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Strategic Sourcing from India: Your Complete Procurement Guide
Discover why India has emerged as a powerhouse sourcing destination combining competitive costs with unmatched scale across manufacturing and services—from electronics and pharmaceuticals to world-leading IT and engineering capabilities.
Why India Is Your Next Strategic Sourcing Hub
146%
Electronics Growth
Increase in electronics output from FY2020-21 to FY2024-25, driven by Production Linked Incentive programs across 14 key sectors
$224.4B
Software Exports
Projected software export revenue for FY25, supported by 1,700+ global capability centers operating at scale
20%
Global Generics
India's share of global generic pharmaceuticals by volume, making it a critical supplier to over 200 countries worldwide
India's sourcing landscape is experiencing unprecedented momentum thanks to policy initiatives like the PLI scheme that are catalyzing capacity and quality upgrades. The country's export resilience is evident in steady growth across both merchandise and services, signaling robust external demand despite global economic fluctuations.

Policy Momentum: The Production Linked Incentive programs are transforming India's manufacturing ecosystem by incentivizing quality, scale, and innovation across sectors from electronics to pharmaceuticals.
What to Source from India: High-Value Products
Electronics & Electrical
Fast-rising export category reinforced by PLI-driven mobile and component manufacturing scale-up. Perfect for buyers seeking competitive alternatives to traditional sourcing bases.
Pharmaceuticals
India provides approximately 20% of global generics by volume and is a leading vaccine manufacturer supplying over 200 countries, with robust quality systems aligned to international standards.
Gems & Jewelry
India ranks first globally in cut-and-polished diamonds with roughly 26.5% market share, offering unmatched craftsmanship in gold and silver jewelry at competitive prices.
Auto Components
Advanced automotive technology components are targeted under PLI, improving competitiveness and localization while meeting global OEM quality requirements.
Beyond these flagship categories, India offers substantial sourcing opportunities in machinery and engineering goods, organic chemicals, iron and steel products, textiles and agrifood—particularly cereals like rice with mature quality protocols. The country's manufacturing base combines cost advantages with increasing quality standards, making it an attractive alternative for procurement leaders seeking to diversify their supply chains.
Services Sourcing: India's Digital Advantage
Technology Services Portfolio
India's services exports have demonstrated remarkable resilience, with the tech industry revenue projected at $282.6 billion in FY25. This robust ecosystem enables procurement leaders to access world-class capabilities across:
IT Services & Consulting
Scaled delivery of complex global contracts across cloud, data, and application modernization with growing discretionary spend recovery
Business Process Management
Mature operations in customer service, finance, and back-office processes that support both cost reduction and quality improvement targets
Engineering R&D
The fastest-growing tech sub-segment serving BFSI, healthcare, retail, automotive, and industrial clients with product engineering excellence
"India's service providers have evolved from cost arbitrage to innovation partners, delivering end-to-end solutions that drive business transformation."
The key advantage for buyers is the capacity depth in these services—large talent pools enable flexible engagement models from staff augmentation to fully managed services, allowing procurement teams to right-size their sourcing strategy based on organizational needs and risk appetite.
Your Practical India Sourcing Checklist
1
Strategic Selection
Shortlist categories with structural advantages (electronics, pharma, engineering, diamonds) and verify supplier PLI participation or equivalent quality certifications
2
Pilot Projects
Start with smaller orders in top export categories to test lead times, quality control processes, and documentation flows before scaling volume
3
Integrated Approach
Blend product and service sourcing by pairing engineered components with Indian ER&D partners to compress cost and time to market
4
Expansion Strategy
Use export-heavy categories as an on-ramp, then expand into adjacent components and higher-value variants as supplier performance proves reliable
India's sourcing strengths offer procurement teams a unique cost-to-quality edge, especially in policy-supported sectors like electronics and automotive manufacturing. The country's exporters routinely meet stringent buyer standards across regulated markets, making compliance management more straightforward than in emerging sourcing destinations.
For strategic buyers looking to build resilient, cost-effective supply chains, India represents not just a tactical cost play but a comprehensive sourcing solution combining scale, quality, and innovation across both products and services.