Last updated: 8/10/2023

Is India Emerging as a Top Sourcing Destination To Diversify Away from China?

Is India Emerging as a Top Sourcing Destination for Businesses Looking to Diversify Away from China?

Have you ever considered sourcing outside of China and considered manufacturing in India instead?

Here are Proboxx’s 5 key takeaways between shipping goods from China Vs India:

  1. Shipping volume: 

    China is currently the world's largest exporter, with a much larger volume of goods shipped globally compared to India. This means that China has more established and efficient shipping infrastructure in place.

  2. Cost: 

    Shipping from China to other countries is generally cheaper than from India due to the economies of scale and the lower labor costs in China. Additionally, China has more shipping routes and ports of entry than India, providing more options and competition for businesses.

    However, the Indian government has been investing in improving the country's infrastructure, including building new ports, airports and highways. This will help to ease logistics and reduce transportation costs for businesses.
  3. Customs and regulations: 

    Customs regulations and paperwork can be more complex and time-consuming in India compared to China. 

    This can result in longer lead times and higher costs for businesses importing or exporting goods to or from India.With that said, the Indian government has been taking steps to improve the ease of doing business in the country, such as simplifying regulations and procedures. 

    Additionally, the government has been actively promoting the country as a manufacturing hub, which can provide a significant boost to businesses looking to set up operations in the country.
  4. Quality control: 

    Chinese factories have a reputation for producing high-quality products at a lower cost than many other countries, including India. However, there have been concerns about the quality of goods coming out of some Chinese factories, and businesses should be careful to check the quality of the products using qualified third party quality control inspectors before shipping.
  5. Political climate: 

    The political climate between China and India can affect the ease of doing business between the two countries. In recent years, there have been increased trade tensions between the two countries, which can lead to delays and additional costs for businesses shipping goods between China and India.

    While shipping from China may be cheaper and more efficient, it is important to have a good understanding of the regulations, quality control, the goods manufactured in each country, and the political climate in both China and India before making a decision on which country to ship from.

    The top 10 most exported products from India are: Leather And Its Products, Petroleum Products. Gems And Jewellery, Automobiles And Equipment, Pharmaceutical Products, Electronic Goods, Dairy Products, Handloom And Cotton Yarns, Textiles and Apparel, Cereal.

    India offers several advantages for businesses looking to produce goods, including a cost-effective and skilled workforce, a large and diverse domestic market, improved infrastructure and favorable government policies. These factors can provide a significant added value to businesses looking to set up operations in India.

    Contact us today to see how we can help with your shipments from India:

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