pl. evaluate our country based on the facts not the perceptions of one visit.
I am not defending India but Truth is Truth


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