India Sourcing Guide & Key Manufacturing Facts: 2025 Edition
Is India a viable Diversification option for you?
Welcome to the India Country Guide
Whether you're exploring alternatives to China or scaling your India operations, this guide brings you practical data, sourcing insights, and on-the-ground context to help you move smart.
Want to go deeper? Create a profile to connect with others already sourcing from India — as well as experts based in-country who can help you move faster with fewer blind spots.
India Country Guide: Overview
- ➤ India's top exports to the U.S. include: electrical and automotive parts, gems and jewelry, pharmaceuticals, garments and textiles, and mineral fuels, oils, and waxes.
- ➤ India is the U.S.'s largest supplier of gems and jewelry, 2nd-largest of yarn, and 4th-largest of garments.
- ➤ A 26% reciprocal tariff on Indian gems and jewelry took effect April 3rd.
- ➤ India offers a competitive edge over other sourcing markets with its strong design and engineering talent pool.
Curious how to make India work for your business?
USD - Indian Rupee Exchange Trend
Markets of India's Export
Markets of India's Export FY 2023-24
Top Tips for Sourcing from India
- ➤ Mineral fuels & oils & waxes, electrical machinery & automotive parts, gem & jewelry, pharmaceutical, chemicals, garment & textile are India' strengths.
- ➤ Be aware of the delivery time gap thanks to infrastructure challenges.
- ➤ Vet factories for export-readiness — even mid-sized suppliers may lack QC systems or scale for global orders.
- ➤ Work with local agents, inspectors, or sourcing pros who know the regional nuances and factory tiers.
Want deeper insight or local support? Creating a profile connects you with real India sourcing pros — people on the ground who can help you avoid common blind spots and move with more confidence.
Export of India by Sector
Primary Export of India in FY 2023-2024
Key Export Manufacturing Industries
Primary Export industries
Sourcing Chances & Challenges
- ➤ Landed costs from India to US is 11% lower than China if there is no trade-ware punitive tariff with huge young labor force
➤ India’s strength lies in fabless design, and engineering talent (32% of global STEM grads)
➤ India ranked 38th out of 139 countries in the 2023 Logistics Performance Index, after Malaysia and Thailand among the China alternatives.
➤ Despite improvements, certain regions in India still face infrastructural challenges that can affect manufacturing and logistics.
➤ Some industries, particularly those requiring specialized skills, encounter shortages in adequately trained personnel.
If you're navigating these sourcing challenges, you're not alone. Creating a profile gives you access to deeper insight from experts on the ground — and lets you connect in real time with others facing similar hurdles in our growing community.
Labor Productivity in India
GDP/hour worked, 2021 international $ at Purchasing Power Parity in 2025
Why India Still Stands Out
With rising costs in China and growing trade uncertainty, India has become the go-to choice for importers seeking cost-effective production. It offers deep manufacturing experience, sector-specific advantages, and a young, scalable workforce. Add to that its export infrastructure and trade-friendly policies — and you’ve got a sourcing destination built for what’s next.
Got a sourcing question or stuck on strategy? Create your profile and get connected with people who can help — including those already sourcing from India.