India: The Ultimate Destination For International Sourcing!

India: The Ultimate Destination For International Sourcing!

Globally, there has been a noticeable shift in the trade patterns. The worldwide shut down due to the COVID-19 Crisis has adversely affected almost every sector and forced a relook at the traditional offline buyer and supplier relationship. It has opened up new avenues for online cross-border platforms in the wholesale supply value chain.

Another changing shift is the rise of the direct-to-consumer (D2C) market and the gig economy. The global D2C market size has shown double-digit growth, with the top three categories formed by apparel, consumer electronics, and furniture. A majority of this sector consists of small and medium lifestyle brands. The boom in small and medium businesses will drive the rising demand for raw and finished materials from markets like India, Vietnam, Bangladesh, and others.

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Challenges faced by other emerging supplying nations

Vietnam and Bangladesh have been making steep inroads in textile supplying, as seen by their upbeat performances in the last couple of years. However, there are multiple challenges, which are impacting their foray on the international stage.

Bangladesh is riddled with issues like lack of value chain infrastructure or sub-standard facilities, compliance concerns as per the international standards, and dependence on imported raw materials.  

Vietnam is dealing with problems like lack of a reliable supplier base, dependence of local supply chain on China, slow response time, lack of skilled workforce, sub-contracting that affects the quality, and bureaucratic hurdles.

These countries are faced with a pressing need to focus on and address these hurdles to maintain growth. India has invested heavily into developing the various aspects of trade infrastructure and labour skilling, is way ahead with an immense competitive edge over them.

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India at the centre of international sourcing

India will drive the success and growth of small and medium enterprises and the D2C sector worldwide. Contributing to it emerging as a ‘Prominent Sourcing Hub’ are multiple factors such as:

  • Availability of quality products
  • Sustainable practices in sourcing
  • Fairtrade policies
  • A rich heritage in handicrafts
  • Skilled and un-replicable artisan expertise
  • Cost-effective labour and better labour working conditions
  • Induction of cutting-edge technology for enabling speed, reliability, and transparency in the value chains

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Availability of quality goods

The main reason for India becoming a preferred sourcing base is the availability of quality goods. India is a hub and is among the world leaders across a wide range of sectors.

Textiles and Apparels – India is the 2nd largest producer and 5th largest exporter in the world. Indian textile and apparel sector has enormous strengths across the entire value chain, from fibre, yarn, and fabric to apparel.

The sector is highly diversified with a vast range of segments, from hand-spun, hand-woven, handlooms, power looms, hosiery, knitting, and sophisticated mill sector. India has a sturdy wholesale market comprising big and small suppliers catering to the world.

Leather – India is the foremost centre of leather and related products. It ranks 2nd in footwear production, 2nd in leather garment production & export, and 5th in leather goods & accessories production.

Food Processing – India is one of the largest producers of several agro commodities. It is the world’s largest milk-producing nation. India is the largest producer of spices, pulses, tea, and cashew. It is also the 2nd largest producer of fruits and vegetables, 2nd largest producer of fish, and 3rd in egg production worldwide.

Furniture – India is the largest producer of jute and 2nd largest producer of bamboo. The Indian government is planning to boost the development of the furniture segment and become a world supplier.

Gems & Jewellery – India houses the biggest hub of cutting and polishing rough diamonds. It is one of the largest exporters in the world with exports at US$ 25.30 billion in FY21.

You can read more about Top 10 products that can be sourced from India.

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Skilled Artisans

India is home to a varied and rich cultural heritage. It is evident by a wide range of staggering designs and motifs used by local artisans, representing the local cultures unique to the many parts of the country. The local artisans produce beautiful designs, most of which cannot be replicated anywhere else. These motifs and patterns increase the value of the end product among consumers. Such work is available across apparel, jewellery, accessories, home furnishing, and home décor.

Rise of the Technical Textile Segment

The demand for technical textiles has gained by leaps and bounds. There is an exponential growth in the requirement for masks, PPE suits, and safety gear. Wearing a mask is slated to become a new norm, even in the post covid era. It has made masks an integral part of the garment accessories segment. Manufacturers and suppliers are using natural and recyclable materials for achieving environmental sustainability, which has made this segment attractive to buyers from small and medium textile-based businesses.

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Policy and government support

The Indian government has identified 20 sectors to develop and become a global leader in supplying. These sectors include textiles, food processing, organic farming, furniture, leather, and footwear. The government aims to boost economic growth and exports by implementing favourable policies, funding support, attracting foreign investments, harnessing new technologies, employing a competitive edge, and investing in upskilling the workforce.

Advanced technology adoption

India is home to many technology-based solution providers worldwide. The entire value chain of wholesale supplying is now being revamped with the adoption of new and advanced technologies like blockchain, artificial intelligence, big data & machine learning, 5G wireless network, digital finance & online payment.

B2B e-commerce platforms like Tradyl, which are built on cutting-edge systems, are reimagining the trade ecosystem. These emerging players aim to provide seamless and reliable supplying solutions to small and medium enterprises.

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Dropshipping has revolutionised the retail market. In the dropshipping model, a store sells something on the marketplace, purchasing the product directly from the wholesale supplier or manufacturer and get it shipped directly to the consumer. Therefore, the seller does not need to own or stock an inventory to fulfill orders. India is likely to reach $200 billion by 2026 with a whopping 51% CAGR in the growth of the e-commerce sector. This will stimulate the growth of the global dropshipping market.

India is on a fast-paced path to creating smart and nimble supply chains, seeking to exploit the immense width and depth of the manufacturing capabilities and become a sourcing ecosystem to the world.

At Tradyl, our vision is to make global trade as easy as local trade. We understand how painful it is for direct-to-customer brands & retailers across the world to find reliable suppliers and source quality products for their businesses. The current pandemic situation makes finding trustable and reliable partners more challenging than ever!

Discover our selection of high-quality products from handpicked and verified suppliers from the best manufacturing hubs of India. Review all the details such as supplier information, product attributes, and prices which are listed with complete transparency. Place an order in just a few clicks, and get ready to experience the new world of travel-free, hassle-free, safe sourcing!



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