How To Import From India And Save 35% On Your Products?

In this post, I’m going to teach you how to get lower prices for your products by importing from India. If you’ve been following my channel, you know I have many videos on how to import from China.

However, China has become more expensive over the years. During the Trump era, heavy tariffs ranging from 10 to 25 percent were imposed on many product categories, which still exist today. These tariffs have caused many companies to move their manufacturing operations to other countries to avoid the extra costs. One of the biggest beneficiaries has been India.

Today’s article will teach you how to go beyond sourcing from China, find great suppliers in India, and get the lowest prices possible.

India’s Booming Economy

India’s economy has been booming, with significant strides in various industries, from textiles, handicrafts, and jewelry to technology, pharmaceuticals, and automotive. The range of products India offers is extensive and exceptional in quality.

Additionally, India’s proactive government policies have encouraged foreign trade by signing free trade agreements with many countries, including the United States. This means lower duties and no tariffs, making it a great time to import from India. Depending on what products you source, you can find items from India that are as good as or better than those from China, often at cheaper prices.

Comparing Costs: China vs. India

The cost of labor heavily influences the end price of manufacturing any product. Labor costs in India are significantly lower than in China. For example, the average minimum monthly wage in India is about $170 compared to $360 in China, making labor costs in India over twice as cheap.

According to a recent study by Procon Pacific, overall labor costs in India are roughly 37 percent cheaper than in China. This difference in labor costs and tariffs is one reason China has been losing global export market share, while India and Vietnam have been gaining.

What to Source from India

India excels in certain product categories, such as:

• Leather Goods: India is the world’s second-largest exporter of leather products, including shoes, bags, and garments.
• Textiles: India is a major producer and exporter of textiles like cotton, silk, and wool.
• Steel, Ceramics, and Bamboo Products: India offers a variety of unique products in these materials that can be imported and sold in other countries.

Different regions in India specialize in various products. For example:

• Mumbai specializes in steel kitchen products and textiles.
• Ludhiana specializes in wool products.
• Panipat supplies home furnishings.
• Bangalore specializes in apparel, hardware, silk, and coffee.
• Khurja makes ceramics.
• Kolkata specializes in leather bags.

Why I Source from India

While India may not completely replace China for sourcing, here are my main reasons for sourcing from India for my eCommerce store, Bumblebee Linens:

• Lower Production Costs: Our handkerchiefs and linens are about 10 to 15 percent cheaper, especially after factoring in customs duties.
• Diversification: Diversifying my factories worldwide helps mitigate risks from US-China relations.
• Textile Quality: India is excellent for textiles, offering good quality at lower prices.

Finding a Manufacturer in India

Finding a manufacturer in India requires some legwork, as there’s no equivalent to Alibaba for Indian suppliers. However, many Indian factories have websites you can browse online.

The easiest way to find a supplier is by using Google Bard. For example, if you want to source leather bags from Kolkata, you can use this prompt: “Provide me with a list of potential suppliers from Kolkata that have more than 100 workers in their factory and export to the United States.”

You can also use a sourcing agent who resides in India and has close ties to the factories. They can help contact vetted suppliers, negotiate on your behalf, and navigate various certifications required for importing from India.

Approaching Suppliers in India

When contacting suppliers, project confidence and treat your supplier like a partner. Use a professional approach and never admit you’re a newbie.

Here’s a sample script for initial contact:

“Hi, my name is Steve, and I’m a buyer for Bumblebee Linens, a store in the US that sells handkerchiefs. We are interested in carrying many of the items that you have to offer. Specifically, I would like to get pricing and availability for the following items. Please send pricing in 500, 1000, and 5000 unit quantities. If you could send us your product catalogs, lead times for manufacturing, and minimum order quantities, we would greatly appreciate it. Thank you. – Steve”

 

Negotiating Prices

Once you receive pricing, remember that you are expected to negotiate. Have a target price in mind, generally aiming for at least a 66 percent margin after shipping and customs. Request samples to ensure quality before placing a bulk order.

Questions to Ask Before Production

• What is the MOQ (minimum order quantity)?
• What is the production time?
• How will the product be shipped?
• What is the HS code for the product?

Once ready to place your order, expect to put down a deposit of 20 to 30 percent of the order cost and pay the remaining balance upon completion. Quality control can be an issue, so ensure thorough checks before committing to large orders.

Import from India Alternative：

Certainly!

Here’s a table of common products imported from India along with potential alternative sources for each item:

If you have specific products or sectors you are particularly interested in, please let me know for more detailed alternatives.

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