Sourcing supplies from overseas helps your small business cut costs and get ahead of the competition. But choosing the source of your supplies is a tough decision. There are a lot of factors you have to take into account, like customs procedures, shipping, duties, and quality.
On all of these fronts, India is one of the best.
Find out the top 8 reasons why the subcontinent is one of the greatest locations to source your supplies.
1. Great economic conditions
Over the last few decades, India has become one of the world’s fastest growing major economies. Economic growth currently averages around 7% per year. A well-educated, English-speaking workforce, export-oriented production, and relatively low wages create excellent conditions for mass production. In addition, the Indian government passed regulations to help boost the country’s exports. No wonder why India is one of the US’ top export partners.
2. Low prices
Low wages and mass production set up a competitive advantage in many Indian economic sectors. Clothing and apparel, gemstones, machinery, pharmaceuticals, and mineral fuels are among the top Indian products imported by US companies. Due to the great variety of products, supplies from India can cover all your small business’ needs at a lower price than you’re used to.
3. Abundance of suppliers
Finding the perfect Indian supplier is easy. There are several online searchable databases like GlobalSources and IndiaMart that list Indian suppliers and their available products. However, beware of scams. Make sure to request a sample and check your prospective supplier’s reputation online before sealing the deal. In addition, read our comprehensive guide to ensure you’re familiar with Indian customs and business culture.
4. Favorable foreign exchange rate
The rupee (INR) is India’s national currency. Since the value of the rupee is usually well behind the USD (1 USD is between 63-68 rupees), your dollars buy you more in India than at home.
5. Easy shipping
Given the distance and geographic conditions, shipping by sea is your best option, especially if you’re located near the East Coast. India has many major ports handling international trade, including Kandra port in Gujarat, along with the ports in Mumbai and Chennai. Your carrier will assist you in choosing the best port for your imports, which will most likely depend on the location of your supplier.
6. Low export tariffs
The Indian government has an export-friendly trade policy in place. Export taxes and tariffs are generally low. You can learn more about the amount of tariffs applied to your imports at the Indian customs authority.
7. Quick US customs procedure
The US Customs and Border Protection (CBP) regulates importing to the US. The CBP’s website contains all useful information you need to know before you can start sourcing goods from India.
The US Customs and Border Protection (CBP) regulates importing to the US
Imports from India are subject to tariffs and duties levied by the US government. With this calculator of the Harmonized Tariff System (HTS), you can calculate the exact amount of duties imposed on your imported goods.
8. Easy international transfers
Paying your Indian supplier will be the easiest part of the process, should you choose to go through Veem. Veem’s unique multi-rail technology, allows you to send international payments to India (and many other countries) quickly, efficiently, and securely.
Since we cut out the middlemen, there are no uncertainties in timing or pricing in your transfers. Both you and your supplier know all the details of the process: amount, schedule, and fees. And because our foreign exchange rates are among the best on the market, your supplier is going to be grateful. Sign up with Veem and enjoy hassle-free international payments.