Why Sourcing from India Is Becoming Increasingly Popular

What is sourcing, and why is India a growing hub for global production? Sourcing is the process of finding and managing suppliers to provide goods and services for manufacturing. Today, sourcing from India is gaining momentum as companies look for China manufacturing alternatives and seek supply chain diversification.

The Shift in Global Sourcing Trends: Why It Matters

Understanding Strategic Sourcing

Strategic sourcing goes beyond choosing the cheapest supplier. It’s about optimizing total value by considering cost, lead time, compliance, flexibility, and scalability. In today’s volatile global trade landscape, brands are increasingly focused on risk reduction, regional diversification, and long-term supplier reliability.

What’s Driving the Shift from China?

• Rising labor and production costs.

• Tariff impacts and trade wars.

• Supply chain disruptions during COVID-19.

• Political instability and overdependence on a single region.

According to McKinsey & Company, over 60% of global executives plan to restructure their supply chains to reduce risk by 2026.

Why India? Strategic Advantages of Sourcing from India

India’s Rise in Global Manufacturing

India is fast emerging as a global manufacturing hub. Government initiatives like “Make in India” and the PLI Scheme (Production Linked Incentive) have incentivized industrial expansion, especially in electronics, medical devices, textiles, and beauty product components.

Key Benefits of Sourcing from India:

1. Competitive Labor Costs.
2. Skilled Engineering & Manufacturing Base.
3. English-Speaking Workforce.
4. Regulatory Alignment – ISO 13485:2016, CE, FDA standards‍
5. Strategic Location for EU and US exports.

Core Industries India Excels In:

• Textiles & Silicones – Used in skincare wearables & LED devices.
  
  
• Electronics & LEDs – Growing regional hubs in Tamil Nadu and Karnataka.
  
  
• Essential Oils & Natural Ingredients – For wellness, cosmetics, and medical use.
  
  
• Tooling & Prototyping – High-precision CNC machining & injection molding.

Milestones in Global Sourcing: From China to Diversification

Timeline of Global Sourcing Evolution

• 1990s–2010s: China dominates due to scalability and cost
  
  
• 2010–2020: Trade shifts, eCommerce growth, and demand for customization
  
  
• 2020–Now: COVID-19 disruption, inflation, global scrutiny
  

India becomes the preferred alternative due to its expanding infrastructure and improved compliance with international manufacturing standards.

Learn more about Light Tree Ventures global sourcing network

Leaders in Sourcing: Who’s Leading the India Manufacturing Boom?

Key Regions Driving Sourcing Innovation:

• Gujarat: Electronics, LED components, contract manufacturing.

• Tamil Nadu: Plastic molding, tooling, medical assembly.

• Maharashtra: Private label beauty manufacturing.
  

Light Tree Ventures: Your Strategic Manufacturing Partner

• Netherlands HQ with strategic offices in India, China, and USA

• India Unit: ISO-certified production, product assembly, and EU logistics

• Trusted by wellness, skincare, and clinical device brands

Explore our private label skincare manufacturing and white label LED solutions

Actionable Guide: How to Source Smart from India

1. Define Your Compliance Needs

• FDA, CE, ISO certifications must be non-negotiable for wellness and medical products.

2. Prioritize End-to-End Partners

• Choose a vendor who can support from design to products.

• Reduce the friction of managing 4+ third-party suppliers.

3. Validate Manufacturing Capabilities

• Request samples, certifications, and client references.

• Ask about automation, scalability, and packaging readiness.
  

4. Focus on Relationship + Communication

• English fluency, digital communication, and local account managers = fewer mistakes and faster iterations.
  

FAQ:

What is sourcing, and how is it relevant to my brand?

Sourcing is the process of selecting and managing suppliers for raw materials or finished goods. It impacts cost, quality, lead time, and compliance—especially critical in beauty and wellness industries.

Why is sourcing from India becoming more popular?

India offers lower costs, skilled labor, growing infrastructure, and alignment with international standards. It's seen as a reliable alternative to China.

What materials or products can I source from India?

Silicone masks, LED components, essential oils, stainless steel molds, and private-label cosmetic products are commonly sourced.

How does Light Tree Ventures manage sourcing in India?

We operate a certified facility in India focused on production, fulfillment, and EU-compliant packaging. We also offer design-to-delivery support for B2B brands.

What’s the difference between white label and private label sourcing?

• White Label: Ready-to-sell products with your branding
  
  
• Private Label: Custom-designed products tailored to your brand’s needs and identity
  

Don’t Just Source Globally. Source Strategically.

Sourcing from India offers a competitive edge when done strategically. By partnering with trusted suppliers and leveraging India’s growing manufacturing expertise, brands can reduce costs, meet compliance, and scale faster.

Light Tree Ventures makes it easy with our global sourcing ecosystem designed for brands in skincare, wellness, and medical tech.

Ready to source smarter? Talk to our team today to explore India-based sourcing and private label solutions.